Automotive Advanced Shifter System Market Size

Automotive Advanced Shifter System Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

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Regional Market Size

Regional Deep Dive

The 'Automotive Advanced Shifting System' market is a growing market, mainly due to the technological advances, increasing demand for better driving experience, and strict safety regulations. North America is characterized by the presence of large automobile manufacturers and suppliers, which promotes innovation and development. Europe is witnessing a shift towards electric vehicles, which is influencing the design and functionality of the shifting system. The Asia-Pacific region is characterized by a booming automobile industry and rising incomes. The Middle East and Africa region is experiencing a gradual uptake, influenced by the development of the transportation network and the increasing number of vehicles. In Latin America, cost-effective solutions are being developed to meet the diverse market needs.

North America

• The prevailing tendency in North America is towards electric vehicles, and the manufacturers are introducing improvements in the gearshift systems to increase the convenience of the drivers and the energy efficiency of the vehicles.
• Regulations such as those of the National Highway Traffic Safety Administration are pushing for a greater safety in vehicles. These changes directly influence the design and function of the gearbox.
• BorgWarner and ZF are investing in R & D to develop smart shifters with better ergonomics and more connectivity. In line with the increasing importance of high-tech car features for consumers, the development of smart shifters will be driven by a growing demand for high-tech features in cars.

Europe

• The European car industry is increasingly orientated towards sustainable mobility, and companies such as Volkswagen and BMW are in the vanguard of developing shift systems compatible with hybrid and electric vehicles.
• The most exacting requirements of the European Union on emissions are influencing the development of shift systems, encouraging manufacturers to produce lighter, more efficient systems that help the overall performance of the car.
• In the meanwhile, the technological collaboration between the car manufacturers and the technology companies, like the one between Daimler and Bosch, has been developing new shift systems that are able to work in harmony with the automation of the vehicle.

Asia-Pacific

• China and India, with their fast-growing automobile industry, are in great need of advanced shift systems, and companies such as Geely and Tata are investing heavily in R&D.
• The government-backed electric mobility initiatives, such as the Chinese New Energy Vehicle (NEV) programme, are also having an effect on the design of gearboxes. The shift systems have to be adapted to new power trains and new user-interfaces.
• The Asians are embracing the latest technological advances in the field of automation and interactivity. Companies such as Honda and Toyota are developing new gearshift designs to enhance driver interaction and vehicle control.

MEA

• The automobile industry in the Middle East and Africa region is slowly evolving, with countries like the United Arab Emirates and Saudi Arabia investing in smart cities and smart mobility, including shifter systems.
• The evolution of the shifter has begun, influenced by the alliances between the local manufacturers and the great groups Valeo and Continental, who transfer their know-how.
• The diversification of the economy of the region, which is resulting in an increase in the sale of cars, is driving the demand for more and more complex gearboxes that will be able to serve both the luxury and the economy car market.

Latin America

• Latin American automobile production is now directed towards economy. Fiat and Volkswagen are making low-cost shift-gears, and a slanting drive-shaft, which is adapted to the local conditions.
• The need for increasing safety regulations has led to the development of a new generation of shift systems, which have increased the driver’s control and therefore his safety.
• URBAN RIDE-SHARE SERVICES are influencing the design of the gearbox, for the rise of companies like Uber and Lyft is putting pressure on the manufacturers to make the vehicle more convenient and efficient.

Did You Know?

“A good 30% of the new cars sold in North America have advanced transmissions that combine the advantages of automatic shifting with the benefits of electronic controls and the availability of a network of connections.” — Automotive News, 2023

Segmental Market Size

The AAS segment plays a key role in improving the functionality and comfort of vehicles. Its growth is currently steady. The main demand drivers are the growing consumer demand for a more automated and semi-autonomous driving experience and the stricter regulations aimed at improving vehicle safety and efficiency. The technological developments in vehicle control and connectivity are also driving the adoption of these systems in modern vehicles.

The electric car market is currently in a phase of mass production. Companies such as Tesla and BMW are already putting advanced shifting systems in their electric and hybrid vehicles. Among the most important applications are in the field of passenger cars, transport vehicles and luxury cars. In these vehicles, intuitive shifting makes for a more comfortable and safe driving experience. The push for sustainability and government mandates for electric vehicles are also accelerating the growth of this market. The trend towards electric shifting systems and haptic feedback is shaping the way we interact with the vehicle.

Future Outlook

The Automotive Advanced Shifter System Market is expected to grow at a CAGR of 5.86% from 2023 to 2032. This growth is mainly due to the increasing demand for enhanced performance and driving experience, and the increasing adoption of electric and hybrid vehicles, which often require more sophisticated shifter technology. As automakers continue to develop new products, advanced shifters will become a standard feature in new models. The penetration rate of advanced shifters in new models is expected to reach approximately 30% by 2032, up from approximately 15% in 2023.

A key trend is the development of electric and automatic shifting systems. These systems not only make the gearshifts smoother but also increase safety through the integration of driver assistance systems. And as governments introduce stricter regulations on emissions and fuel consumption, it will be the manufacturers’ shift to these systems that will drive this trend. Also contributing to the evolution of shifting systems is the rise of the connected car and the Internet of Things (IoT). The latter will enable real-time data exchange and the further development of vehicle dynamics. In the end, the Automotive Shifting System Market is going through a transitional phase, based on innovation and changing customer preferences.