Automotive Transmission Market Size, Share, and Trends 2025 to 2034

The global automotive transmission market size is calculated at USD 175.14 billion in 2025 and is forecasted to reach around USD 278.71 billion by 2034, accelerating at a CAGR of 5.31% from 2025 to 2034. The Asia Pacific automotive transmission market size surpassed USD 56.04 billion in 2025 and is expanding at a CAGR of 5.67% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.

  • Last Updated : 10 Jan 2025
  • Report Code : 1414
  • Category : Automotive

Automotive Transmission Market Size and Forecast 2025 to 2034

The global automotive transmission market size was accounted for USD 166.16 billion in 2024 and is anticipated to reach around USD 278.71 billion by 2034, growing at a CAGR of 5.31% from 2025 to 2034. The automotive transmission market is driven by the growing demand for fuel-efficient vehicles.

 

Automotive Transmission Market Size 2025 to 2034

Automotive Transmission Market Key Takeaways

  • Asia-Pacific dominated the global automotive transmission market with the largest market share of 31% in 2024.
  • North America is expected to expand at the fastest CAGR during the forecast period.
  • By vehicle type, the passenger vehicle segment has held the biggest market share of 66% in 2024.
  • By product, the electric vehicle segment is projected to grow at a remarkable CAGR during the projected period.

How is AI improving the automotive transmission? 

AI systems, like driver assistance, reduce human error and enhance reaction times, contributing to fewer accidents. It can locate potential hazards and take action quicker than a human driver. AI brings a more customized and intuitive driving experience, such as voice assistants acknowledging commands, advanced navigation systems forecasting the best routes, and AI-powered apps offering real-time traffic updates.  

AI makes driving more enjoyable and stress-free. It will continue to improve vehicle safety. These systems, from real-time traffic monitoring to predictive hazard alerts, will aid in reducing accidents and keep drivers safe. 

Advancements in AI are heading toward a future where cars are safer, greener, smarter, and designed to meet the latest advanced demands of drivers and the environment. 

Asia Pacific Automotive Transmission Market Size and Growth 2025 to 2034

The Asia Pacific automotive transmission market size was evaluated at USD 53.17 billion in 2024 and is predicted to be worth around USD 92.32 billion by 2034, rising at a CAGR of 5.67% from 2025 to 2034.

Asia Pacific Automotive Transmission Market Size 2025 To 2034

The Asia-Pacific dominated the global automotive transmission market with the largest market share of 31% in 2024, in terms of revenue. The market growth is projected to be aided by rising electric vehicles sales in the region. The automotive transmission market is expected to rise due to an increase in demand for automatic manual transmission (AMT) enabled commercial vehicles in Asia-Pacific.

Automotive Transmission Market Share, By Region, 2024 (%)

On the other hand, the North America is estimated to be the most opportunistic segment during the forecast period. The growing demand for commercial vehicles in North America is also major driver for the global automotive transmission system. Furthermore, North America is a key market for luxury vehicles and sports vehicles, and are expected to develop at a consistent rate during the forecast period. The North America have high demand for aftermarket transmission systems, which might boost the automotive transmission market.

Automotive Transmission Market Growth Factors

The automotive transmission market is fueled by a variety of benefits for users, including a smooth driving experience and rapid acceleration. It also had more usable power and uses less fuel than manual transmission systems. Furthermore, the advantages of automotive transmission include achieving maximum speed at low engine speeds, resulting in fuel savings, and efficient ploughing drive with accurate work at the power take off.

The automotive transmission market is being driven by an increase in the number of passenger vehicles and light weight commercial vehicles, as well as a growing need for fuel-efficient vehicles and a consumer desire for a comfortable driving experience. Furthermore, the automotive transmission market expansion has been aided by strict regulatory standards, particularly in developed regions such as North America and Europe.The expensive cost of enhanced transmission systems, on the other hand, is a major hurdle to market expansion.

The automotive transmission market expansion is projected to be aided by rapid technological developments in automotive transmission production. Moreover, owing to the shift in demand for zero-emission products with increased performance, the market is expected to be driven by the increasing adoption of Dual-clutch Transmission (DCT) and Continuously Variable Transmission (CVT) technologies over manual and automatic systems during the forecast period. In addition, the Asia-Pacific region is registering substantial growth in the countries such as India and China.

