Automatic Transmission Market Size - By Transmission, By Fuel, By Sales Channel, By Vehicle, By Industry Vertical, Analysis, Share, Growth Forecast, 2025 - 2034

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. The increasing consumer demand for convenience, fuel efficiency, and enhanced driving comfort is driving the shift towards automatic transmissions. Stringent emission standards are pushing automakers to adopt advanced transmission technologies for better fuel economy. Additionally, the growing popularity of hybrid and electric vehicles, which require specialized transmission systems, is further fuelling innovation and adoption of automatic transmission solutions.
 

For instance, In February 2024, Kia introduced its first seven-speed Dual Clutch Transmission (DCT) gearbox in the new "GT Line" versions of its popular models. This launch represents a significant advancement in transmission technology, offering enhanced performance and improved efficiency for drivers.
 

The rising demand for commercial vehicles, driven by expanding logistics and construction industries, is boosting the adoption of automatic transmissions. These systems enhance vehicle performance, reduce driver fatigue, and improve fuel efficiency in heavy-duty operations. Stricter emission regulations and the need for increased operational efficiency are encouraging fleet operators to invest in advanced automatic transmission technologies for their vehicles.
 

For instance, In September 2024, ZF and Foton announced an expansion of their strategic partnership to introduce innovative hybrid drive systems for commercial vehicles. As part of the collaboration, ZF will develop a new hybrid automated manual transmission system specifically designed for heavy-duty trucks, enhancing fuel efficiency and performance in the commercial vehicle sector.
 

Automatic Transmission Market Trends

Collaboration between automakers and transmission manufacturers is intensifying to develop advanced, fuel-efficient systems tailored to modern vehicles. Partnerships focus on integrating cutting-edge technologies like AI-driven control systems, hybrid compatibility, and lightweight materials. Such alliances are accelerating innovation, reducing production costs, and ensuring seamless integration of automatic transmissions in electric and autonomous vehicles, meeting evolving consumer and regulatory demands.
 

For instance, In December 2023, Ford Motor and General Motors announced a joint-development agreement to create a new series of advanced automatic transmissions. The collaboration focuses on developing 9 and 10 speed variants designed to enhance vehicle performance and fuel efficiency across their respective lineups of cars, SUVs, and trucks.
 

The high cost of advanced automatic transmissions poses a significant challenge, particularly for budget-conscious consumers and emerging markets. Technologies like dual-clutch and continuously variable transmissions (CVTs), while offering superior performance and efficiency, come with increased production and integration costs. Additionally, the complexity of these systems leads to higher maintenance and repair expenses, requiring specialized tools and expertise. This can deter adoption, especially in regions with limited access to skilled technicians. Over time, these factors may impact consumer confidence and preference, potentially slowing the transition to newer transmission technologies despite their benefits in fuel efficiency and driving experience.
 

Automatic Transmission Market Analysis

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 market share and is expected to exceed USD 28 billion by 2034, driven by consumer preference for convenience and ease of driving. ATs are favoured for their smooth shifting, reliability, and comfort, especially in passenger cars. As automakers focus on improving fuel efficiency and reducing emissions, newer, more advanced AT systems with multiple gears and better performance are gaining popularity.
 

Moreover, advancements in automatic transmission technology are enhancing performance, with more gears being added to increase fuel efficiency and provide smoother acceleration. The integration of smart features, such as adaptive shifting and real-time monitoring, is improving driving dynamics. ATs are also becoming more cost-effective due to manufacturing improvements, making them increasingly accessible in mid-range vehicles.
 

Based on the sales channel, the automatic transmission market is divided into passenger cars, and commercial vehicles. The passenger cars segment held 67% of the market share in 2024. In passenger cars, there is a significant shift towards automatic transmissions as consumers prioritize convenience, comfort, and ease of driving. Fuel efficiency and smoother driving experiences are key drivers, particularly with the rise of hybrid and electric vehicles. Advancements in dual-clutch and continuously variable transmissions are also gaining traction, offering better performance and lower emissions for eco-conscious buyers.
 

Furthermore, the growing demand for premium and luxury vehicles is further accelerating the adoption of advanced automatic transmission systems. Consumers are increasingly seeking high-performance options that offer seamless gear shifts and enhanced driving experiences. Manufacturers are focusing on integrating more sophisticated technologies, such as 8-speed automatic and dual-clutch transmissions, to meet the evolving expectations of quality and efficiency.
 

Asia Pacific automatic transmission market accounted for 38% of the revenue share in 2024 and is poised to cross USD 25 billion by 2034, driven by growing urbanization and an expanding middle class. Consumers increasingly prefer vehicles with enhanced fuel efficiency and comfort, boosting the adoption of automatic transmissions, especially in passenger cars. Additionally, there is a strong shift toward electric and hybrid vehicles, which require advanced transmission technologies.
 

In North America, the shift toward automatic transmissions continues to grow, fuelled by consumer demand for convenience and improved driving comfort. There is also an increasing preference for fuel-efficient vehicles and advanced drivetrains, particularly considering stricter emissions regulations. The market is further influenced by the rise of electric and hybrid vehicles, requiring new transmission technologies.
 

In Europe, the demand for automatic transmissions is expanding, driven by a shift towards fuel-efficient and environmentally friendly vehicles. Stringent emission regulations encourage automakers to adopt advanced transmission technologies, such as dual-clutch and continuously variable transmissions. Additionally, the growing popularity of electric and hybrid vehicles is pushing innovation in transmission systems, with a focus on performance and sustainability.
 

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, BorgWarner, and Aisin Seiki dominate the market with strong offerings in automatic and dual-clutch transmissions. ZF leads in performance-focused transmission solutions, BorgWarner emphasizes hybrid and electric vehicle components, while Aisin Seiki excels in mass-market vehicle transmissions. These companies leverage innovative technologies to meet evolving consumer demands and regulatory standards.
 

Allison Transmission, Eaton, Magna International, and Voith provide diverse solutions with a focus on commercial vehicles, powertrains, and efficiency. Allison specializes in heavy-duty and medium-duty transmissions, Eaton offers a range of automated manual systems, while Magna and Voith focus on advanced drivetrains, hybrid technology, and vehicle electrification, all pushing for sustainable solutions across various markets.
 

Automatic Transmission Market Companies

Major players operating in the automatic transmission industry are:

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

Automatic Transmission Industry News

• In October 2024, Magna International introduced its Dual Clutch Transmission Eco (DCT Eco), marking a significant advancement in automotive powertrain technology. This innovative transmission system is designed to support the transition from internal combustion engines (ICE) to hybrid powertrains, catering specifically to the needs of European original equipment manufacturers (OEMs).
   
• In June 2024, Yamaha officially launched its new Y-AMT, a semi-automatic gearbox designed to enhance riding experience by simplifying gear shifting. The Y-AMT system replaces traditional clutch and gearshift levers with a handlebar-mounted lever, allowing riders to shift gears more easily. The system offers two operational modes, Manual (MT) Mode, where riders manually shift gears, and Automatic (AT) Mode, where the system selects gears based on speed and throttle position for a more relaxed ride.
   

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