Download free PDF
Automotive Transmission Market Size - By Transmission, By Component, By Vehicle, By Propulsion, By Sales Channel, Growth Forecast, 2026-2035
Report ID: GMI1445
|
Published Date: January 2026
|
Report Format: PDF
Download Free PDF
Authors: Preeti Wadhwani, Satyam Jaiswal
Premium Report Details
Base Year: 2025
Companies covered: 25
Tables & Figures: 185
Countries covered: 25
Pages: 250
Download Free PDF
Automotive Transmission Market
Get a free sample of this report
Get a free sample of this report Automotive Transmission Market
Is your requirement urgent? Please give us your business email
for a speedy delivery!

Automotive Transmission Market Size
The global automotive transmission market size was valued at USD 183.5 billion in 2025 and is set to expand from USD 191.3 billion in 2026 to USD 311.5 billion by 2035, growing at an 5.6% CAGR from 2026 to 2035, according to latest report published by Global Market Insights Inc.
Global frameworks such as US CAFE, EU CO2 and pollutant standards, and aligned national rules continue to ratchet efficiency requirements, directly increasing demand for higher gear counts, smarter shift strategies, and hybrid-capable transmissions that help automakers hit fleet targets without eroding drivability. The regulatory direction is clear for the decade, anchoring OEM technology roadmaps and supplier capex toward transmissions that unlock engine efficiency and electrified modes where feasible.
As car buyers prioritize ease and refinement in traffic-heavy environments, automatic, DCT, and CVT solutions replace manuals even in budget segments, while premium buyers seek imperceptible shift transitions and adaptive logic tuned to their driving styles. This preference translates into sustained AT/DCT platform wins and the steady erosion of manual take rates across regions formerly dominated by stick shifts.
9.4% market share
BEVs typically use single-speed reductions, but the sheer unit growth creates sizable demand for reduction gearsets, differentials, and integrated e-axles, with select high-performance EVs exploring multi-speed boxes for efficiency at high road speeds. The associated software, thermal, and NVH demands raise system complexity even as mechanical part counts fall, shifting value toward integrated modules and controls.
Income growth, urbanization, and road-network expansion in Asia, Latin America, and Africa add millions of first-time buyers annually, sustaining ICE-oriented transmission volumes while gradually increasing the mix of two-pedal solutions as customers trade up. That volume base underwrites continued investment and long production runs for mainstream transmissions through the 2030s.
In July 2024, AISIN announced a strategic partnership with BMW to manufacture next-generation e-axles for BMWโs upcoming electric vehicle platforms. The collaboration focuses on producing integrated electric drive units that combine motor, inverter, and reduction gearbox into a single compact system. This move reflects rising demand for high-efficiency electrified transmissions as automakers shift toward scalable EV architectures. The partnership demonstrates how electrification is reshaping the automotive transmission market, with suppliers transitioning from traditional gearboxes to integrated, software-enabled drivetrain systems that support performance, efficiency, and modular vehicle platforms.
Asia Pacific governments notably China and India use fiscal incentives, localization mandates, and industrial policy to attract transmission and e-axle manufacturing, which concentrates capacity and accelerates learning curves in the region. Combined with aggressive NEV targets and fast-growing domestic markets, these policies reinforce Asia Pacificโs status as the center of gravity for both conventional transmission and e-drive production scale-up.
Automotive Transmission Market Trends
Automated manual transmissions (AMTs) continue to scale in cost-sensitive passenger and commercial segments by automating clutch and shift operations on conventional manual gearboxes. This approach delivers much of the convenience of automatics at a significantly lower cost, making it especially attractive in emerging markets such as India. Regional differentiation is becoming more pronounced, with torque-converter automatics dominant in North America, DCTs and CVTs prevalent in Europe and Japan-aligned OEMs, and AMTs sustaining demand where affordability and simplicity are critical.
The electrification of urban delivery and vocational fleets is accelerating as battery costs decline and total cost of ownership increasingly favors electric powertrains for predictable duty cycles. Fleet operators and regulators are driving this shift through procurement commitments and emissions mandates, creating sustained demand for electrified commercial vehicles. Unlike passenger EVs, medium- and heavy-duty electric vehicles increasingly require two- or three-speed transmissions to balance launch torque, gradeability, and highway efficiency.
These multi-speed solutions enable smaller motors to operate efficiently across wider load ranges, improving overall system efficiency. Regional regulations further reinforce this trend, with zero-emission freight corridors and city-level mandates accelerating adoption. As a result, transmission suppliers are seeing new growth opportunities in electrified commercial drivetrains, even as conventional heavy-duty manuals and AMTs remain relevant in cost-sensitive or infrastructure-constrained markets.
Hybrid transmissions and integrated e-axle systems are becoming central to next-generation powertrains. Dedicated hybrid transmissions combine planetary gearsets, electric machines, and multi-clutch systems to enable electric-only, engine-only, and blended operating modes, delivering substantial fuel-efficiency gains in urban driving. At the same time, e-axles integrate motors, reduction gearing, differentials, and power electronics into compact modules that simplify vehicle integration and support scalable all-wheel-drive architectures.
For suppliers, this transition represents both disruption and opportunity. While demand for traditional multi-speed ICE transmissions gradually declines, growth in e-axles and hybrid systems creates higher-value content per vehicle. Success increasingly depends on expertise in power electronics, thermal management, and system integration, pushing transmission suppliers to invest in new capabilities or partnerships to remain competitive as electrification accelerates.
Automotive Transmission Market Analysis
Based on component, the automotive transmission market is divided into gear systems, clutch assemblies, torque converters, mechatronics & control units (TCU), axle & differential systems, and others. The gear system segment dominated the market accounting for around 33% in 2025 and is expected to grow at a CAGR of 5.5% from 2026 to 2035.
Based on transmission, the automotive transmission market is categorized into manual transmission (MT), automatic transmission (AT), continuously variable transmission (CVT), dual-clutch transmission (DCT) and automated manual transmission (AMT). Automatic Transmission (AT) segment dominates the market with around 52% share in 2025, and the segment is expected to grow at a CAGR of 6% between 2026 and 2035.
Based on vehicle, the automotive transmission market is divided into passenger vehicles and commercial vehicles. Passenger vehicles segment dominated the market and was valued at USD 130.8 billion in 2025.
Based on propulsion, the automotive transmission market is divided into ICE and electric vehicle. The ICE segment dominated the market and was valued at USD 151.4 billion in 2025.
China dominated Asia Pacific automotive transmission market with revenue of USD 35.1 billion in 2025.
US automotive transmission market will grow tremendously with CAGR of 4.6% between 2026 and 2035.
The automotive transmission market in Germany will experience robust growth during 2026-2035.
The automotive transmission market in Brazil will experience significant growth between 2026 & 2035.
The automotive transmission market in South Africa is expected to experience robust growth between 2026 & 2035.
Automotive Transmission Market Share
Automotive Transmission Market Companies
Major players operating in the automotive transmission industry include:
Automotive Transmission Industry News
The automotive transmission market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) and shipment (Units) from 2022 to 2035, for the following segments:
Click here to Buy Section of this Report
Market, By Transmission
Market, By Component
Market, By Vehicle
Market, By Propulsion
Market, By Sales Channel
The above information is provided for the following regions and countries: