Automotive Transmission Dynamometer Market in North America - Growth Opportunities and Forecast | Technavio

Technavio market research analysts forecast the automotive transmission dynamometer market in North America to grow at a CAGR of close to 7% during the period 2018-2022, according to their latest report.

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Technavio has published a new market research report on the automotive transmission dynamometer mark ...

Technavio has published a new market research report on the automotive transmission dynamometer market in North America from 2018-2022. (Graphic: Business Wire)

In this report, Technavio highlights the development of Engine Torque Pulse Simulation (ETPS) dynamometer as one of the key emerging trends in the automotive transmission dynamometer market in North America.

Transmission and component suppliers must constantly improve the existing transmissions and develop new powertrain technologies in order to help the automotive OEMs achieve the ultimate objective of client satisfaction (durability, driving characteristic, and noise, vibrations, and harshness – NVH).

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In this report, Technavio analysts highlight the cost pressure faced by OEMs leading to higher investments in R&D and testing as a key factor contributing to the growth of the automotive transmission dynamometer market in North America:

Cost pressure faced by OEMs leading to higher investments in R&D and testing

The automotive OEMs are being subjected to heavy cost pressures due to the dynamism of the regulatory environment and demanding consumer base. The implementation of environmental and safety standards is compelling OEMs to develop and implement measures to comply with the regulations, while not transmitting the incurred additional costs onto the consumer. Compliance with the emission regulations will increase the cost of the vehicle. Moreover, the demand for competitively priced automobiles with advanced features will also add to the existing cost pressures faced by the OEMs. Thus, OEMs will direct funds toward R&D of processes and technologies that aim at reducing production costs.

According to a senior analyst at Technavio for automotive service, “Automotive transmission dynamometers extensively test the transmission before it is fitted into the vehicle. This would enable the OEMs to eliminate the high costs and tarnishing of brand reputation associated with recalls due to faulty transmission systems. This signifies that the production process improvements will always remain a priority for the automotive industry, thereby driving the demand for automotive testing equipment, including transmission dynamometers. Additionally, the need for faster time-to-market may complement the growth of the global automotive testing equipment market as these find use in all phases, ranging from pre-production phase to the post-production phase.”

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Automotive transmission dynamometer market in North America segmentation

This market research report segments the automotive transmission dynamometer market in North America into the following end-users, including original equipment manufacturers (OEMs), automotive tier-1 suppliers, and automotive testing centers and body shops and key regions, including the US, Mexico, and Canada.

The low-margin nature of the automotive business exerts a huge amount of pressures on OEMs. Stiff market competition prioritizes quality, safety, and durability for manufacturers at all levels of the vehicle manufacturing line. Consumer complaints can lead to heavy penalties on a company and may entail a loss of reputation.

The US was the leading region for the automotive transmission dynamometer market in North America in 2017, accounting for a market share of nearly 69%. By 2022, the US is expected to continue dominating the market and register the highest growth rate.

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