Automotive Transmission Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle, Electric Vehicle, Others), By Transmission Type (Automatic, Manual, Dual Clutch, Continuously Variable), By Fuel Type (Gasoline, Diesel), By Region, By Competition, 2020-2030F

Market Overview

Global Automotive Transmission Market was valued at USD 166.16 Billion in 2024 and is expected to reach USD 234.87 Billion by 2030 with a CAGR of 5.6% during the forecast period. The automotive transmission market is evolving rapidly, driven by technological advancements and shifting consumer preferences. The growing demand for fuel-efficient vehicles has led to the adoption of advanced transmission systems such as dual-clutch transmissions (DCTs) and continuously variable transmissions (CVTs), which offer improved fuel economy and smoother driving experiences. Simultaneously, the rise of electric and hybrid vehicles is prompting the development of specialized transmission systems tailored to electric drivetrains, further expanding the market.

Manufacturers are increasingly focusing on reducing vehicle weight to enhance fuel efficiency and meet stringent emission regulations. for Instance, General Motors (GM) announced an USD 888 million investment to develop a next-generation V-8 engine at a New York plant, marking the most significant engine investment in GM's history. This initiative aims to bolster North American manufacturing operations and support the production of advanced transmission systems. The use of lightweight materials like aluminum and high-strength steel composites in transmission components is becoming more prevalent. Advanced manufacturing processes, including additive manufacturing, enable the production of complex, lightweight transmission parts with optimized designs. This trend not only contributes to environmental sustainability but also improves vehicle performance and reduces operating costs. However, the market faces challenges such as the high cost of advanced transmission systems and the complexity of maintenance.

Market Drivers

Adoption of Advanced Transmission Technologies

The automotive industry is increasingly adopting advanced transmission technologies such as dual-clutch transmissions (DCTs) and continuously variable transmissions (CVTs) to enhance fuel efficiency and provide smoother driving experiences. These technologies allow for quicker gear shifts and better power delivery, contributing to improved vehicle performance and reduced fuel consumption. As consumer demand for fuel-efficient vehicles rises, automakers are investing in these advanced transmission systems to meet market expectations.

Electric Vehicle Growth

The rise of electric vehicles (EVs) has introduced specialized transmission needs. While traditional automatic transmissions may not be required in many EVs, the growth of this segment presents opportunities for innovative transmission technologies that suit EV powertrains. In 2023, nearly 14 million new electric cars were registered worldwide, raising the total number of electric vehicles on the roads to 40 million. The number of electric car sales in 2023 was 3.5 million higher than in 2022, marking a 35% increase from the previous year. This figure is over six times greater than the total recorded in 2018.

Consumer Preference for Automatic Transmissions

One of the primary drivers is the evolving preference of consumers for automatic transmissions. The demand for convenience, particularly in urban areas, has fueled the shift from manual to automatic transmissions, leading to increased market share for the latter. For Instance, in October 2024, Maruti Suzuki India Limited (MSIL), announced that the share of automatic transmission models account for 27% of total MSIL automatic sales,  while the Hybrid e-CVT transmission constitutes about 8% of MSIL automatic sales. 

Download Free Sample Report

Key Market Challenges

High Cost of Advanced Transmission Systems

The development and implementation of advanced transmission systems, such as dual-clutch transmissions (DCTs) and continuously variable transmissions (CVTs), involve significant research and development expenses. These systems also require specialized manufacturing processes and materials, contributing to higher production costs. The increased cost of these advanced systems can make vehicles equipped with them less affordable for consumers, potentially limiting their widespread adoption, particularly in price-sensitive markets.

Complexity of Maintenance and Repair

Advanced transmission systems are more complex than traditional manual transmissions, requiring specialized knowledge and equipment for maintenance and repair. The complexity of these systems can lead to higher labor costs and longer repair times, which may deter consumers from purchasing vehicles equipped with such systems. The need for specialized technicians and parts can also strain service infrastructure, particularly in regions where such resources are limited.

Competition from Alternative Drivetrain Technologies

The rise of alternative drivetrain technologies, such as electric drivetrains, presents competition to traditional automotive transmission systems. Electric vehicles often utilize single-speed transmissions or direct drive systems, reducing the need for complex multi-speed transmissions. As the adoption of electric vehicles increases, the demand for traditional automotive transmission systems may decline, posing a challenge to manufacturers reliant on conventional transmission technologies.

