Automotive Automatic Transmission Market Report 2025

This Automotive Automatic Transmission market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The automotive automatic transmission market size has grown strongly in recent years. It will grow from $67.44 billion in 2024 to $72.9 billion in 2025 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to increased integration of hybrid and plug-in hybrid systems, increasing demand for automatic transmission vehicles, shift towards fuel efficiency and emission reduction, growing preference for convenience and ease of driving, and expansion of the automotive industry globally.

The automotive automatic transmission market size is expected to see strong growth in the next few years. It will grow to $98.6 billion in 2029 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to the rising adoption of electric vehicles with automatic transmissions, integration of advanced driver-assistance systems (ADAS) in transmissions, regulatory push towards stricter emission standards, expansion of ride-sharing and autonomous vehicle fleets and Innovations in materials and manufacturing processes for lighter and more efficient transmissions. Major trends in the forecast period include a shift towards dual-clutch and continuously variable transmissions, technological advancements in transmission systems, development of predictive maintenance solutions for transmissions, emphasis on connectivity and communication within transmission systems, and growth of subscription-based transmission services and upgrades.

The automotive automatic transmission market is poised for growth, driven by the increasing adoption of electric vehicles in the foreseeable future. Electric and hybrid vehicles utilize one or more electric motors, either independently or in conjunction with internal combustion engines, offering benefits such as reduced environmental impact and enhanced energy efficiency. The growing preference for electric vehicles stems from concerns about the environment, government incentives, advancements in battery technology, and rising consumer demand for fuel-efficient options. Automotive automatic transmission systems play a crucial role in managing power delivery and improving driving performance efficiently in electric vehicles. For example, data from the International Energy Agency (IEA) in April 2023 revealed a significant increase in global electric car sales, reaching 3.5 million units compared to the previous year, marking a notable 35% year-on-year growth. Hence, the surge towards electric vehicles is propelling the growth of the automotive automatic transmission market.

Key players in the automotive automatic transmission market are concentrating on developing innovative systems, such as intelligent clutch heat mapping algorithms, to stay competitive. These algorithms, integrated into automotive automatic transmission systems, monitor and optimize clutch mechanisms' operation through sophisticated software. For instance, ZF India, a subsidiary of ZF Friedrichshafen AG, introduced the EcoTronic Mid Automated Manual Transmission (AMT) system for commercial vehicles in July 2022. This system enhances fleet operational efficiency by offering insights to improve driving performance, particularly in challenging terrains. The locally manufactured transmission supports various applications such as road transportation, passenger transport, and mining, ensuring ease of operation and reliability.

In April 2022, Allison Transmission, a US-based company specializing in commercial-duty automotive automatic transmissions, acquired AVTEC Ltd.'s off-highway transmission portfolio (HTP) and its Madras Export Processing Zone (MEPZ) off-highway component machining business (CMB) for an undisclosed amount. With this acquisition, Allison Transmission aims to enhance its capabilities in the off-highway segment by integrating AVTEC Ltd.'s high-performance transmission technology and utilizing the advanced component machining operations at MEPZ. This move is expected to improve its product offerings and strengthen its position in the global commercial-duty transmission market. AVTEC Ltd. is an India-based manufacturer of automotive automatic transmissions.

Major companies operating in the automotive automatic transmission market are Ford Motor Company, General Motors, Continental AG, ZF Friedrichshafen AG, Magna International Inc., Aisin Seiki Co. Ltd., Eaton Corporation PLC, Schaeffler AG, BorgWarner Inc., JTEKT Corporation, Dana Incorporated, NTN Corporation, GKN Automotive Limited, Voith Group, AVL List GmbH, Allison Transmission Inc., Ricardo plc, Tremec Corporation, Punch Powertrain NV, JATCO Ltd., Honda Transmission Manufacturing of America, GETRAG, Hyundai PowerTech Co. Ltd.

North America was the largest region in the automotive automatic transmission market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive automatic transmission market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive automatic transmission market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Automotive automatic transmission refers to a type of vehicle transmission that automatically adjusts the gear ratios as the vehicle moves, eliminating the need for manual gear shifting by the driver. This system enhances driving convenience and efficiency through the use of hydraulics, sensors, and electronic controls.

The primary types of automotive automatic transmission include automatic transmission, automated manual transmission, dual clutch transmission, and continuously variable transmission. Automatic transmission is a gearbox that automatically adjusts gear ratios while driving, providing a smoother and more convenient driving experience. These transmissions can accommodate various fuel types such as gasoline, diesel, and hybrid, and are utilized in vehicles ranging from passenger cars to light and heavy commercial vehicles.

The automotive automatic transmission market research report is one of a series of new reports that provides automotive automatic transmission market statistics, including the automotive automatic transmission industry global market size, regional shares, competitors with the automotive automatic transmission market share, detailed automotive automatic transmission market segments, market trends, and opportunities, and any further data you may need to thrive in the automotive automatic transmission industry. These automotive automatic transmission market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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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