Automotive Transmission Market Analysis

Automotive Transmission Market Overview:

Global Automotive Transmission Market Size was valued at USD 62.46 Billion in 2023. The automotive transmission market industry is projected to grow from USD 66.24 Billion in 2024 to USD 99.93 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.27% during the forecast period (2024 - 2032). The market is also expected to be fueled by the increasing use of continuously variable gearbox (CVT) and dual-clutch gearbox (DCT) technologies in place of manual and automatic systems due to the shift in consumer demand for fuel-efficient products with improved performance as the key market driver enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Transmission Market Trends

Growing Demand for Automatic Automotive Transmission to Drive market growth

The rapid use of cutting-edge technologies in the automotive industry drives market CAGR. Traveler cars typically have automatic transmissions because of the growing need for comfort, more noticeable comfort, and ease of usage. Similarly, increasing traffic worldwide presses purchasers to acquire "Please pass on our automobiles with an automated system. Major auto manufacturers are investing much research to build technologies to satisfy the growing need for an eco-friendly and enjoyable driving experience. The growing popularity of robotization and better, technologically sophisticated cars benefits the market's growth.

Globally, the logistics sector is expanding due to rising urbanization, industrialization, and better road infrastructure. Additionally, the expansion of commercial vehicles is fueled by changes in the mining, construction, and IT sectors and an ever-increasing population. The AMT has two slopes. By pressing the gear lever to upshift and pulling it back to downshift, the driver may adjust the automatic or switch to the manual system as needed.

For instance, In February 2021, ZF announced a $200 million investment in North American commercial vehicle gearbox production. The ZF Powerline 8-speed automatic gearbox will be produced in Grey Court, South Carolina, at the company's state-of-the-art manufacturing facility starting in 2023. The Marysville, Michigan factory of ZF received an about USD 6 billion axle contract in July 2021 to provide beam axles and axle drives for pick-up trucks through 2027. Thus, driving the automotive transmission market revenue.

Automotive Transmission Market Segment Insights:

Automotive Transmission Type Insights

The global automotive transmission market segmentation, based on type, includes automatic, manual, automatic manual transmission, continuous variable transmission, and dual-clutch transmission. In terms of revenue, the Automatic Manual Transmission segment led the global automotive transmission market in 2022, and it is anticipated that it will continue to hold this position throughout the forecast period. The rising need for fuel-efficient gearbox systems propels the automated manual gearbox (AMT) market. A substantial market opportunity exists as driving technologies transition from mechanical to automated. As a result, automated manual transmissions (AMT) are frequently seen in vehicles.

On the other hand, the Continuously Variable Transmission (CVT) segment is estimated to be the most opportunistic segment during the forecast period.  With a continuously variable transmission (CVT), the maximum speed is possible at low engine RPMs, conserving fuel and enhancing the effectiveness of plows.

Automotive Transmission Vehicle Type Insights

Based on vehicle type, the global automotive transmission market segmentation includes passenger cars, LCVs, and HCV. In 2022, The passenger cars segment accounted for the largest revenue share. Fluctuating fuel prices and the transportation system influence the demand for passenger automobiles. As a result of the better economic outlook in the United States and several developing economies, including China and India, the demand for passenger automobiles is anticipated to increase globally.

The HCVs market is predicted to grow at a maximum CAGR. Sales of HCVs have been boosted by rising industry and infrastructure-building activity. Additionally, the demand for HCVs has increased due to the EU regulatory authorities and OEMs improving and enhancing the safety features of HCVs in response to the increasing number of HCVs in Europe.

Automotive Transmission Fuel Type Insights

The global automotive transmission market segmentation, based on Fuel type, includes gasoline, diesel, and others. In 2022, the gasoline segment accounted for the largest revenue share. Cars powered by petrol largely abide by pollution standards. They are more effective than their diesel cousins and emit less petrol. Throughout the projected period, it is predicted that the category will rise due to the growing demand for petrol in nations like the U.S., China, and India. The International Energy Agency (IEA) predicts that the demand for petrol will rise over the coming years as a result of the rapidly expanding economies in Asia, Central & South America, Africa, and the Middle East, which will account for roughly 70% of the increase in world demand in 2021.

Figure 1: Global Automotive Transmission Market by Vehicle Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Transmission Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific dominates the global automotive transmission market due to rising sales of electric cars in the area are predicted to help the industry flourish. The demand for commercial vehicles equipped with automated manual transmissions (AMT) is predicted to expand in the Asia-Pacific region, which will likely boost the automotive transmissions market.  Additionally, it is projected that rising automobile sales, particularly in nations like China, India, Japan, and South Korea, would favorably affect the expansion of the regional market throughout the projection period.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global Automotive Transmission Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America's automotive transmission market accounts for the second-largest market share due to rising demand for commercial vehicles, another key factor in the worldwide automotive gearbox system. Additionally, North America is a significant market for luxury and sports cars, and these segments are anticipated to grow steadily during the projection period. The market for automobile transmissions may grow due to North America's increased demand for aftermarket transmission systems. Further, the US automotive transmission market held the largest market share, and the Canadian automotive transmission market was the fastest-growing market in the European region.

