Automatic Transmission Market

Automatic Transmission Market Size

The global automatic transmission market size was valued at USD 36.4 billion in 2024 and is projected to grow at a CAGR of 5.9% between 2025 and 2034. Due to the increasing concerns related to automotive comfort, economy, and driving pleasure, vehicles with automatic transmission are fast emerging to the market. The technological advancement of transmission and the stringent emission standards also support the creation of more fuel-efficient systems. This, along with the need for advanced transmission systems in hybrids and electric cars, is positively influencing the R&D as well as the implementation of automatic transmission.

As an example, in February 2024, Kia accelerated the launch of its first DCT (Dual Clutch Transmission) 7-gear box in newly designed 'GT Line' modifications of its most well-known model. This advancement is a significant improvement in transmission technology because it increases the effectiveness of the drivers and vehicle. Driven by the advances in the logistic and construction sector, there is a higher need for commercial vans which in turn is now aiding in the support of automatic transmission.

These systems improve the performance of the vehicle, decrease fatigue on drivers, and increase the role emissions savings from heavy-duty operations. More stringent regulatory requirements regarding the emissions produced and the level of operational efficiency required are forcing fleet operators to adopt sophisticated automatic transmission systems in their vehicles.

For example, in September 2024, ZF and Foton announced strengthening their strategic alliance concerning the development of new hybrid drive systems for commercial vehicles. From the scope of this work, ZF will design the new hybrid automated manual transmission system for heavy-duty trucks, which will improve both fuel and commercial vehicle performance.

Automatic Transmission Market Trends

The business collaboration of automobile manufacturers and automatic transmission builders focus on the development of new system to address the fuel economy requirements of new models. These partnerships place great emphasis on the incorporation of emerging technologies such as AI controllers or light hybrid engines. Consequently, these types of partnerships are enabling greater innovation, lowering costs, and streamlining the application of automatic transmissions into electric and autonomous vehicles to meet commercial and regulatory requirements.

In December 2023 Ford Motor Company and General Motors announced a partnership to design a new range of automatic transmissions. The purpose of the cooperation is to develop 9 and 10-speed versions as a top priority to achieve the expected results of the cars, SUVs, and trucks that they manufacture.

Advanced automatic transmissions are inherently expensive, which becomes a core problem for cost-sensitive users and new economies. More performant and efficient technologies such as dual clutch or continuously variable transmissions (CVTs), unfortunately, increase manufacturing and implementation costs. Furthermore, these systems are often more intricate, which means they can be more expensive to maintain and repair because of the additional tools and knowledge required.

This can create a barrier to widespread use in areas with inadequate skilled labor. In the long run, these issues may influence the perception and tastes of consumers, causing the adoption of much-needed fuel-efficient and easier-to-handle driving solutions to be much slower than is needed.

Automatic Transmission Market Analysis

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• Based on transmission, the market is segmented into automatic transmission, continuously variable transmission, dual-clutch transmission, and automated manual transmission. In 2024, the automatic transmission segment accounted for 46% of the automatic transmission market share and is expected to exceed USD 28 billion by 2034.
  
• Traditional automatic transmission's appeal is on the rise owing to the convenience and ease of use it brings with it. It provides superior shifting, reliable performance and comfort when in use, particularly in passenger cars. The latest efforts of vehicle manufacturers towards improving fuel efficiency and emission reduction have resulted to the introduction of new gear systems along with the advanced high performance AT systems.
  
• AT systems have undergone changes where new technology helps in improving vehicle shifting making it smarter and integrating features such as real time graphing that improve driving dynamics. Through these advanced AT systems, older systems have been replaced resulting to a more efficient system with more gears. There has also been a change in the manufacturing process where ATs are affordable making them easy to acquire and effective for mid-range cars.

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• The automatic transmission market can be segmented based on the sales channel and can be classified into passenger vehicles and commercial vehicles. In 2024, the segment of cars accounted for 67% of the total market. With enhanced comfort and ease of use, there has been a vast change in the use of automatic controlled vehicles, especially passenger cars.
  
• The rise of hybrid and electric vehicles has made fuel efficiency and a smoother driving experience more necessary and has led to advancements in dual-clutch and continuously variable transmissions also gaining traction as they have better performance and emit low levels of pollution.
  
• Also, the increasing popularity of high-end and luxurious cars is further propelling the use of advanced automatic transmission systems. The need for high-performance vehicles with advanced ease of operation driving gear shifts is increasing. As a response to these shifting norms about quality and efficiency, manufacturers are investing in more complex technologies, for instance, 8-speed auto and dual-clutch transmission.

