Automotive Flywheel Market Expected to Reach $10.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Automotive Flywheel Market," The automotive flywheel market was valued at $7.4 billion in 2022, and is estimated to reach $10.7 billion by 2032, growing at a CAGR of 3.8% from 2023 to 2032.

Asia-Pacific dominated the global automotive flywheel market in 2022. This is primarily due to the increase in the involvement of original equipment manufacturers in the automotive component industry combined with the consolidation of parts distributors. Moreover, factors such as growth in the automotive industry and retail sectors, owing to a significant rise in per capita income and rapid urbanization drive the market expansion.

Asia-Pacific is the leading automotive manufacturing region and has witnessed an increase in the adoption of low, mid, and high-end vehicles. Asia-Pacific is the most promising market for automotive flywheel manufacturers as most of the emerging countries such as China, India, and Japan are a part of this region. The increase in the number of automotive manufacturing plants and the rise in sales of automobiles have significantly contributed to the growth of the Asian market. Leading automobile manufacturers are working on the development of automotive low-weight flywheel systems to offer enhanced performance, better traction control, and higher safety of vehicles, which is anticipated to boost the growth of the automotive flywheel market in Asia-Pacific.

Moreover, Chinese authorities have placed greater emphasis on the automotive components market. Chinese suppliers aim to provide basic and low-end products and services for the automotive component industry. In addition, the increase in demand for high-tech, high-value-added products such as engine components, transmission system components, and car detailing products creates vast opportunities for the growth of the market. Furthermore, the expansion of the auto industry with help of government initiatives is anticipated to drive the growth of the market. For instance, in July 2022, according to Fitch Ratings, the Chinese government's recent initiative to expand credit support for auto purchases is projected accelerate the penetration rate and expansion of the auto industry. In response to sluggish economic growth, China has intensified efforts to increase domestic demand, especially in the auto industry. These factors are expected to fuel the growth of the market.

The semi-automatic and automatic transmission provides a more convenient driving experience for consumers, as they eliminate the need for shifting gears manually. This convenience factor has led to an increase in demand for these types of transmissions, which is expected to drive the growth of the segment during the forecast period.  In addition, many semi-automatic and automatic transmissions are designed to improve fuel efficiency, which is an important factor for consumers concerned about the environment and rise in fuel costs. In addition, advancements in transmission technology have led to improved performance and reliability of semi-automatic and automatic transmissions, making them more attractive to consumers.

Moreover, luxury vehicles often come equipped with semi-automatic or automatic transmissions, as they provide a smoother and more comfortable driving experience. The increase in demand for luxury vehicles has contributed to the growth of the semi-automatic and automatic transmission segment. With the rise in globalization of the automotive industry, the demand for semi-automatic and automatic transmissions has grown as these transmissions are more common in some parts of the world than other types of transmission. As the automaker seeks to compete in global markets, they may choose to offer their types of transmission to meet the demands of consumers in different regions. This factor is anticipated to fuel the growth of the market.

COVID-19 Impact Analysis

The industry faced several challenges due to the global economic downturn and supply chain disruption caused by the pandemic. The lockdowns and restrictions on movement imposed by many countries to curb the spread of the virus led to a sharp decline in consumer demand for new vehicles. As a result, many automotive manufacturers were forced to suspend or reduce production, leading to a decrease in the demand for flywheels. Moreover, the automotive flywheel industry was affected by the shift toward electric vehicles, which require different types of energy storage and transfer mechanisms. This led to a decrease in demand for traditional flywheels and increased focus on developing new technology to meet the needs of the emerging electric vehicle market.

KEY FINDINGS OF THE STUDY

• By type, the dual mass segment is anticipated to exhibit significant growth in the near future.
• By transmission type, the continuous variable transmission segment is anticipated to exhibit significant growth in the near future.
• By vehicle type, the commercial vehicle segment is anticipated to exhibit significant growth in the near future.
• By Distribution Channel, the aftermarket segment is anticipated to exhibit significant growth in the near future.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global automotive flywheel market are AISIN CORPORATION, EXEDY Globalparts Corp., Ford Motor Company, Pioneer Automotive Industries, Schaeffler Technologies AG & Co. KG, Skyway Precision Inc., SPEC Clutch, Inc., VALEO SERVICE, and ZF Friedrichshafen AG.