Automotive Transmission Systems Market Size, Share, Analysis, Trends, Growth, 2032

Automotive Transmission Systems Industry Prospective:

The global automotive transmission systems market size was worth around USD 66.16 billion in 2023 and is predicted to grow to around USD 112.72 billion by 2032 with a compound annual growth rate (CAGR) of roughly 6.10% between 2024 and 2032.

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Automotive Transmission Systems Market: Overview

An automotive transmission system is a crucial part of an automobile. It acts as a bridge between the wheel and the vehicle’s engine which is critical for helping the automobile move in forward or reverse directions. Automotive transmission systems facilitate hassle-free control over the direction and speed of the vehicle thus allowing it to be used across all types of road terrains. Automotive transmission system technology has evolved to new heights hence also impacting the fuel efficiency, comfort, and the final performance of the vehicle. The most drastic change in automotive transmission system technology is the shift between manual and automatic solutions. The transmission technology transfers power generated from the engine to the wheels. Since the engine generates the power, it requires a connection that can send the power to the wheels that are responsible for taking the vehicle forward. The main components of an automotive transmission systems technology include a gearbox, clutch, differential, propeller shaft, and live axle with each component playing a specific role. Automotive transmission systems are classified into 4 categories manual transmission, automatic transmission, semi-automatic transmission, and continuously variable transmission.

Key Insights:

• As per the analysis shared by our research analyst, the global automotive transmission systems market is estimated to grow annually at a CAGR of around 6.10% over the forecast period (2024-2032)
• In terms of revenue, the global automotive transmission systems market size was valued at around USD 66.16 billion in 2023 and is projected to reach USD 112.72 billion , by 2032.
• The automotive transmission system market is projected to grow at a significant rate due to the growing number of consumers in the used cars segment
• Based on the fuel type, the gasoline segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the transmission type, the automatic segment is anticipated to command the largest market share
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period

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Automotive Transmission Systems Market: Growth Drivers

Growing consumers in the used cars segment will drive the market demand rate

The global automotive transmission systems market is expected to grow due to the rising number of consumers opting for used cars. These vehicles have been used by the first buyers and subsequently put back in the commercial market for sale. However, the demand for used cars survives on the quality of the vehicle and its overall performance output. The automotive transmission systems ensure that a vehicle delivers superior fuel and performance efficiency thus making used car sellers invest in ensuring that the vehicle being resold has optimally working automotive transmission systems. In case it needs some correction, the vehicle seller or the original owner is liable to make the changes before it is handed over to the new buyer. The user car market is growing at a steady pace since the industry is becoming more organized. The regulatory bodies are undertaking provisions to draft clear guidelines and regulations related to the buying and selling of used vehicles. For instance, the Indian regulatory body proposed a new law in 2022 to improve accountability in the used car sector. The law will promote the registration of all used car dealers and will also require that a notification be sent to the authorities once a deal is completed.

Growing sales of new construction vehicles will induce greater use of automotive transmission systems

The demand for construction vehicles is on the rise. Dump trucks, for instance, are one of the key segments of construction vehicles. These trucks along with other automobiles that have higher applications in the construction industry use automotive transmission systems. As the global construction & building (C&B) industry is witnessing a sharp rise driven by the escalating infrastructure and residential or commercial property development projects, the global automotive transmission systems market will also register a higher growth rate.

Automotive Transmission Systems Market: Restraints

Higher cost of novel automotive transmission systems will limit the industry’s expansion rate

The global industry for automotive transmission systems will be restricted due to the higher cost of more advanced automotive transmission systems. The novel versions of automotive transmission systems are made using sophisticated technology and years of research go into developing functional systems. The cost is especially high for automatic transmission technologies. Moreover, a large segment of vehicle owners continue to prefer manual transmission thus limiting the adoption of advanced versions.

Automotive Transmission Systems Market: Opportunities

Continuous improvement in automotive transmission technology will generate expansion opportunities

The global automotive transmission systems industry is projected to generate growth opportunities due to investments in the continuous improvement of transmission technology. The successful launch and adoption of next-generation vehicles are causing the market players to deliver exceptional products that meet customer expectations. For instance, features such as dual-clutch transmissions and multi-speed automatics are widely popular among the modern informed consumer. In January 2024, Schaeffler India showcased its latest offering in transmission systems and lifetime solutions along with fuel cell and clutch technology at the SIAT Expo held in the Pune region of India. The company is offering highly fuel-efficient clutch and transmission systems. In addition to this, the growing focus on swift transmission to electric and hybrid vehicles demands extensive development of supporting transmission systems. In October 2022, Magna International, a Canada-based producer of automobile parts, launched the 48-Volt hybrid dual-clutch transmission with the debut of the Fiat 500 X and Tipo and Jeep Renegade. The company is now responsible for supplying the parts to all additional hybrid models of the brands across European nations.