Key Market Trends

Increased Demand for Fuel-Efficient Transmissions

As fuel efficiency becomes more critical due to rising fuel prices and environmental regulations, automakers are focusing on developing transmission systems that help improve fuel economy. Dual-clutch transmissions (DCTs) and continuously variable transmissions (CVTs) are being increasingly favored for their ability to optimize fuel usage. These systems enable smoother gear shifts and better power distribution, contributing to enhanced fuel efficiency and reducing emissions. This trend is expected to continue as both consumers and manufacturers prioritize fuel efficiency. In January 2024, Tata Motors introduced Automated Manual Transmission (AMT) for its Compressed Natural Gas (CNG) vehicles. The company has opened bookings for the Tiago and Tigor iCNG AMT models. With the integration of Twin Cylinder CNG technology to maximize boot space and the addition of automatic transmission, Tata Motors is establishing a new benchmark in the CNG vehicle segment.

Automation and Smart Transmission Systems

The integration of automation and smart features into transmission systems is gaining traction. Transmissions with adaptive shift control, which can adjust shifting patterns based on driving conditions, are becoming more common in modern vehicles. These systems allow for better performance in various driving scenarios, such as city traffic or long highway drives. As the automotive industry moves toward autonomous driving, the role of smart transmissions will become even more significant, allowing vehicles to operate more efficiently without driver input. For Instance, Renault's focus on low-cost hybrid technology, such as its 'dog clutch' E-Tech system, has led to a 55% rise in hybrid model sales, outpacing the general growth in the EU. This success underscores the growing consumer preference for fuel-efficient vehicles equipped with advanced transmission systems.

Lightweighting of Transmission Components

The push towards reducing vehicle weight is another key trend in the automotive transmission market. Manufacturers are incorporating lightweight materials such as aluminum, magnesium alloys, and carbon composites into transmission components to enhance fuel efficiency and vehicle performance. Lighter transmission systems help reduce overall vehicle weight, which, in turn, improves fuel economy and reduces carbon emissions. This trend is likely to accelerate as environmental regulations become stricter, pushing for more eco-friendly vehicle designs.

Segmental Insights

Transmission Type Insights

The global automotive transmission market is divided into several transmission types, including automatic, manual, dual clutch, and continuously variable transmissions (CVT). Each transmission type offers distinct advantages, catering to various consumer preferences and vehicle needs. Automatic transmissions are designed for ease of use, offering smoother shifting without requiring the driver to manually engage gears. This system is popular for passenger vehicles, especially in regions where urban driving conditions demand convenience and ease. Manual transmissions, on the other hand, provide more control to the driver over gear selection, appealing to consumers seeking a more engaging driving experience.

While manual transmissions have seen a decline in use due to the rise of automatic options, they still maintain popularity in certain vehicle categories, especially sports cars or in markets where cost efficiency is a priority. Dual-clutch transmissions (DCTs) combine the benefits of manual and automatic transmissions, offering faster gear shifts, improved performance, and enhanced fuel efficiency. This type is commonly found in higher-end sports cars and performance vehicles, though it is gradually being adopted in mainstream segments. Continuously variable transmissions (CVTs) are known for providing a smooth, stepless driving experience by offering an infinite number of gear ratios. CVTs are typically found in compact cars and hybrids, as they optimize fuel efficiency and provide a quieter, more seamless ride. The market's segmentation by transmission type allows manufacturers to tailor their offerings to different vehicle categories and customer needs, whether it’s for cost efficiency, performance, or comfort.

Download Free Sample Report

Regional Insights

North America

North America led the market with a strong focus on innovation and advanced automotive technologies. The widespread adoption of automatic transmissions remained a key factor, with a significant majority of vehicles equipped with this technology to enhance driving comfort and efficiency. The region also saw a substantial push towards electric vehicles, which prompted the development of specialized transmission systems tailored for electric drivetrains. Government incentives encouraging the adoption of cleaner vehicles further accelerated this transition. Investments in research and development were prominent, targeting improvements in transmission efficiency, durability, and integration with hybrid and electric powertrains. These efforts helped maintain North America’s position as a leader in transmission technology innovation.

