Automotive Advanced Shifter System Market Size, Share, Competitive Landscape and Trend Analysis Report, by Technology, by Component, by Vehicle Type, by Propulsion : Global Opportunity Analysis and Industry Forecast, 2021-2031

The global automotive advanced shifter system market was valued at $10.9 billion in 2021, and is projected to reach $18.1 billion by 2031, growing at a CAGR of 5.6% from 2022 to 2031.

The advanced shifter system is an electronically controlled system, which is responsible for engagement and disengagement of gear. It uses a lever and an electronic system to engage/disengage or change gears according to the requirement of the driver. The advanced gear shifter system identifies when the driver is changing the gear and an electric system operates the clutch and a solenoid actuator to operate gear engagement, disengagement, and shifting. This has positively impacted the advanced shifter system market.

Factors such as rise in adoption of lightweight systems for fuel efficiency, growth in demand for driver & passenger safety, comfort & luxury, and increase in demand for automatic transmission are anticipated to boost the growth of the global automotive advanced shifter system market during the forecast period. However, high cost and cybersecurity threat for advanced gear shifters, and safety and reliability requirement of X -by-wire systems are expected to hinder the growth of the global market during the forecast period. Moreover, increased demand for shift-by-wire technology, and increase in vehicle production in developing countries is expected to create an opportunity for the automotive advanced shifter system industry in near future.

The automotive advanced shifter system market is segmented basis of technology, component, vehicle type, propulsion, and region. On the basis of technology, it is divided into automatic shifter and shift-by-wire (SBW). By component, it is divided into CAN module, electronic control unit (ECU), solenoid actuator, and others. By vehicle type, it is segmented into passenger car, light commercial vehicle, and heavy commercial vehicle. By propulsion, it is divided into ICE, electric & hybrid, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players that operate in this automotive advanced shifter system market are Atsumitec Co., Ltd., Delta Kogyo Co., Ltd., Dura Automotive Systems, Eissmann Group Automotive, Ficosa International S.A., Fuji Kiko Co., Ltd., GHSP, Inc., Kongsberg Automotive, Küster Holding GmbH, Leopold Kostal GmbH & Co. KG, M&T Allied Technologies, Orscheln Products, Sila Group (Silatech Srl), Stoneridge Inc., and ZF Friedrichshafen AG.

Rise in adoption of lightweight systems for fuel efficiency

Modern automobiles require advanced materials to improve fuel efficiency while ensuring safety and performance. Since it takes less energy to accelerate a lighter entity than a heavy one, lightweight materials have the potential to significantly improve the vehicle economy. Regulatory demands on automakers, along with technology advancements in automotive powertrains, have resulted in the development of lightweight automotive systems for vehicles. The combination of sophisticated hardware and software assists automotive component makers in lowering the weight of automobile components, such as shift by wire system.  In addition, heavy steel automotive components can be reduced in weight by 10-60% by replacing them with materials, such as high-strength steel, aluminum, or glass fiber-reinforced polymer composites. The transmission of a vehicle plays an important part in total performance and efficiency as the engine itself, which has led to the development of new high-tech transmission systems, which in turn fuels the growth of the advanced shifter system market. Moreover, automotive manufacturers are increasingly using lightweight transmission and shifter systems to decrease vehicle emissions and increase the fuel efficiency of the vehicle. The lightweight shifting system can be achieved with the help of shift by wire controls. Owing to this, the demand for advanced shifter systems such as shift by wire is expected to grow significantly. The market is expected to witness growth in the coming years backed by the presence of prominent companies in the Asia-Pacific region. Also, implementation of stringent emission norms by the governments and adoption of innovative technologies are expected to propel the market growth. Furthermore, manufacturers are investing considerably in R&D activities, which is expected to propel the adoption of automotive advanced shifter systems market during the forecast period. 

Growth in demand for driver & passenger safety, comfort, and luxury

A vehicle with advanced shifter system is expected to rely mainly on electronics to control a wide range of vehicle operations, including acceleration, braking, and steering. Conventional cars mainly use hydraulic and mechanical technology to conduct basic gear shifting operations, and although the systems are powerful, they can be overly complex, inefficient, and conducive to wear and tear over the years. However, over the years, manufacturers and outside researchers and inventors have been integrating computers and electronics into modern cars. If drivers could simply get accustomed to the idea, advanced shifting systems have the potential to increase comfort, functionality and safety during the drive. Computers and sensors can analyze commands and instruct vehicles on exactly what to do. Moreover, advanced shifting systems have an environmental angle, too, since the technology can improve fuel economy and reduce or improve engine emissions.

For instance, in October 2021, Hyundai Mobis developed an innovative system that can fold the car's steering wheel and place it on the dashboard. The system can move up to 25 centimeters (9.8 inches) back and forth to secure bigger space for the driver's seat. In an autonomous driving mode, the driver can rotate the seat 180° to create an environment for relaxation and conversation with passengers in the rear seat. It is equipped with a secure, new system's durability, and reliability by applying steer-by-wire and other new technologies. Steer-by-wire technology uses electrical or electro-mechanical systems to convert the movement of the steering wheel into electronic signals and vibration is not transmitted to the handle when passing through irregularities or bumps on the road surface. Safety can be improved by providing computer-controlled intervention of vehicle controls.

High cost and cybersecurity threat for advanced gear shifters

Adoption of advanced shifter system, such as shift by wire systems began about 10 years ago, first in military, and later in commercial aircrafts and now in ground transportation sector. Traditional vehicles use hydraulic pressure, cables, and other ways to provide driver with direct and physical control over the gear shifting and speed of the vehicle. Whereas, shift by wire component uses electronics control to carry out the functioning of gear shifting and operate other systems. In addition, the cost of designing, manufacturing, and installing shift by wire system is high and adds up to the cost of vehicle. Thus, high price associated with shift by wire system is anticipated to hinder the growth of the automotive advanced shifter system market. Shift by wire systems control the functioning of vehicles electronically and are a replacement for mechanical linkages, which were traditionally adopted to control the vehicle functions. However, the control of the shift by wire systems can be manipulated by wired or wireless connection, which makes it prone to hacking. In addition, software failure of the system may lead to malfunctioning and error in calculation may lead to a fatal accident. Thus, threat of data hacking and malfunctioning is anticipated to hinder the growth of the market.

Increased demand for shift-by-wire technology

The gear shifting efficiency and effectiveness offered by shift-by-wire system as compared to the traditional manual shifting system is driving the demand for automotive advanced shifter system. The concept has already been proven to operate effectively in high performance applications, such as Formula 1 vehicles, and high-end luxury vehicle, which removes the physical connect between the transmission system and the gear shifters, replacing it with electrical signals transmitted by-wire.

Manufacturers are developing shift-by-wire systems, including sub-systems and electronic components, such as actuators, sensors, and control unit to analyze vehicle data correctly. The shift-by-wire system also helps to gather vehicle data from different sensors in the vehicle which allow shift-by-wire system to react quickly, thereby, enabling efficient gear shift. The features and innovative technology in shift-by-wire systems make it more efficient, thus leading to the wide adoption of shift-by-wire system by automotive manufacturers. For instance, from 2015, Ficosa started providing its shift-by-wire automatic gearshift system in Renault’s Espace.  The shift system is based on a movement detection module. The system is mounted on the electronic board and owing to its small size it also called as Minishifter.  The system uses a three-dimensional magnetic sensor that sends the signal to the ECU system to reproduces the lever movements. Such developments carried by manufacturers are expected to propel the demand for the shift-by-wire systems, which in turn will fuel the growth of the automotive advanced shifter system market during the forecast period.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the automotive advanced shifter system market analysis from 2021 to 2031 to identify the prevailing automotive advanced shifter system market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the automotive advanced shifter system market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global automotive advanced shifter system market trends, key players, market segments, application areas, and market growth strategies.

