Automotive Automatic Transmission Market Report 2026

The automotive automatic transmission market size has grown strongly in recent years. It will grow from $71.97 billion in 2025 to $77.16 billion in 2026 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to growth of passenger car production, consumer preference for driving comfort, expansion of urban traffic, adoption of torque converter systems, rise in automatic vehicle penetration.

The automotive automatic transmission market size is expected to see strong growth in the next few years. It will grow to $99.75 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to electrification of drivetrains, demand for fuel-efficient transmissions, integration with hybrid powertrains, software-driven transmission control, growth of autonomous driving. Major trends in the forecast period include shift toward multi-speed automatic transmissions, integration of electronic control units, rising adoption of cvt and dct systems, demand for improved fuel efficiency, growth in automatic transmissions in entry-level vehicles.

The rising shift towards electric vehicles is expected to drive the growth of the automotive automatic transmission market going forward. Electric and hybrid vehicles are automobiles powered by one or more electric motors, either exclusively or in combination with an internal combustion engine, offering reduced environmental impact and improved energy efficiency. The growing popularity of electric vehicles is fueled by factors such as environmental concerns, government incentives, advancements in battery technology, and increasing consumer demand for fuel-efficient transportation. Automotive automatic transmission systems are employed in electric vehicles to manage power delivery and optimize driving performance efficiently. For instance, in April 2023, according to the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, global electric car sales surged to 3.5 million units in 2023 compared to 2022, representing a significant 35% year-on-year increase. Therefore, the rising adoption of electric vehicles is driving the growth of the automotive automatic transmission market.

Major companies operating in the automotive automatic transmission market are increasingly integrating advanced technologies such as hybrid automated-manual transmission systems to improve vehicle efficiency, reduce emissions, and enhance overall driving performance. Hybrid automated-manual transmissions automate clutch and gear shifting while incorporating an electric motor into the powertrain to enable functions such as electric driving support, torque assistance, and regenerative braking for energy recovery. For instance, in June 2024, ZF, a Germany-based technology company specializing in driveline and electrified mobility systems, announced the TraXon 2 Hybrid, a hybrid automated-manual transmission designed for heavy commercial vehicles to support hybrid configurations and enable limited zero-emission operation under suitable driving conditions. It features a P2 electric motor positioned between the clutch and transmission, modular integration into existing vehicle platforms, and enhanced recuperation capability to improve energy efficiency. TraXon 2 Hybrid enhances fuel economy, supports emission reduction targets, improves automated driving performance, and provides fleet operators with a practical solution for transitioning toward electrified transportation.

In January 2024, Allison Transmission Holdings Inc., a US-based manufacturer of heavy-duty vehicle propulsion systems, partnered with SANY to supply advanced fully automatic transmissions for integration into next-generation mining vehicles. Through this collaboration, Allison Transmission and SANY aim to enhance vehicle performance and operational efficiency, supporting improved ease of operation, higher productivity, and reduced maintenance requirements, while providing scalable and durable drivetrain solutions for harsh mining environments. SANY Group Co. Ltd. is a China-based heavy-equipment company specializing in the development and manufacturing of mining and construction machinery.

Major companies operating in the automotive automatic transmission market report include ZF Friedrichshafen AG, Aisin Corporation, JATCO Ltd., Allison Transmission Holdings Inc., Hyundai Motor Company, Toyota Motor Corporation, Honda Motor Co. Ltd., Ford Motor Company, General Motors Company, Volkswagen AG, Stellantis N.V., BMW AG, Mercedes-Benz Group AG, Nissan Motor Co. Ltd., Renault Group, SAIC Motor Corporation Limited, Geely Automobile Holdings Ltd., Changan Automobile, Great Wall Motor Company Limited, Tata Motors Limited.

North America was the largest region in the automotive automatic transmission market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive automatic transmission market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive automatic transmission market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive automatic transmission market consists of sales of torque converters, planetary gear sets, hydraulic pumps, valve bodies, and electronic control units (ECU). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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