The Europe Automotive Transmission Market is expected to grow at the fastest CAGR from 2023 to 2032. Due to the growing emphasis on hybrid cars and their good effects on fuel economy and emissions, Europe will likely experience substantial growth with the increased penetration of electric gearboxes.  Further, the German automotive transmission market held the largest market share, and the UK automotive transmission market was the fastest-growing market in the European region.

Automotive Transmission Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the automotive transmission market, grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The automotive transmission industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global automotive transmission industry to benefit clients and increase the market sector. In recent years, the automotive transmission industry has offered some of the most significant medical advantages. Major players in the automotive transmission market, including Allison Transmission Inc., Aisin Seiki Co. Ltd., Continental AG, BorgWarner Inc., Eaton Corporation PLC, GKN Plc, Jatco Ltd, Magna International Inc., ZF Friedrichshafen AG, Schaeffer AG, and others, are attempting to increase market demand by investing in research and development operations.

Allison Transmission Inc. is an American company with a rich history dating back to 1915 when James A. Allison founded the company. It is headquartered in Indianapolis, Indiana, USA. The company initially started as a provider of aircraft engines and race car components. However, it later shifted its focus to automatic transmissions for commercial vehicles. For instance, In April 2022, The off-highway component machining business of the Madras Export Processing Zone (MEPZ) and the off-highway transmission division of India-based AVTEC were both acquired by Allison Transmission. Allison's product line will be positioned for strategic expansion in the off-highway category in India and other international markets that require purpose-built products that provide higher performance, durability, reliability, and productivity.

Jatco Ltd, also known as Japan Automatic Transmission Co., Ltd, was established in 1969 as a joint venture between Nissan Motor Co., Ltd and Mazda Motor Corporation. The company's headquarters are located in Fuji City, Shizuoka, Japan. Jatco is a major player in the automotive transmission market and has expanded its operations globally, with production facilities and offices in various countries. The company is known for producing various automatic transmissions for passenger vehicles, including conventional automatic transmissions and continuously variable transmissions (CVT). For instance, in June 2021, For medium and large FWD vehicles, JATCO created a new continuously variable gearbox called "CVT-X" with improved environmental performance and maneuverability. More than 90% gearbox efficiency is reportedly attained, previously considered unattainable for a CVT.

Key Companies in the automotive transmission market include

• Allison Transmission Inc.


• Aisin Seiki Co. Ltd.


• Continental AG


• BorgWarner Inc.


• Eaton Corporation PLC


• GKN Plc


• Jatco Ltd.


• Magna International Inc


• ZF Friedrichshafen AG


• Schaeffer AG

Numerous model revisions have been made to the Kia Seltos for 2024 as of April 2024, most likely in response to market feedback since the facelifted model debuted in July 2023. The most significant modification is the addition of automatic transmission options to the HTK Plus mid-spec model, which reduces their price by over a lakh rupees. Additionally, Kia has redesigned the Seltos' color options and feature set to make it more alluring than ever before. Previously, the automatic option for Seltos was available beginning with the HTX model. The HTK Plus is the most popular trim level for the Seltos compact SUV, according to Kia. It is exclusive to the diesel-iMT, petrol-manual, diesel-iMT, and turbo-petrol iMT powertrains.

Tata Motors has hinted new iterations of the Tiago and Tigor CNG siblings in January 2024, potentially in the coming weeks, prior to their official introduction. Impending additions to the lineup will be automatic variants developed by the company. As the first CNG vehicles to be offered with an automatic transmission in India, the Tiago and Tigor CNGs are expected to be equipped with AMTs. This combination is anticipated to be available on the XT and XZ+ models. Presently, the Tata Tiago CNG and Tigor CNG are driven by a 1.2-liter, three-cylinder, NA gasoline engine that produces 85 horsepower and 113 Nm. This output is reduced to 72 horsepower and 95 Nm of torque in CNG mode. At present, this engine is exclusively mated with a five-speed manual transmission.

Automotive Transmission Market Segmentation:

Automotive Transmission Type Outlook

• Automatic


• Manual


• Automatic Manual Transmission


• Continuous Variable Transmission


• Dual Clutch Transmission

Automotive Transmission Vehicle Type Outlook

• Passenger Car


• LCV


• HCV

Automotive Transmission Vehicle Type Outlook

• Gasoline


• Diesel


• Others

Automotive Transmission Regional Outlook

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  Middle East
  
  


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  Africa
  
  


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  Latin America