Transmission Repair Market

Growing demand for electric vehicles is driving the market growth

Market CAGR for transmission repair is being driven by the growing demand for electric vehicles, which will boost the transmission repair market. The demand for electric vehicles is growing daily, as electric vehicles offer several benefits such as low harmful gases emission, low maintenance costs and others. Electric vehicle manufacturers will use hybrid transmission widely in hybrid electric vehicles (HEV). The hybrid transmission uses a combination of electric motor and combustion engine substantially, reducing the vehicle's fuel consumption, which will boost the transmission repair market revenue.

The growing penetration of electric vehicles worldwide will significantly impact the market growth. The high adoption of electric vehicles can be credited to governmental industries and help for improving the environmental grade to overcome crude oil dependence. Overall, the repair & maintenance expenses of battery electric vehicles are anticipated to be around 40% lesser than that of ICE vehicles. Industry players will gain a competitive edge by creating their products and operations more sustainable, such as restored solutions, and by training a technical understanding of electric vehicle elements drives the transmission repair market growth over the forecast period.

Moreover, the automotive industry is racing toward a new world with growing sustainability, changing consumer behavior, encompassing electric vehicles, connected cars, mobility fleet sharing, and improving lifestyles. Developing economies such as China, India, and Brazil are the most promising economies for the automotive sector. In February 2022, Tata Motors announced the sale of passenger vehicles rose by 47% in the domestic market. Also, in June 2021, passenger car registrations in the European Union expanded by 10% compared to last year. Furthermore, the demand for Special Utility Vehicles (SUVs) has recently surged due to the increasing global leisure and tour activities.

The aging vehicle fleet globally serves as a crucial driver for the Global Transmission Repair Market Industry. As vehicles age, the likelihood of transmission issues increases, necessitating repair services. In many regions, particularly in developed countries, the average age of vehicles on the road continues to rise, leading to a higher demand for transmission repairs. This trend is expected to persist, as older vehicles often require more frequent maintenance. The market's growth is further supported by the projected CAGR of 3.94% from 2025 to 2035, indicating a sustained demand for transmission repair services as the fleet ages.

The Global Transmission Repair Market Industry is projected to experience substantial growth over the coming years. With a market value of 181.1 USD Billion in 2024, it is expected to reach 277.1 USD Billion by 2035, reflecting a robust CAGR of 3.94% from 2025 to 2035. This growth trajectory indicates a strong demand for transmission repair services, driven by factors such as increasing vehicle ownership, technological advancements, and an aging vehicle fleet. The market's expansion is indicative of the essential role that transmission repair plays in vehicle maintenance and the overall automotive service industry.

The rise in global vehicle ownership is a primary driver of the Global Transmission Repair Market Industry. As more individuals acquire vehicles, the demand for maintenance and repair services, particularly for transmissions, escalates. In 2024, the market is projected to reach 181.1 USD Billion, reflecting the growing need for reliable transmission repair services. This trend is particularly evident in emerging economies where vehicle ownership rates are surging. The increasing complexity of modern vehicle transmissions further necessitates professional repair services, thereby enhancing the market's growth potential.

The expansion of automotive repair networks plays a vital role in the growth of the Global Transmission Repair Market Industry. As repair chains and franchises proliferate, they enhance accessibility to transmission repair services for consumers. This expansion is particularly beneficial in regions with limited access to specialized repair shops. Moreover, larger networks often provide standardized services, ensuring quality and reliability. The increasing number of repair facilities is expected to cater to the rising demand for transmission repairs, further driving market growth. The anticipated rise to 277.1 USD Billion by 2035 underscores the importance of these networks in meeting consumer needs.

There is a growing awareness among vehicle owners regarding the importance of regular maintenance, which positively impacts the Global Transmission Repair Market Industry. As consumers become more informed about the benefits of timely repairs, they are more likely to seek professional services for transmission issues. This trend is evident in various educational campaigns and initiatives aimed at promoting vehicle maintenance. The increasing emphasis on preventive maintenance is likely to drive demand for transmission repair services, contributing to the market's expansion. As a result, the market is anticipated to grow significantly, reaching 181.1 USD Billion in 2024.

Technological innovations in transmission systems significantly influence the Global Transmission Repair Market Industry. As manufacturers develop more sophisticated automatic and semi-automatic transmissions, the need for specialized repair services increases. These advancements often lead to more frequent repairs due to the complexity of the systems. For instance, the integration of electronic components in transmissions requires skilled technicians for repairs. This trend is expected to contribute to the market's growth, with projections indicating a rise to 277.1 USD Billion by 2035. Consequently, repair shops must adapt to these technological changes to remain competitive.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American transmission repair market will dominate this market due to the life expectancy of vehicles and the growing used cars and passenger vehicles market. The technological advancement and usage of more developed parts and equipment in commercial and passenger vehicles have attracted more demand for used vehicles in this region. Further, the US transmission repair market held the largest market share, and the Canadian transmission repair market was the fastest-growing market in the North American region.

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: Transmission Repair Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's transmission repair market accounts for the second-largest market share due to an increase in the sales of electric vehicles drives the market growth in this region. Further, the German transmission repair market held the largest market share, and the UK transmission repair market was the fastest-growing market in the European region.

The Asia-Pacific transmission repair market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the existence of large production bases in China and India. In March 2020, the China Association of Automobile Manufactures announced that vehicle production and sales volume reached 3.47 million and 3.67 million units. Moreover, China’s transmission repair market held the largest market share, and the Indian transmission repair market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the transmission repair 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. To expand and survive in a more competitive and rising market climate, the transmission repair industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Transmission Repair industry to benefit clients and increase the market sector. Major players in the transmission repair market, including Allison Transmission (US), ZF Friedrichshafen AG (Germany), BorgWarner Inc. (US), Schaeffler Technologies AG & Co. (Germany), AAMCO (US), Continental AG (Germany), and others, are attempting to increase market demand by investing in research and development operations.

ZF Friedrichshafen AG, a subsidiary of Zeppelin-Stiftung Co, is a technology provider to the automotive industry. It delivers automotive components and systems for several mobility solutions, ranging from motorcycles and construction equipment to trucks and yachts. The company's product offerings include steering and braking systems, occupant safety systems, front and rear axles, transmissions and powertrain modules, and drive components. ZF also delivers integrated solutions across the vehicle life cycle, such as spare parts, conversion and retrofitting repair, preventive overhaul, technical information and advice, training and expert marketing support and remanufacturing of used units.

The company has an operational existence in Europe, South America, Asia Pacific, and Africa; and has manufacturing, R&D and other facilities worldwide. In March 2020, ZF Friedrichshafen AG and Wolong Electric Group Co Ltd announced a joint venture on Electric components, which will increase the features of hybrid transmission and boost the hybrid transmission market.

Schaeffler AG is a developer, manufacturer, and supplier of precision products for diverse applications. The firm delivers a broad range of products, including rolling bearings, spherical plain bearings, plain bearings, mechatronics, linear products, and precision components. The company markets these products under INA, LuK and FAG. It provides maintenance of products and services besides digital services. Schaeffler also offers aftermarket services and products to the automotive, aerospace, and industrial sectors. In July 2019, Schaeffler announced its partnership with TruckOn, Continental's digital booking platform for commercial vehicle repairs and services.