  Automotive Advanced Shifter System Market Report Highlights

Aspects	Details
Market Size By 2031	USD 18.1 billion
Growth Rate	CAGR of 5.6%
Forecast period	2021 - 2031
Report Pages	335
By Technology	Automatic Shifter Shift-By-Wire (SBW)
By Component	Can Module Electronic Control Unit (ECU) Solenoid Actuator Others
By Vehicle Type	Passenger Car Light Commercial Vehicle Heavy Commercial Vehicle
By Propulsion	ICE Electric and Hybird Others
By Region	North America  (U.S., Canada, Mexico) Europe  (Germany, France, Russia, Netherlands, UK, Poland, Spain, Rest Of Europe) Asia-Pacific  (China, India, Japan, South Korea, Asean, Rest Of Asia-Pacific) LAMEA  (Brazil, UAE, Saudi Arabia, South Africa, Rest Of LAMEA)
Key Market Players	Silatech Srl, Orscheln Products, GHSP, Ficosa, Fuji Kiko, Atsumitec, Küster, Dura, Eissmann Group Automotive, ZF, Delta Kogyo, Kostal, Kongsberg Automotive, M&T Allied Technologies, Stoneridge

Analyst Review

The automotive advanced shifter system market is expected to witness significant growth, due to factors such as increasing demand for vehicles with semi-automatic and automatic transmission, increase in the usage of the shift -by- wire, and accurate and quick responding technology of this system. Moreover, increase in demand for fuel efficient vehicles is expected to propel the demand for advanced shifter systems, which is expected to drive the growth of the automotive advanced shifter systems market during the forecast period.

Factors such as rise in adoption of lightweight systems for fuel efficiency, growth in demand for driver & passenger safety, comfort & luxury, and increase in demand for automatic transmission are anticipated to boost the growth of the global automotive advanced shifter system market during the forecast period. However, high cost and cybersecurity threat for advanced gear shifters, and safety and reliability requirement of X -by-wire systems are expected to hinder the growth of the global automotive advanced shifter system market during the forecast period. Moreover, increased demand for shift-by-wire technology and increase in vehicle production in developing countries are expected to create an opportunity for the automotive advanced shifter system market in near future.

To fulfil the changing demand scenarios, market participants are concentrating on the business expansion strategy to improve the product and customer reach. For instance, in May 2020, Sila Group (Silatech Srl) started new business operations relating manual transmission (MT), automatic transmission (AT) and shift by wire shifting system in Europe, Middle East, Africa, Asia-Pacific, Latin America region.. Moreover, in August 2020, Dura Automotive Systems announced to start the development of new state-of-the-art manufacturing facility in Muscle Shoals, Alabama. In addition, market participants are continuously focusing on product development strategy to expand their product portfolio and meet new business opportunities. For instance, in January 2021, GHSP, Inc. developed dual stack and multi-function controllers. This Dual stack rotary and multifunction controllers utilise GHSP’s utilize common core shifting technology to seamlessly combine multiple different vehicle functions into one easy-to-use controller.

The key players that operate in this market are Atsumitec Co., Ltd., Delta Kogyo Co., Ltd., Dura Automotive Systems, Eissmann Group Automotive, Ficosa International S.A., Fuji Kiko Co., Ltd., GHSP, Inc., Kongsberg Automotive, Küster Holding GmbH, Leopold Kostal GmbH & Co. KG, M&T Allied Technologies, Orscheln Products, Sila Group (Silatech Srl), Stoneridge Inc., and ZF Friedrichshafen AG.

Author Name(s) : Mayank Halmare | Lalit Janardhan Katare

Related Tags

• Access Control
• Adaptive Cruise Control Acc
• Advanced Driver Assistance Systems Adas
• Anti Lock Braking System Abs
• Anti Theft Devices
• Automatic Emergency Braking Aeb
• Cybersecurity For Vehicles
• Electronic Stability Control Esc
• Security Camer

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