Market Scope

Report Coverage Details
Market Size in 2025 USD 175.14 Billion
Market Size by 2034 USD 278.71 Billion
Growth Rate from 2025 to 2034 CAGR of 5.31%
Largest Market Asia Pacific
Base Year 2024
Forecast Period 2025 to 2034
Segments Covered Engine ,Type, Vehicle Type
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Engine Insights

Based on the engine, the Internal Combustion (IC) engine segment dominated the global automotive transmission market in 2024, in terms of revenue. To improve fuel economy, internal combustion (IC) engines are now combined with hybrid electric vehicles. These engines are also used in conjunction with plug-in hybrid electric systems to broaden the range of plug-in electric vehicles. These advantages are expected to provide opportunities for the growth of internal combustion (IC) engine segment in the coming years.

On the other hand, the Electric Engine segment is estimated to be the most opportunistic segment during the forecast period.The market demand of electric engines has increased as a result of increased urbanization and increased demand for electric automobiles. The electric engine segment will benefit from the growth and expansion of the automobile sector, as well as increased personal disposable income. The electric engine segment expansion will be aided by rising global power consumption and the use of electrical equipment.

Type Insights

Based on thetype, the Automatic Manual Transmission (AMT) segment dominated the global automotive transmission market in 2024, in terms of revenue and is estimated to sustain its dominance during the forecast period.The automatic manual transmission (AMT) segment is driven by rising demand for fuel-efficient transmission system. The change from mechanical to automated driving technologies is creating huge market opportunity. Thus, the automatic manual transmission (AMT) is widely used in the market.

On the other hand, the Continuously Variable Transmission (CVT) segment is estimated to be the most opportunistic segment during the forecast period. Continuously Variable Transmission (CVT) allows for maximum speed at low engine speeds, saving fuel and allowing for more efficient ploughing. Continuously Variable Transmission (CVT) systems are favored by vehicle manufacturers around the world because they are light in weight, small in size, and have fewer moving components.

Vehicle Type Insights

The passenger vehicle segment has held the biggest market share of 66% in 2024. The demand for passenger vehicles is influenced by volatile fuel prices and road infrastructure. The improving economic outlook in developing nations is likely to boost the demand for passenger vehicles in the market.

Automotive Transmission Market Share, By Vehicle Type, 2024 (%)

On the other hand, the electric vehicle segment is estimated to be the most opportunistic segment during the forecast period. The technological advancements are resulting into surge in demand for automotive transmission systems during the forecast period.

Key Companies & Market Share Insights

The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting different marketing strategies, such as new product launch, investments, partnerships, and mergers & acquisitions. The companies are also spending on the development of improved products. Moreover, they are also focusing on competitive pricing.

The various developmental strategies such as business expansion, investments, new product launches, acquisition, partnerships, joint venture, and mergers fosters market growth and offers lucrative growth opportunities to the market players. 

Automotive Transmission Market Companies

Automotive Transmission Market Companies
  • Aisin Seiki Company Ltd.
  • GKN PLC
  • ZF Friedrischschafen AG
  • Continental AG
  • Magna International Inc.
  • Borgwarner Inc.
  • Eaton Corporation PLC
  • JATCO Ltd.
  • Schaeffler AG
  • Allison Transmission Inc.

Recent developments 

  • In October 2024, Schaeffler AG completed the merger with Vitesco Technologies Group AG, which was declared almost a year ago. The merger of Vitesco into Schaeffler took effect upon the final entry of the merger in Schaeffler's commercial register.
  • In August 2024, Citroen India started the new C3, which is now equipped with a 6-speed automatic transmission and advanced features. The latest Citroen C3 is available at all La Maison Citroen dealerships, with introductory prices starting at Rs 6.16 lakh.

Segments Covered in the Report

By Engine

By Type

  • Manual
  • Automatic
  • Automatic Manual Transmission (AMT)
  • Continuously Variable Transmission (CVT)
  • Dual-clutch Transmission (DCT)
  • Others

By Vehicle Type

  • Passenger Vehicle
  • Light Commercial Vehicle
  • Heavy Commercial Vehicle
  • Electric Vehicle

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World

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Frequently Asked Questions

The automotive transmission market size was reached at USD 166.16 billion in 2024 and is projected to surpass USD 278.71 billion by 2034.

The automotive transmission market is expanding growth at a CAGR of 5.31% from 2025 to 2034.

The automotive transmission market’s growth is proportional to the growth of the automotive sector because it is used in every vehicle. The demand for automotive transmission systems is expected to increase as global automotive production increases.

The major players operating in the automotive transmission market are Aisin Seiki Company Ltd., GKN PLC, ZF Friedrischschafen AG, Continental AG, Magna International Inc., Borgwarner Inc., Eaton Corporation PLC, JATCO Ltd., Schaeffler AG, Allison Transmission Inc.

The Asia-Pacific segment dominated the global automotive transmission market in 2024 and will lead the global automotive transmission market.

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