Automotive Transmission Market Report and Forecast 2024-2032

Market Outlook

According to this report, the automotive transmission market size reached a value of USD 138.01 billion in 2023. Aided by the increasing demand for fuel-efficient vehicles and the growing applications of advanced transmission systems in various vehicle segments, the market is projected to further grow at a CAGR of 6.3% between 2024 and 2032 to reach a value of USD 239.38 billion by 2032.

Automotive transmission is a crucial component of a vehicle's drivetrain, responsible for transmitting power from the engine to the wheels. It plays a vital role in determining the vehicle's performance, fuel efficiency, and driving experience. The increasing consumer preference for fuel-efficient and high-performance vehicles is driving the automotive transmission market growth. With the growing awareness of the environmental impact of fuel consumption, there has been a significant shift towards the adoption of advanced transmission systems that offer better fuel efficiency and reduced emissions. Additionally, the rising trend of electric and hybrid vehicles has further contributed to the increasing popularity of innovative transmission systems, such as continuously variable transmissions (CVTs) and dual-clutch transmissions (DCTs).

The expanding applications of advanced transmission systems in various vehicle segments also play a significant role in propelling the market. In passenger cars, advanced transmission systems are used to enhance driving comfort, fuel efficiency, and performance. In commercial vehicles, these systems help in improving payload capacity, durability, and overall operational efficiency. The growing demand for high-quality and durable transmission systems across these segments is boosting the market growth.

Moreover, advancements in transmission technology are driving innovation and development in the market. The introduction of new technologies, such as electronic control units (ECUs) and automated manual transmissions (AMTs), has enhanced the efficiency and performance of transmission systems. These advancements enable the development of high-performance transmissions with improved shifting capabilities, reduced weight, and enhanced fuel efficiency. The growing adoption of advanced transmission technologies is driving the market growth and consequently drives automotive transmission market share.

The growing focus on sustainability and environmental regulations is also contributing to the market growth. With the increasing emphasis on reducing carbon emissions and promoting sustainable practices, there is a significant demand for eco-friendly transmission systems. The adoption of electric and hybrid vehicles, which require specialised transmission systems, is gaining traction, helping in reducing the environmental footprint of the automotive sector. The rising demand for sustainable and eco-friendly transmission systems is driving the adoption of advanced transmission technologies.

The regulatory environment plays a crucial role in shaping the market. Governments and regulatory bodies across the world are actively supporting the development and deployment of advanced transmission systems. Various regulations and standards, such as the European Union’s Euro 6 emission standards and the United States Corporate Average Fuel Economy (CAFE) standards, are promoting the use of fuel-efficient and low-emission transmission systems. These regulatory efforts are providing a favourable environment for the growth of the market.

As per the automotive transmission market analysis, the automatic transmission segment holds a significant share of the market, driven by its widespread use in passenger cars and light commercial vehicles. Automatic transmissions offer enhanced driving comfort, ease of use, and better fuel efficiency, making them a popular choice among consumers.

Automatic transmissions provide smooth and seamless gear shifts, enhancing the driving experience. The growing demand for comfortable and convenient driving solutions is driving the popularity of automatic transmissions. Advanced automatic transmissions, such as CVTs and DCTs, offer better fuel efficiency compared to traditional manual transmissions. The increasing emphasis on fuel economy and reduced emissions is driving the adoption of automatic transmissions.

Market Segmentation

The market can be divided based on transmission type, fuel type, vehicle type, and region.

Market Breakup by Transmission Type

• Manual Transmission
• Automatic Transmission
• Continuously Variable Transmission (CVT)
• Semi-Automatic Transmission
• Others

Market Breakup by Fuel Type

• Petrol
• Diesel
• CNG

Market Breakup by Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in global automotive transmission market. some of the major players explored in the report are as follows:

• Magna International Inc.
• Aisin Corporation
• BorgWarner Inc.
• Continental AG
• Eaton Corporation plc
• Schaeffler AG
• ZF Friedrichshafen AG
• Allison Transmission, Inc.
• JATCO Ltd.
• Aichi Machine Industry Co., Ltd.
• Others