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• In 2024, the Asia Pacific automatic transmission market held 38% revenue share and is expected to exceed USD 25.3 billion by 2034. The acceleration in transmission demand is driven by the surge in urbanization and growth of middle-class in China. In terms of fuel economy and ease, an automatic transmission needs to be improved, and this increases demand for cars with these features on sale. Further, there is more and more emphasis on electric and hybrid powered cars, which require new generation transmission systems.
  
• The North American automatic transmissions market continues to increase in size because consumers want ease and comfort while driving. Also, the modern times call for a wider use of clean automobiles that emit less exhaust gases because of the fuel efficient modern engines and sophisticated anti-pollution devices. Such a change is also facilitated by the growing use of electric and hybrid cars as they require new designs of transmissions.
  
• European markets are witnessing growing sales of automatic transmissions owing to people’s rising interest in automobiles that ultimately help them save fuel and reduce damage to the environment. Payment of stringent emissions limits aids in the improvement of the advanced technologies used in the production of automobile dual-clutch and continuous variable transmissions. Moreover, increasing sales of electric and hybrid-operated vehicles are encouraging further developments in the performance and environmentally friendly transmission system solutions.
  

Automatic Transmission Market Share

• Aisin Seiki, Allison Transmission, and ZF Friedrichshafen collectively held a substantial market share of 20% in the automatic transmission industry in 2024. ZF Friedrichshafen, Aisin Seiki and BorgWarner are the leaders of the industry owing to their recognized automatic and dual-clutch transmissions. Determined by the local utility vehicle market, ZF stands out as the winner in such areas as electric cars technology, while BorgWarner caters for the more active automotive sector.
  
• Aisin Seiki specializes in transmission systems for mass vehicle production. They are all able to meet consumer and government expectations because of the innovative advances made in the selling of their products.
  
• Allison Transmission, Eaton, Magna International, and Voith offer a broader range of products but are focusing more on the commercial segment, powertrains, and efficient energy usage. Allison focuses on medium and heavy-duty commercial vehicle transmissions, while Eaton has an array of automated manual transmissions. Magna and Voith are more focused on sustainable market solutions through advanced drivetrains, hybrid systems, and vehicle electrification.
  

Automatic Transmission Market Companies

Major players operating in the automatic transmission industry are:

• Aisin Seiki
• Allison Transmission
• BorgWarner
• Eaton
• Hyundai Transys
• Jatco
• Magna International
• Schaeffler
• Voith
• ZF Friedrichshafen
  

The automatic transmission market is driven by their customers whose focus is on more fuel efficiency and easy transmission operations. To achieve improved drivability and emissions reduction, market players are developing transmission technologies such as CVT, dual-clutch systems, and multi-speed automatic gearboxes.

Additionally, developing new compact and lightweight transmissions for hybrid and electric vehicles is gradually becoming popular among market players. Electronic control systems which facilitate seamless shifts, while also optimizing performance based on conditions, are improving. New consumer needs, market competition, and regulations constantly change, meaning development collaboration with car manufacturers is vital.

Automatic Transmission Industry News

• In October 2024, Magna International has unveils its Dual Clutch Transmission Eco (DCT Eco). The transmission system has been mainly devised to meet the needs of the European original equipment manufacturers in the efforts to aid the shift from internal combustion engines in favor of hybrid powertrains.
  
• In June 2024, Yamaha has announced the introduction of a Y-AMT semi-automatic gearbox to supplement the shifting process by eliminating the need for extensive functional movement and gear shifting. The Y AMT approach was developed for motorcycle enthusiasts: it replaces the regular clutch and gearshift levers with a lever mounted onto the handlebar to automate the shifting procedure. The system has Manual (MT) Mode – for those riders who wish to select the gears, and Automatic (AT) Mode, where gears are automatically selected by the system depending on the speed and the position of the throttle.
  

The automatic transmission market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) and volume (Units) from 2021 to 2034, for the following segments:

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Market, By Transmission

• Automatic transmission (AT)
• Continuously variable transmission (CVT)
• Dual-clutch transmission (DCT)
• Automated manual transmission (AMT)

Market, By Fuel

• Gasoline
• Diesel
• Hybrid

Market, By Sales Channel

• OEM
• Aftermarket

Market, By Vehicle

• Passenger cars
  • Hatchback
  • Sedan
  • SUV 
• Commercial vehicles
  • LCV
  • HCV

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa