Automotive Automatic Transmission Market

Automotive Automatic Transmission Market Outlook (2024 to 2034)

Worldwide revenue from the automotive automatic transmission market is estimated at US$ 76.11 billion in 2024 and has been forecasted to increase at 3.6% CAGR to climb to US$ 122.81 billion by the end of 2034.

Manufacturers are focusing on weight reduction of vehicles due to new government regulations about safety, carbon emissions, and lightweight vehicles. Use of lightweight materials in transmission components-such as aluminum, magnesium, and high-strength steel composites-offers significant weight reductions without sacrificing strength or durability, and technological advancements play a major role in this aspect as well. Also, complex, lightweight transmission parts with optimized designs can be produced with additive manufacturing techniques such as 3D printing. Additional weight reduction is being achieved through improved gear designs and transmission architecture.

Key Market Growth Drivers

• Prominent manufacturers are continuously innovating their products to comply with stringent emission control regulations and bring up-gradation in the mechanics of automotive transmissions to improve the driver experience.
• With the rising shift toward electric and hybrid vehicles, the electrification of transmission systems is expected to gain pace. Effective transmission leads to the enhanced performance of automotive vehicles.
• With the advent of advanced automotive engines and the entrance of EVs and hybrids, vehicle owners are steadily shifting their preferences from manual to automatic transmissions. Faster and smooth gear-shifting abilities of automatic transmissions are driving their demand across the global automotive landscape.
• The manufacturing of automobile transmissions is expected to see rapid technological advancements, driving overall global automotive automatic transmission market growth.
• Due to a shift in consumer demand for more performance-oriented, fuel-efficient vehicles, the market is expected to be driven by the growing adoption of Dual Clutch Transmission (DCT) and Continuously Variable Transmission (CVT) technologies over manual and automatic systems.

Report Attribute	Detail
Automotive Automatic Transmission Market Size (2024E)	US$ 76.11 Billion
Forecasted Market Value (2034F)	US$ 122.81 Billion
Global Market Growth Rate (2024 to 2034)	3.6% CAGR
East Asia Market Share (2024E)	29.8%
North America Market Share (2024E)	35.7%
Passenger Vehicles Segment Value (2034F)	US$ 89.16 Billion
Revenue Generated by OEMs (2024E)	US$ 58.23 Billion
Key Companies Profiled	Honda Motor Co., Ltd.; Generac Holdings Inc.; Yamaha Motor Co. Ltd.; Hyundai Motor Company; Champion Power Equipment Inc.; Wuxi Kipor Power Co. Ltd.; Toshiba Corporation; Lifan Industry (Group) Co., Ltd; Briggs & Stratton Corporation; Subaru Corporation; Ryobi Limited; Aisin Corporation; ZF Friedrichshafen AG; Magna Iternational Inc.; JATCO Ltd.; Borgwarner Inc.; Eaton Corporation; Allison Transmissions; Vitesco Technologies; Schaeffler AG; GKN Automotive.

Why is There Increasing Preference for Automatic Transmissions in the Automobile Industry?

“Lightweight Automatic Transmissions Reducing CO2 Emissions”

Due to technological advancements improving fuel efficiency and performance, the automotive industry is witnessing a significant shift toward automatic transmissions. This trend is being further accelerated by rules and regulations by governments supporting lighter, more fuel-efficient cars and the incorporation of automatic transmissions with hybrid and electric drivetrains. There are huge growth prospects associated with the growing use of hybrid drives because of government incentives, environmental concerns, and the possibility of significant fuel savings and performance gains. The future of the automobile industry is bright, with potential synergies between autonomous driving systems and automatic transmissions, and emerging markets.

Lightweight transmissions improve fuel efficiency, lower operating costs, and also cut CO2 emissions from vehicles. Weight reduction improves vehicle performance through better acceleration, handling, and braking. Lighter components also reduce manufacturing costs due to fewer material requirements and a more simplified manufacturing process.

What are the Challenges Faced by Manufacturers of Automotive Automatic Transmissions?

“Premium Pricing Affecting Budget Constraint Customers”

High maintenance costs of advanced transmission systems are acting as a roadblock to market expansion. Due to their high complexity, continuously variable transmissions (CVTs) and dual-clutch transmissions (DCTs) are costly, which limits their appeal where cost is a key factor, especially for those looking to purchase smaller vehicles. The complexity of these systems increases maintenance costs because of the need for specialized mechanics.

Country-wise Insights

North America is set to capture a market share of 35.7% in 2024, followed by East Asia with a market share of 29.8%. Europe will see mixed recovery cycles due to the economic stimulus packages and local restrictions. With China, South Korea, and India being key automotive manufacturers, promising industrial guidelines are expected to stimulate the growth of the automotive automatic transmission market size in Asia during the forecast period.

What is a Key Trend in the United States Market for Automatic Transmissions?

