The motor vehicle transmission and power train parts manufacturing expenses in Canada have experienced significant variability over the past decade. From 2013 to 2023, expenses increased from 2.3272 billion CAD to 4.7989 billion CAD, marking considerable growth despite some fluctuations. Noticeable spikes were observed in 2014, 2017, and especially in 2018, which was followed by a slight drop in 2019 and a substantial decline in 2020. However, the sector quickly rebounded with a steady rise through 2023, achieving nearly a 10% year-on-year growth from 2022 to 2023 and maintaining a 3.79% CAGR over the last five years. Forecasts predict continued upward momentum, projecting the market to reach 6.0524 billion CAD by 2028, with a forecasted 5-year CAGR of 3.67%, translating to an overall growth rate of 19.74% by 2028.
Future trends to watch include the impact of technological advancements such as electric vehicle (EV) adoption, which could significantly alter manufacturing expenses. Moreover, supply chain disruptions and changes in global trade policies could influence cost structures. Sustainability and green manufacturing practices will also play a critical role in shaping industry expenses, as companies strive to meet environmental regulations and improve efficiency.
