Industry: Tires, Components & Aftermarket (Automotive & Transportation)
Source: https://www.mordorintelligence.com/industry-reports/automotive-transmission-market
Scraped Date: 2026-09-17
| Market Metric | Details |
|---|---|
| Base Market Size | USD 163.39 billion |
| Projected Forecast (2031) | USD 163.39 billion |
| Growth Rate (CAGR) | 5.12 % |
| Largest Market Region | N/A |
| Fastest-Growing Region | N/A |
!Major players in Automotive Transmission industry
!Automotive Transmission Market Size
!Automotive Transmission Market Share by Transmission Type, 2025
!Automotive Transmission Market Share by Propulsion Technology, 2025
!Automotive Transmission Market Growth Rate by Region
!Automotive Transmission Market Concentration
!Icon
!Vijeron Intelligence on Facebook
!Vijeron Intelligence on Pinterest
!Vijeron Intelligence on Instagram
!GPTW
Market Overview
Study Period
|
2019 - 2031
|
Market Size (2026)
|
USD 163.39 Billion
|
Market Size (2031)
|
USD 209.73 Billion
|
Growth Rate (2026 - 2031)
|
5.12 %
|
Fastest Growing Market
|
South America
|
Largest Market
|
Asia-Pacific
|
Market Concentration
|
Medium
|
Major Players
*Disclaimer: Major Players sorted in no particular order
Image © Vijeron Intelligence. Reuse requires attribution under CC BY 4.0.
|
Automotive Transmission Market Analysis by Vijeron Intelligence
The automotive transmission market size is expected to grow from USD 155.04 billion in 2025 to USD 163.39 billion in 2026 and is forecast to reach USD 209.73 billion by 2031, growing at a 5.12% CAGR during the forecast period (2026-2031). Growth hinges on the rapid pivot from manual gearboxes toward software-defined, electrified drivelines, reinforced by tighter Corporate Average Fuel Economy standards in the United States and parallel mandates across the European Union and China. Automatic units retained demand leadership, yet dual-clutch systems are outpacing all rivals as performance-minded buyers seek sub-200-millisecond shifts without sacrificing fuel economy. Passenger-car domination continues, but light commercial fleets are electrifying more quickly as e-commerce logistics firms retrofit vans with automated manual transmissions to address driver shortages.
Key Report Takeaways
Market Trends and Insights
Drivers Impact Analysis of Automotive Transmission Market*
Driver |
(~) % Impact on CAGR Forecast |
Geographic Relevance |
Impact Timeline |
Rapid Growth of Hybrid and BEV E-axle
|
+1.5%
|
Global, with China and Europe leading adoption
|
Short term (≤ 2 years)
|
Tightening Global COâ‚‚ Regulations
|
+1.2%
|
Global, with EU and North America leading
|
Medium term (2-4 years)
|
Consumer Shift Toward Automatic and DCT
|
+0.8%
|
Asia-Pacific core, expanding to emerging markets
|
Long term (≥ 4 years)
|
Commercial-Vehicle Demand for AMT
|
+0.6%
|
North America and Europe primarily
|
Medium term (2-4 years)
|
Silicon-Carbide Inverter Cost Decline
|
+0.4%
|
Global, with early adoption in premium segments
|
Long term (≥ 4 years)
|
Software-Defined "shift-by-wire" Enabling OTA Feature Monetization
|
+0.3%
|
North America and Europe initially
|
Medium term (2-4 years)
|
Source: Vijeron Intelligence
|
Competitive Landscape
The top five suppliers accounted for a significant portion of the global passenger-car volume in 2025, indicating moderate concentration. JATCO focused on CVT leadership, while Hyundai Transys captured internal demand for six-speed and hybrid models.
Smaller innovators target white-space niches. Punch Powertrain’s dedicated hybrid gearbox enables 130 km/h electric cruising, making it an appealing option for European cities that are enforcing diesel bans. Schaeffler’s 100 kW P2+ module enables automakers to retrofit existing eight-speed cases, thereby shortening launch cycles by a year.
Technology leadership now revolves around software. Continental’s shift-by-wire unlocks subscription revenues and hardens cybersecurity. Magna filed a 2024 patent for an integrated coolant pathway that trims e-axle mass by 4.2 kilograms. Meanwhile, ZF’s ReLife and Allison’s ReTran aim to dominate remanufacturing as sustainability metrics rise. Competitive intensity thus pivots from volume share to IP depth and software monetization within the evolving automotive transmission market.
Automotive Transmission Industry Leaders
*
ZF Friedrichshafen AG
*
Aisin Corporation
*
Schaeffler AG
*
Magna International Inc.
*
JATCO Ltd.
*
*Disclaimer: Major Players sorted in no particular order
Image © Vijeron Intelligence. Reuse requires attribution under CC BY 4.0.
This market covers the value of automotive transmission systems supplied for on-road vehicles, including manual, automated, and automatic variants, and counted at the point of component and system supply into the vehicle ecosystem.
Scope exclusions: We exclude powertrain parts outside the transmission assembly (for example, complete engines, standalone differentials, and EV traction motors) and we also exclude maintenance and repair services.
*
By Transmission Type
*
Manual Transmission
*
Intelligent Manual Transmission (iMT)
*
Automated Manual Transmission (AMT)
*
Automatic Transmission (AT)
*
Dual-Clutch Transmission (DCT)
*
Continuously Variable Transmission (CVT)
*
Others (Planetary, 2-speed EV gearboxes etc.)
*
By Vehicle Type
*
Passenger Cars
*
Light Commercial Vehicles
*
Medium and Heavy Commercial Vehicles
*
Buses and Coaches
*
By Propulsion Technology
*
Internal-Combustion Engine (ICE)
*
Hybrid Electric Vehicle (HEV/PHEV)
*
Battery Electric Vehicle (BEV)
*
Fuel Cell Electric Vehicles (FCEV)
*
By Sales Channel
*
Original Equipment Manufacturer (OEM) Factory-Fit
*
Aftermarket/Remanufactured
*
By Geography
*
North America
*
United States
*
Canada
*
Rest of North America
*
South America
*
Brazil
*
Argentina
*
Rest of South America
*
Europe
*
Germany
*
United Kingdom
*
France
*
Italy
*
Spain
*
Russia
*
Rest of Europe
*
Asia-Pacific
*
China
*
Japan
*
India
*
South Korea
*
Rest of Asia-Pacific
*
Middle East and Africa
*
Turkey
*
United Arab Emirates
*
Saudi Arabia
*
South Africa
*
Rest of Middle East and Africa
The market is forecast to reach USD 209.73 billion by 2031, growing at a 5.12% CAGR.
Dual-clutch transmissions are set to register the quickest 5.89% CAGR, driven by their efficiency and rapid shift capability.
Regulations such as U.S. CAFE and Euro 7 push automakers toward eight-plus-speed automatics and hybrid-dedicated gearboxes that keep engines in peak efficiency ranges.
AMTs reduce driver training time, improve fuel economy up to 5%, and help fleets cope with chronic driver shortages.
Asia-Pacific leads with 43.67% of 2025 revenue, while South America is the fastest-growing at a 6.28% CAGR to 2031.
Shift-by-wire systems enable over-the-air feature unlocks, allowing OEMs to sell subscription-based driving modes without hardware changes.