Automotive Transmission Market Playbook, Dynamics & Competitive Trends

Automotive Transmission Market Review, Key Business Drivers & Industry Forecast

The automotive transmission market size was valued at US$ 178.05 billion in 2025 and is expected to grow with a CAGR of 5.64% to reach around US$ 291.73 billion by 2034 during the forecast period.

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Introduction

The automotive transmission market is a prominent branch of the automotive industry. This industry deals in manufacturing and distribution of transmission systems for automotives. There are generally two types of transmission systems available in the industry consisting of manual transmission and automatic transmission. These transmission systems support different types of fuels comprising of gasoline, diesel and some others. It is designed for numerous vehicles such as passenger cars, LCVs, HCVs and some others. The growing sales of passenger cars in different parts of the world has contributed to the market expansion. This market is expected to rise significantly with the growth of the automotive components sector around the world.

• According to the Society of Indian Automobile Manufacturers, around 2711457 passenger cars were sold in India in 2020-21 that increased to 4219746 in 2023-24.

Highlights of the Automotive Transmission Market

• Asia Pacific held the largest share of the automotive transmission market due to the technological advancements in automotive sector.
• North America is expected to grow with a significant CAGR due to the rising sales of hybrid vehicles in U.S. and Canada.
• The automatic segment held the dominant share of the market due to the growing consumer preference for automatic transmissions.
• The gasoline segment led the industry due to the rapid adoption of gasoline-powered vehicles in developed nations.

Top Trends in Transmission Industry

• According to the International Organization of Motor Vehicle Manufacturers, around 543 226 commercial vehicles were manufactured in Brazil in 2023.
• According to the European Vehicle Market Statistics, around 10.6 million vehicles were registered in Europe in 2023.
• According to the Federal Reserve Bank of ST.Louis, around 17220 vehicles were sold in U.S. during December 2024.
• According to the CEIC, around 3,992,727 passenger cars were sold in Japan during December 2023.

Industry Leader Announcement

In June 2024, Aashish Bhatia, the President-Automotive Technologies, Schaeffler India made an announcement stating that, “Our Planetary Gear Systems are engineered to deliver optimal efficiency and smooth operation in hybrid vehicles. By supporting both series and parallel hybrid functionalities, as well as eCVT, we provide versatile solutions that cater to various hybrid configurations. This development marks a significant step in our journey towards promoting cleaner and greener automotive technologies.”

Competitive Landscape

The automotive transmission market is a fragmented industry with the presence of several dominant players. Some of the crucial market players in this industry consists of AISIN CORPORATION, Allison Transmission, Inc., BorgWarner Inc., Continental AG, Eaton, Magna International Inc. and some others. These market players are constantly engaged in research and development of advanced transmission systems for automotives and adopting strategies such as product launches, collaborations, partnerships and some others to sustain their position in this industry.

• According to the annual report of BORGWARNER, the revenue of drivetrain and battery systems segment in 2022 was US$ 3735 million in 2022 that increased to US$ 4348 million in 2023.

Market Segmentations

By Transmission

• Manual
• Automatic

By Fuel

• Gasoline
• Diesel
• Others

By Vehicle

• Passenger Cars
• LCVs
• HCVs

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
• Middle East and Africa (MEA)
  • UAE
  • KSA
  • South Africa