Europe & CIS

Europe & CIS exhibited steady growth driven by stringent environmental regulations and increasing demand for fuel-efficient vehicles. Emission standards imposed by the European Union compelled manufacturers to develop transmissions that optimize fuel economy and reduce harmful emissions. Hybrid and electric vehicle adoption grew rapidly, especially in Western Europe, necessitating transmission systems that support these advanced powertrains. Technological advancements such as dual-clutch transmissions and continuously variable transmissions (CVTs) gained traction due to their ability to improve vehicle performance and reduce fuel consumption. Furthermore, investments in electrification and sustainability initiatives within the automotive sector reinforced Europe & CIS’s significant role in the transmission market.

Asia-Pacific 

Asia-Pacific emerged as a dynamic and fast-growing region, powered by the rapid expansion of automotive production in countries like China, India, and Japan. Growing middle-class populations and increasing urbanization drove higher vehicle demand, thereby increasing the need for diverse transmission solutions. The region witnessed a shift towards electric and hybrid vehicles as governments implemented policies to reduce pollution and promote green mobility. This shift created opportunities for the development and deployment of transmissions designed for electric powertrains. Infrastructure improvements and investment in local manufacturing capabilities further fueled market growth. The combination of high production volumes and evolving consumer preferences made Asia-Pacific a critical hub for transmission market expansion.

Recent Developments

• DENSO is enhancing its capabilities in electrification and advanced manufacturing. The company announced plans to build a new plant at its Zenmyo site in Nishio City, Japan, with construction set to begin in the first half of FY2025 and production slated to start in the first half of FY2028. The plant will focus on manufacturing electronic control units (ECUs) for electrification and advanced driver-assistance systems (ADAS), incorporating digital twin technology for efficient production processes.
• Hyundai Transys has garnered international acclaim for its innovative designs in future mobility. The company received two awards at the iF DESIGN AWARD 2024 for its UAM Cabin Concept and Future Mobility Concept Seat. The UAM Cabin Concept features flip-over seats, slim seat designs, privacy screens, and maximized luggage space, offering efficient organization within limited space. The Future Mobility Concept Seat utilizes recycled leather threads and regenerated PET yarns, embodying a sustainable approach to future mobility interiors.
• In May 2024, Nissan introduced the Nissan Magnite Geza CVT Special Edition, starting at INR 9.84 lakh. Drawing inspiration from Japanese theatre and its expressive musical themes, this special edition is tailored for music enthusiasts, featuring enhanced infotainment systems and a premium speaker setup for an elevated sensory experience.
• In April 2024, Dana Incorporated unveiled its innovative electro-mechanical, infinitely variable transmission (EMIVT) system. This advanced system boasts a multi-mode driveline design that integrates a power-split transmission developed in-house with high-voltage motors. It also features smart lubrication and actuation, a low-voltage motor with an inverter for pump operation, and a driveline controller powered by proprietary software.

Key Market Players

• ZF Friedrichshafen AG
• Hyundai Transys Inc.
• DENSO Corporation
• Allison Transmission Holdings Inc.
• JATCO Ltd.
• Aisin Corporation
• Magna International Inc.
• BorgWarner Inc.
• GKN Automotive Limited
• Valeo S.A.

Report Scope:

In this report, the Global Automotive Transmission Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•         Automotive Transmission Market, By Transmission Type:

o    Automatic

o    Manual

o    Dual Clutch

o    Continuously Variable

•         Automotive Transmission Market, By Vehicle Type:

o    Passenger Car

o    Light Commercial Vehicle

o    Heavy Commercial Vehicle

o    Electric Vehicle

o    Others

•         Automotive Transmission Market, By Fuel Type:

o    Gasoline

o    Diesel

•         Automotive Transmission Market, By Region:

o    North America

§  United States

§  Canada

§  Mexico

o    Europe & CIS

§  Germany

§  France

§  U.K.

§  Spain

§  Italy

o    Asia-Pacific

§  China

§  Japan

§  India

§  South Korea

o    Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

o    South America

§  Brazil

§  Argentina

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Automotive Transmission Market.

Available Customizations:

Global Automotive Transmission Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Global Automotive Transmission Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]