The automotive transmission market is poised for significant growth over the next seven years, driven by technological advancements, stringent emission norms, and increasing demand for fuel-efficient vehicles. This report provides an in-depth analysis of the market trends, segmentation, and growth prospects from 2025 to 2032.
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The global automotive transmission market is expected to reach $146.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.4% from 2025 to 2032. The market's growth is primarily driven by advancements in transmission technology, regulatory standards, and the integration of AI and machine learning in transmission systems.
Manual Transmission: Expected to hold the largest share of 48.0% in 2025 due to its higher fuel efficiency compared to automatic transmissions.
Automated Manual Transmission (AMT): Includes technologies like continuously variable transmissions (CVTs) and dual-clutch transmissions (DCTs), which offer improved fuel efficiency and performance.
Semi-automated Manual Transmission: Offers a balance between manual and automatic transmissions.
Petrol Engines: Projected to account for 56.0% of the market in 2025, with the highest CAGR during the forecast period. This is due to their compatibility with various automated transmissions, enhancing performance and fuel efficiency.
Diesel Engines: Though less prominent, still maintains a significant share due to its use in heavy-duty vehicles.
Passenger Cars: Expected to hold the largest share of 47.0% in 2025, driven by technological advancements and high production volumes.
Light Commercial Vehicles (LCVs): Growing demand due to increasing logistics and transportation needs.
Heavy Commercial Vehicles (HCVs): Includes trucks and buses, with a steady demand due to infrastructure development and industrial activities.
Original Equipment Manufacturers (OEMs): Expected to dominate the market due to the high demand for new vehicles equipped with advanced transmission systems.
Aftermarket: Growing due to the increasing need for replacement and upgrade of existing transmission systems.
Technological Advancements: Innovations in transmission systems like CVTs and DCTs improve fuel efficiency and performance, driving market growth.
Stringent Emission Norms: Governments worldwide are enforcing stricter regulations, pushing the demand for efficient and environmentally friendly vehicles.
Integration of AI and Machine Learning: Enhances transmission efficiency and performance, creating new market opportunities.
Complexity of Transmission Systems: Higher complexity can lead to increased costs and maintenance issues.
Fluctuations in Raw Material Prices: Affects production costs and profitability.
Supply Chain Disruptions: Can impact the timely delivery of components and finished products.
The Asia-Pacific region is expected to experience rapid growth due to the increasing adoption of advanced transmission technologies in both passenger and commercial vehicles9. Other regions, such as North America and Europe, will also see significant growth driven by technological advancements and regulatory pressures.
Key players in the automotive transmission market include Magna International Inc., STELLANTIS N.V., ZF Friedrichshafen AG, Continental AG, AISIN CORPORATION, JATCO Ltd, Eaton Corporation plc, BorgWarner Inc., Vitesco Technologies GmbH, and GKN Automotive Limited5. These companies are focusing on developing innovative transmission technologies and expanding their global presence.