Automotive Transmission Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Automotive Transmission Market in 2025 is assessed at USD 72.22 billion. The global Market size exceeded USD 68.44 billion in 2024 and is set to expand at a CAGR of over 6.9%, surpassing USD 162.94 billion revenue by 2037. Asia Pacific is on pace to reach largest share by 2037, driven by large production volumes of automotive parts and rising income levels in the region.
The growth of the market can primarily be attributed to the growing demand for vehicles worldwide. Furthermore, the global demand for cars is rising as a result of factors including population expansion, urbanization, and economic expansion. As populations and economies continue to grow, more people can afford and desire personal vehicles. Urbanization also drives demand for automobiles as people living in cities often rely on cars for transportation owing to limited public transportation options. In addition, factors such as increasing disposable income and a growing middle class in many countries are also contributing to the growing demand for automobiles. Particularly in emerging nations, these demographics are more inclined to own vehicles. The growing demand for automobiles also creates opportunities for the manufacturing and sales of cars, as well as the development of related industries such as parts suppliers, and maintenance and repair services. For instance, more than 82.5 million vehicles were sold worldwide in 2021.
Automotive transmission is what moves the power from the engine to the wheels. Transmissions are necessary for any motor vehicle to prevent the engine from destroying itself. Most car engines would shake themselves to pieces or overheat without a gearbox system. Furthermore, any car without a transmission would be unable to harness the engine’s speed, capping its maximum velocity. With rising sales of vehicles as well as cars, the demand for automotive transmission is on the rise amongst car users, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive transmission market during the forecast period. For instance, nearly 2 million total cars sold were in China in 2020.
Automotive Transmission Sector: Growth Drivers and Challenges
Growth Drivers
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Rising Demand for Gearboxes -A transmission allows you to harness your vehicle’s engine energy when necessary. Through applying proper gear as per the need of speed, the transmission allows you to benefit from more of your car's power, rotating the wheels more slowly or quickly. The rising sales of gearboxes are expected to boost the automotive transmission market in the projected period. It was found that the sales volume of gearboxes and their parts for motor cars, tractors, and other motor vehicles, in 2018, amounted to more than 7 million sold items in the United Kingdom.
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Increasing Number of Wheels – The use of transmissions is spreading as more wheels are seen on the roads across the world. For instance, there are an estimated 37 billion wheels worldwide as of October 2022.
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Upsurge in the Production of Light Vehicles – Most consumer cars fall under the light motor vehicle (LMV) category, as their unladen weight does not exceed more than 5-7 tons. It is also projected that 99 million light vehicles will be produced worldwide by 2025.
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Growing Volume of Autonomous Vehicles – AI-powered vehicles such as autonomous cars are gaining traction at a faster rate across the globe. These cars may be self-driving, and perform various other operations such as navigation. For instance, the ratio of autonomous vehicles is expected to account for around 12% of global car registrations by 2030.
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Rising Production of Truck Trailers – With strengthening supply chains, trucks are getting more powerful and fuel-efficient as they pull bigger trailers. The production of trailers was found to reach over 1 million units around the world in 2021.
Challenges
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Requires Huge Investment
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High Cost of Various Components Required in a Transmission System
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Volatility in Material Cost – A transmission assembly is made of various electric and mechanical components. Price surges in raw materials such as steel, silicone, and other metals hamper the production of these products, which may stagnate demand and drive losses
Automotive Transmission Market: Key Insights
| Report Attribute | Details |
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.9% |
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Base Year Market Size (2024) |
USD 68.44 billion |
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Forecast Year Market Size (2037) |
USD 162.94 billion |
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Regional Scope |
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Automotive Transmission Segmentation
Engine Type {Internal Combustion Engines (ICEs), Electric Engines}
The global automotive transmission market is segmented and analyzed for demand and supply by engine type segment into internal combustion engines (ICE) and electric engines. Amongst these segments, the electric engines segment is anticipated to garner the largest revenue by the end of 2037. Transmission systems in electric cars (EVs) are frequently significantly simpler than those in conventional internal combustion engine vehicles. There is no need for gears to boost torque at low speeds since, unlike internal combustion engines, electric motors can create their full torque from a complete stop. Owing to this, the majority of EVs only have a single-speed gearbox. An electric vehicle employs a gear reduction system, sometimes known as a gearbox, in place of a conventional transmission to convert the high-speed rotation of the electric motor to the slower revolution of the driving wheels. This gear reduction system can either be a direct drive system—integrated directly into the electric motor—or a separate component. Therefore, backed by the growing fleet of electric vehicles along with the surge in the sales of electric cars worldwide, the segment will boom. For instance, the electric car fleet is expected to become more than 300 million in 2030 with electric cars accounting for 60% of new car sales globally.
Vehicle Type (Passenger Vehicle, Light Commercial Vehicle, Heavy Commercial Vehicle)
The global automotive transmission market is also segmented and analyzed for demand and supply by vehicle type into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. Out of these segments, the light motor vehicle segment is projected to produce the most revenue by 2037 and garner the largest market share. Vehicles that are generally lighter and smaller in size and weight and are intended for personal transportation are referred to as light motor vehicles. Typically, this market sector consists of passenger automobiles and light trucks such as pickups, SUV, and vans. Light motor vehicles are preferred for urban use and personal transportation since they are typically thought to be more efficient and simpler to operate than bigger vehicles. Many people worldwide are buying cars with rising disposable incomes and choosing the safety and security that a car provides. Hence, it is projected that there will be over 255 million light motor vehicles in the U.S. alone by 2030.
Our in-depth analysis of the automotive transmission market includes the following segments:
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By Type |
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By Engine Type |
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By Vehicle Type |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
. Automotive Transmission Industry - Regional Synopsis
APAC Market Statistics
The Asia Pacific automotive transmission market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2037, backed by the large production volume of control parts for automobiles manufactured in the region, and a growing value of drive, transmission, and control parts of automatic transmission systems manufactured. For instance, in 2020, the overall production value of the automatic transmission system with many of its parts in Japan amounted to over USD 19 billion. Apart from that, rising income levels and the societal status of the Indian people are also expected to drive the market in the region. The popularity of EVs in the subcontinent is also booming, as it is projected that EVs will account for a third of the total vehicles on the road in India by 2030.
Companies Dominating the Automotive Transmission Landscape
- Allison Transmission, Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- ZF Friedrichshafen AG
- Aisin Corporation
- GKN PL
- Continental AG
- Magna International Inc.
- Borgwarner Inc.
- Jatco Ltd.
- Schaeffler Group
- Eaton Corporation plc
- Vitesco Technologies Group AG
Recent Developments
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Allison Transmission Inc. - announced that Isuzu has introduced its new medium-duty FVR 18.5T truck featuring the Allison 3000 Series 6-speed fully automatic transmission in Taiwan.
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ZF Friedrichshafen AG - unveiled EcoLife CoachLine, the second generation of its proven six-speed automatic transmission suitable for coach applications, whether operating in a city, inter-city, or even a challenging, steep mountain track.
Author Credits: Saima Khursheed
- Report ID: 4640
- Published Date: May 08, 2025
- Report Format: PDF, PPT
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Automotive Transmission Market Report Scope
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