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Automatic Transmission Market Size

Report ID: GMI12553
Published Date: Dec 2024
Report Format: PDF

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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.

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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.

Automatic Transmission Market Report Attributes
Report Attribute	Details
Base Year:	2024
Automatic Transmission Market Size in 2024:	USD 36.4 Billion
Forecast Period:	2025 - 2034
Forecast Period 2025 - 2034 CAGR:	5.9%
2034 Value Projection:	USD 64.1 Billion
Historical Data for:	2021 - 2024
No. of Pages:	180
Tables, Charts & Figures:	200
Segments covered:	Transmission, Fuel, Sales Channel, Vehicle
Growth Drivers:	Increasing demand for fuel efficiency and comfort Rising adoption of hybrid and electric vehicles Technological advancements in gear systems Consumer preference for automatic over manual transmissions in urban environments
Pitfalls & Challenges:	High cost of advanced automatic transmissions Complexity in maintenance and repair

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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.

Authors: Preeti Wadhwani, Satyam Jaiswal

Frequently Asked Questions (FAQ) :

The market size of automatic transmission reached USD 36.4 billion in 2024 and is set to grow at a 5.9% CAGR from 2025 to 2034, driven by increasing consumer demand for convenience, fuel efficiency, and enhanced driving comfort.

The passenger cars segment held 67% of the market share in 2024, with a significant shift towards automatic transmissions as consumers prioritize convenience, comfort, and ease of driving.

The Asia Pacific market accounted for 38% of the revenue share in 2024 and is poised to cross USD 25 billion by 2034, led by growing urbanization and an expanding middle class.

The key players in the industry include Aisin Seiki, Allison Transmission, BorgWarner, Eaton, Hyundai Transys, Jatco, Magna, Schaeffler, Voit, and ZF Friedrichshafen.