Automotive Transmission Market Size, Share & Trends Analysis growing at a CAGR of 5.6% from 2025 to 2030
The global automotive transmission market size was valued at USD 168.50 billion in 2024 and is projected to grow at a CAGR of 5.6% from 2025 to 2030. This growth is attributable to advancements in automotive transmission technology, which include developing efficient and sophisticated systems such as Dual-Clutch Transmissions (DCT) and Continuously Variable Transmissions (CVT). These innovations enhance vehicle performance, fuel efficiency, and driving comfort, making modern vehicles more appealing to consumers. In addition, the increasing implementation of stringent emission regulations worldwide compels manufacturers to adopt advanced transmission technologies that can help reduce greenhouse gas emissions while maintaining optimal engine performance.
Request a free sample copy or view report summary: https://www.grandviewresearch.com/industry-analysis/automotive-transmission-market/request/rs1
Another significant factor influencing the automotive transmission market is consumers’ rising demand for automatic transmissions. With increasing urbanization and busy lifestyles, drivers prefer convenient, easy-to-use vehicles, especially in crowded cities. Automatic transmissions provide smoother gear shifts and eliminate the need for manual gear changes, making them more attractive to a broader audience. This trend is particularly evident in emerging markets where rising disposable incomes enable more consumers to purchase passenger vehicles equipped with automatic transmission systems.
Consequently, manufacturers focus on producing more automatic transmissions to meet this growing demand. Furthermore, the expansion of electric and hybrid vehicles is reshaping the automotive transmission landscape. As automakers shift toward electrification to comply with environmental standards and cater to changing consumer preferences, there is a notable increase in the development of specialized transmission systems designed for electric powertrains. These systems are essential for optimizing energy efficiency and performance in electric vehicles (EVs) and hybrids. The growing popularity of EVs and advancements in battery technology are expected to drive substantial growth in the automotive transmission industry as manufacturers seek innovative solutions that enhance vehicle capabilities while addressing sustainability concerns.
Transmission Insights
The automatic segment of the automotive transmission industry dominated the market in 2024, with a revenue share of 53.8%. This dominance can be attributed to the growing consumer preference for automatic transmissions due to their ease of use and convenience, especially in urban driving conditions. As more drivers seek comfort and efficiency, manufacturers increasingly focus on developing advanced automatic transmission technologies. In addition, integrating smart technologies in automatic systems will likely enhance performance and appeal to tech-savvy consumers. This trend is expected to continue, further reinforcing the dominance of the automatic segment in the market.
The manual segment of the automotive transmission industry is anticipated to experience a significant CAGR during the forecast period. This growth is attributable to the continued popularity of manual transmissions among driving enthusiasts who value control and engagement while driving. In addition, manual transmissions are often more cost-effective and can provide better fuel efficiency in certain applications. As a result, manufacturers continue to produce manual options to cater to this dedicated market segment. Despite the rise of automatics, the manual segment remains relevant due to its unique advantages and loyal customer base.