“Enhanced Fuel Efficiency Benefits Booming Automatic Transmission Market”

Attribute	United States
Market Value (2024E)	US$ 17 Billion
Growth Rate (2024 to 2034)	5.5% CAGR
Projected Value (2034F)	US$ 29.18 Billion

The United States is estimated to account for 62.6% of the North American market share in 2024.

• According to CarMax, 96 percent of Americans drive automatic transmission vehicles.

Passenger car sales in the United States have continued to rise in the last few years, though the pandemic hit, and are likely to witness a further upsurge with rapidly rising sales of electric & hybrid vehicles and automatic cars.

Key factors blossoming driving market growth are enhanced fuel efficiency in the latest systems, superior driving experience in terms of smooth gear shifting, and swelling demand for low carbon footprint machinery. Besides, the soaring demand for hybrid vehicles and the emergence of CVT as a vital technology for upgraded fuel efficiency is set to open a pool of growth opportunities for manufacturers in the country.

Why is China Witnessing a Surge in the Market for Automotive Automatic Transmissions?

“Market Gaining Traction in Low- and Mid-Range Passenger Cars Segment”

Attribute	China
Market Value (2024E)	US$ 12.61 Billion
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 23.1 Billion

China is set to have a strong presence in the Asia Pacific region as it is the epicenter of automotive transmission system market growth; the country is set to account for 55.6% market share in East Asia by the end of 2034. The country is also set to have a strong presence in global expansion due to the increasing usage of automatic transmissions in most vehicles. The market is booming for low- and mid-range passenger cars in China and is likely to grow at a brisk rate over the coming years. The presence of key market players and the growing preference for a smooth driving experience by consumers is increasing the demand for automatic transmission cars across the country.

Category-wise Insights

The market for automotive transmission systems is categorized into passenger and commercial vehicles, of which, the former is set to account for a market share of 70.2% in 2024. In terms of sales, OEMs are expected to account for more than three-fourths of the market share in 2024, with the remaining being accounted for by aftermarket sales.

What Type of Vehicle Accounts for Higher Deployment of Automatic Transmissions?

“Passenger Vehicles Segment to Be Key Revenue Generator”Top of Form

Attribute	Passenger Vehicles
Segment Value (2024E)	US$ 53.43 Billion
Growth Rate (2024 to 2034)	5.3% CAGR
Projected Value (2034F)	US$ 89.16 Billion

The passenger cars segment is set to hold a key market share for automatic transmissions, primarily due to the growing demand for these vehicles in both developing and developed nations. The market is anticipated to witness strong growth in the light and heavy commercial vehicle segments as well due to the growing demand for vehicles in urban areas, which, in turn, will lead to an increase in transportation, mining, and logistics operations. Considering the environment, electric vehicle sales are predicted to see exponential growth in this market over the coming years due to their zero-emission and environment-friendly characteristics, which will also complement the demand growth for automatic transmissions.

Which Sales Channel Will Account for Higher Revenue Streams?

“OEMs Perceived as Reliable and Convenient”

Attribute	OEMs
Segment Value (2024E)	US$ 58.23 Billion
Growth Rate (2024 to 2034)	4.3% CAGR
Projected Value (2034F)	US$ 89.04 Billion

Original Equipment Manufacturers (OEMs) account for around two-thirds of the market share in 2024. One of the main factors for this is that all OEM parts fit perfectly with the vehicle; in certain circumstances, the installation of the parts is also guaranteed. To provide a better product at a competitive price, OEM companies-which compete with aftermarket businesses-are increasingly innovating their supply chains and product lines. OEMs, along with the aftermarket segment, are actively utilizing technologies such as 3D printing to streamline their supply chains and produce parts on demand.

While value-added resellers (VAR) typically sell to consumers or other end users, OEMs typically sell their products to other businesses. The relationship between an automaker and an auto parts manufacturer is among the simplest instances of the relationship between original equipment manufacturers and VARs.

Competitive Landscape

Key players in the automotive automatic transmission market are capitalizing on the rising preference for a smooth driving experience by consumers, increasing the demand for automatic transmission cars.

• Yamaha Motor Co., Ltd. declared in April 2021 that it had created an electric motor that achieved the highest class in output density for the industry. The intended application for this unit is in hyper-EV models and other high-output mobility products.
• Magna started manufacturing a new 7-speed, mild hybrid dual-clutch transverse transmission for the BMW Group in May 2022. Magna is the sole provider of mild hybrid transmissions for all front-transverse applications on the BMW Group platform. The CO2 emissions from an internal combustion engine are significantly reduced by this mild hybrid gearbox technology.

Fact.MR provides detailed information about the price points of leading manufacturers of automotive automatic transmissions positioned across the world, sales growth, production capacity, and technological advancements, in this updated market report.

Segmentation of Automotive Automatic Transmission Market Research

• By Type :

  • Automatic Transmission/Torque Converter
  • Automatic Manual Transmission
  • Continuous Variable Transmission
  • Dual Clutch Transmission

• By Fuel Type :

  • Gasoline [Petrol]
  • Diesel
  • Hybrid

• By Vehicle Type :

  • Passenger Vehicles
  • Commercial Vehicles

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa