Asia Pacific Still Remains a Lucrative Market for Dual Clutch Transmission Technology

Stepping forward into an era of electronic and hybrid cars, and other farfetched automotive concepts has reduced the dominance of conventional technologies. The current robust status of global automobile sector has been majorly contributed by successful implementation and efficient competency of transmission technologies such as the dual-clutch transmission. Few years back, dual clutch transmission (DCT) was among the most prominent technologies ever developed in global automotive sector. At present, the eminence of twin-clutch transmission systems is being adversely affected by continuously-variable transmissions (CVTs) or advanced DCT technologies such as direct-shift gearbox (DSG) systems. While DCT technology is gaining traction among Asia Pacific (APAC) countries such as China and Japan, its adoption is significantly dipping in North America and Western Europe.

Growth Opportunities in APAC Region

The first commercialisation of DCT technology in APAC region can be dated back in 2009 when BorgWarner, a North American automotive component manufacturer, jointly ventured with China Automobile Development United Investment Co., Ltd. Inspiring from such industrial triumphs, APAC automotive companies have preferred opting for similar partnerships with leading transmission system manufacturers from the global DCT market. These multinational mergers created favourable growth opportunities by acquiring dominance over the then untapped APAC market for dual-clutch transmission. By 2020, the APAC region is projected to account for more than 40% of revenue share in the global automotive DCT market.

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Being the world’s largest market for automobile production gave an overpowering impetus on enhanced transmission systems in China. Even though varying emission standards altered the adoption levels to some extent, leading auto giants such as Volkswagen going ahead with their DCT business expansion in China. India and South Korea are still recognised as the hotspots for automotive industries, and are known to garner higher investments for automobile technology. However, expansion of the market is more likely to be curtailed in Japan, owing to the unsuitable atmospheric temperatures that instigate higher preference to CVT systems.

Future of DCT in Western Europe

In 2014, Western Europe dominated the global DCT market by accounting for more than 35% of market value. The collective automobile production of Germany and France surpassed 7 million by the end of 2015. In spite of such constructive specifics, Western Europe is exhibiting a considerable plunge in the consumption of dual-clutch transmission systems. The region is witnessing a shift to CVT systems, and other smooth gear-shifting technologies. Nonetheless, the consumption of dry clutch DCT is expected to be higher among mid-sized vehicles. Moreover, trucks and other heavier vehicles in Western Europe will continue to be equipped with wet clutch DCT. Unfortunately, diverse government regulations across Western European countries are liable for evidently curbing a thorough adoption of DCT systems.

Low Adoption of DCT Technology in North America

North America holds huge potential for the growth of the global DCT market, owing to presence of the U.S., which is the second-largest vehicle manufacturer in the world. The automotive twin-clutch transmission segment was once the jewel of automobile transmission market in North America, and attained over US$ 1.3 Bn market value in 2014. But, quicker gear-shifting technologies swooped in and replaced DCT in a span of less than a decade. The key factors that lead to the fall of DCT systems in North America’s automobile industry include,

  • Complaints owing to faulty transmissions in eight- & nine-speed gear range.
  • Preference to CVT as it does not designate the clutches separately to odd and even set of gears like DCT systems.
  • Implications arising when Ford’s dual-clutch gearbox fared well on highways, but staggered in the cities.
  • Customer grievances resulting from lack of throttle response in Ford Fiesta’s PowerShift transmission (DCT system).
  • Rising need to add torque converter for ensuring smoother performances in instances of drastic acceleration.

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About Anant Sharma 14 Articles
Anant is keenly interested technology trends and their impact on global economics. Anant is an energetic, innate self-motivated, and ambitious person who always ardent to learn new things, having more than 4 years of experience in the field of market research, consulting and advisory of Telecom and Information Technology sector. Anant is a professional with the good understanding of performance management metrics in business functions with the ability to scrutinize and analyze business problems, and integrate and use the unstructured data source to develop innovative solutions. Anant is having strong knowledge about Cloud Computing, Enterprise Mobility, Telecom, and Data Center and he loves to analyze CAPEX and OPEX optimization, merger & acquisition, and macroeconomics trends that has happened and about to happen in technology and telecom ecosystem. When Anant is not busy in untangling the business conundrums, he is surely relaxing with mythological fictions.