Surging development of autonomous vehicles will generate expansion possibilities for automotive transmission systems

The global automotive industry is rapidly changing in terms of solutions that are available for customers. An emerging segment of automotives is in the form of autonomous vehicles also known as self-driving cars. These vehicles do not rely on human intervention and utilize several advanced systems such as sensors, artificial intelligence (AI), global positioning systems, and high-performance computing for driving a vehicle. In June 2024, technology company Waabi announced an investment of USD 200 million for the development of driverless trucks. Similarly, June 2024 also witnessed the announcement of an initial public offering (IPO) in the USA of China’s autonomous driving company Momenta Global Limited. Such advancements in self-driving vehicles may create growth opportunities for the global automotive transmission systems market players.

Automotive Transmission Systems Market: Challenges

Strict regulations surrounding the industry will challenge the market expansion rate

The global industry for automotive transmission systems is projected to be challenged by the strict regulations that surround the development and application of transmission technologies. The automotive industry is one of the most regulated sectors with each country requiring compliance with specific guidelines related to fuel efficiency of automotive parts. Adhering to the regulations can lead to market growth complications.

Automotive Transmission Systems Market: Segmentation

The global automotive transmission systems market is segmented based on fuel type, vehicle type, transmission type, and region.

Based on the fuel type, the global automotive transmission systems industry divisions are diesel, gasoline, and others. In 2023, the highest growth was witnessed in the gasoline segment due to higher sales of gas-powered automotive private-use vehicles. The diesel variant is also a considerable revenue-generator driven by the higher sale of vehicles powered by diesel, especially in the form of heavy-duty vehicles such as trucks and buses. The demand for hybrid automotive transmission systems is growing at a steady pace. In 2023, the US encountered an increase of over 63% in the sale of hybrid vehicles.

Based on vehicle type, the automotive transmission system industry segments are light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and passenger cars.

Based on the transmission type, the global market is fragmented into manual and automatic. The highest revenue-generating segment in 2023 was automatic due to the growing popularity of gearless vehicles. These automotives are significantly different from manual transmission vehicles. They offer higher comfort and ease of driving especially in areas with higher traffic rates. The surging adoption of automotive vehicles across the globe is causing segmental revenue. In 2019, more than 17% of India’s automobile sales were in the form of automatic vehicles.

Automotive Transmission Systems Market: Report Scope

Automotive Transmission Systems Market: Regional Analysis

Asia-Pacific to deliver the most significant results during the projection period

The global automotive transmission systems market will be led by Asia-Pacific during the forecast period. In 2023, it dominated over 30% of the global market share. The reason for higher regional demand is the presence of robust automobile and ancillary parts manufacturing industries in countries such as India, China, Japan, and South Korea. China, for instance, is one of the world’s leading suppliers of affordable and luxury vehicles. Japan, on the other hand, is a highly technologically advanced manufacturer of innovative automobile solutions. In addition to this, the growing sale of electric vehicles especially driven by rising investments in EVs across China, Japan, and India will fuel the regional market expansion. In 2022, Subaru, a leading Japanese automobile company, announced an investment toward the construction of a new EV plant in Japan. In September 2023, Toyota launched a new breakthrough EV production line in its home country for the production of next-generation vehicles.

In addition to this, the growing number of regional consumers of automotives will also add to the regional revenue. The product diversification and expansion strategy adopted by players operating in Asia-Pacific to tap into the unexplored segments of the international market is expected to drive extensive growth in the region.

Automotive Transmission Systems Market: Competitive Analysis

The global automotive transmission systems market is led by players like:

• Getrag (part of Magna International)
• Schaeffler Group (LUK Automotive Systems)
• Continental AG
• Dana Incorporated
• ZF Friedrichshafen
• JATCO (part of Nissan Motor Corporation)
• Magna International
• BorgWarner Morse Systems
• GKN Automotive
• BorgWarner
• Eaton Corporation
• Allison Transmission
• Hyundai WIA
• Aisin Seiki
• Voith Group.

The global automotive transmission systems market is segmented as follows:

By Fuel Type

• Diesel
• Gasoline

By Vehicle Type

• Light Commercial Vehicles (LCVs)
• Heavy Commercial Vehicles (HCVs)
• Passenger Cars

By Transmission Type

• Manual
• Automatic

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa