Automotive Automatic Transmission Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 7.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Automotive Automatic Transmission Market Analysis
The automotive automatic transmission market studied was valued at USD 101.65 billion in 2021. It is expected to reach a value of USD 155.15 billion by 2027 while registering a CAGR of 7% during the forecast period.
With the COVID-19 pandemic affecting the automotive industry, the Transmission Market saw a dip in market share due to low or almost zero automotive sales or new requirements. Although the United States has around 90% of the vehicles running with automatic transmission, mileage-sensitive and huge-scale markets like India are yet to gradually transform into automatic transmission systems. The growing trend towards opting the automatic transmission by drivers worldwide is set to help the industry service the pandemic and come out with good numbers post Covid-19.
The automotive transmission system has many advantages, apart from performing the simple purpose of transferring an engine's power to the wheels. The demand for automotive automatic transmission vehicles has been growing over the past three years, especially in developing countries, such as India and China, due to heavy traffic, congestion, and overcrowded streets.
The major types of automatic transmission systems used in the vehicles are automated manual, continuously variable transmission, and dual-clutch transmission, among others.
According to General Motors, with the growing environmental concerns and strict fuel economy norms, the available manual transmission system cars may decline, in turn, resulting in the rise in demand for automatic transmission systems. Governments in the region are also trying to promote the sales of alternative fuel vehicles through incentives and tax deductions, and fuel-efficient vehicles, which is expected to propel the demand for automotive automatic transmission in the region.
Automotive Automatic Transmission Market Trends
This section covers the major market trends shaping the Automotive Automatic Transmission Market according to our research experts:
OEMs Focusing on Developing Advanced Automatic Transmission
The German automatic transmission supplier ZF developed a new 8-speed automatic transmission. The company mainly focused on improving fuel efficiency by using lightweight technology.
The new gear set design consists of four planetary gear sets and five shift elements that help minimize drag and improve transmission efficiency. The optional hydraulic impulse oil storage (HIS) offers a start/stop function, which can increase fuel savings.
This new automatic transmission is hybrid compatible and can be used across all AWD dive concepts, which include AWD center differential integrated, integrated AWD system, and hang-on AWD.
On average, ZF manufactures 3.5 million units of its 8-speed automatic transmission for Aston Martin, FCA, JLR, and the Volkswagen group yearly. In 2019, the company received a billion-dollar contract from BMW. ZF is expected to supply its latest version of this 8-speed automatic transmission for a BMW series of models that may be launched in 2022.
Additionally, as the logistics industry is gaining back its pace, the demand for transmission in the commercial sector is expected to increase. Hence, in February 2021, ZF announced a USD 200 million investment in commercial vehicle transmission manufacturing to cater to the increased demand in North America. Beginning in 2023, ZF will manufacture its PowerLine 8-speed automatic transmission in Gray Court, South Carolina, creating 500 jobs in the United States.
Furthermore, ZF is also testing the possibilities of starting the production of this technology for China and the United States, where the shares of automatic passenger cars are high.
Asia-Pacific is Expected to Witness the Fastest Growth Rate
Asia-Pacific is expected to witness the fastest growth rate during the forecast period. In the Asia-Pacific region, countries such as China, India, and the ASEAN countries, are anticipated to witness high demand for automatic cars, especially in India, with the continually growing vehicle population.
In India, the demand for automatic transmission cars and SUVs has significantly increased over the past three years.
Automatic vehicle sales have risen from a meager 1.4% in 2011 to 17.3% in 2019. This increase is primarily due to increased traffic and exhausting driving conditions in metropolitan regions, but manual transmissions are still the preferred mode of transportation in rural India. Maruti Suzuki was India's largest producer of automatic cars, with sales accounting for over 132,000 units in 2020.
Almost 80% of the cars sold in India are under the price range of 12 lakhs. Within this price range, Maruti Suzuki's Vitara Brezza, Dzire, Baleno, Hyundai Verna, and Honda City are the top-selling automatic transmission cars in the country.
Although most Indian buyers prefer a manual SUV, the demand for automatic transmission SUVs has increased over the past two years. Most of the premium SUV models available in the Indian market, such as Skoda Kodiaq, Volkswagen Tiguan, Audi Q-Series, BMW X-Series, etc., have an automatic transmission as a standard system.
In the light of the worsening road conditions, advancements in technology, growing preference toward economy and convenience, and rising demand for fuel-efficient cars, the demand for automatic transmission vehicles in India are expected to grow rapidly during the forecast period.
Although the market is running slow, the Dual Clutch Automatic Gearbox is gaining popularity because of its high-speed gearshift rate, which is very useful and is employed in most performance cars and supercars. Hence, many car makers like Hyundai, Skoda, Volkswagen, Tata, and others have started incorporating DCT technology.
In March 2022, Tata Motors launched its premium hatchback with a dual-clutch transmission called the DCA in India.
Automotive Automatic Transmission Industry Overview
The automotive automatic transmission market is fairly fragmented, with players, like ZF Friedrichshafen AG, Schaeffler AG, Hyundai Transys Inc., Magna International Inc., JATCO Ltd, and others. Transmission system manufacturers are motivated to provide cost-effective solutions without compromising the vehicle's performance. Dealers are focusing on globalization and innovating products to obey the emission norms. For this reason, dealers are working with native partners, and OEMs are focusing on developing new technologies to save manufacturing costs while offering effective technologies in the market.
For instance, in May 2022, Magna commences production of a new 7-speed, mild hybrid dual-clutch transverse transmission for BMW Group. Magna is the only mild hybrid transmission supplier for the BMW Group platform for all front-transverse applications. This mild hybrid gearbox tech cuts CO2 emissions from an internal combustion engine by a significant amount.
Automotive Automatic Transmission Market Leaders
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ZF Friedrichshafen AG
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Schaeffler AG
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Hyundai Transys Inc.
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JATCO Ltd
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Magna International Inc.
*Disclaimer: Major Players sorted in no particular order
Automotive Automatic Transmission Market News
In September 2021, ZF announced that a volume order worth several billion euros covers the supply of conventional but primarily mild and plug-in hybrid variants of the fourth-generation 8-speed transmission (8HP).
In September 2021, Dongfeng Citroen, a brand of Dongfeng-Peugeot-Citroen Automobile Co., Ltd. (DPCA), launched its all-new C5 X luxury crossover paired with an Aisin 8-speed automated manual transmission (AMT)
In July 2021, Jatco Ltd. announced that it had developed the CVT-X, a new CVT for medium to large FWD vehicles that improve environmental performance and drivability. It has overcome the 90% transmission efficiency barrier that is considered a difficult feat for CVTs.
Automotive Automatic Transmission Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Driver
- 4.2 Market Restraints
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Automatic Transmission (AT)/Torque Converter (TC)
- 5.1.2 Automatic Manual Transmission (AMT)
- 5.1.3 Continuous Variable Transmission (CVT)
- 5.1.4 Dual Clutch Transmission (DCT)
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5.2 Fuel Type
- 5.2.1 Gasoline (Petrol)
- 5.2.2 Diesel
- 5.2.3 Hybrid
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5.3 Vehicle Type
- 5.3.1 Passenger Cars
- 5.3.2 Light Commercial Vehicles (LCVs)
- 5.3.3 Heavy Commercial Vehicles (HCVs)
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 Germany
- 5.4.2.2 United Kingdom
- 5.4.2.3 France
- 5.4.2.4 Italy
- 5.4.2.5 Rest of Europe
- 5.4.3 Asia-Pacific
- 5.4.3.1 China
- 5.4.3.2 Japan
- 5.4.3.3 India
- 5.4.3.4 South Korea
- 5.4.3.5 Rest of Asia-Pacific
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle-East and Africa
- 5.4.5.1 United Arab Emirates
- 5.4.5.2 Saudi Arabia
- 5.4.5.3 Rest of the Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles*
- 6.2.1 Aisin Seiki Co Ltd
- 6.2.2 Allison Transmission Holdings
- 6.2.3 BorgWarner Inc.
- 6.2.4 Continental AG
- 6.2.5 Daimler AG
- 6.2.6 Delphi Automotive
- 6.2.7 Eaton Corporation PLC
- 6.2.8 Fiat Powertrain Technologies
- 6.2.9 Jatco Ltd.
- 6.2.10 Magna International Inc.
- 6.2.11 NSK Ltd.
- 6.2.12 Valeo
- 6.2.13 ZF Friedrichshafen AG
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityAutomotive Automatic Transmission Industry Segmentation
The automotive automatic transmission system market has been segmented by type, fuel type, vehicle type, and geography. The report offers market size and forecast for Automotive Automatic Transmission Market in Value (USD billion) for all the abovementioned segments.
The market is segmented by type: Automatic Transmission/Torque Converter, Automated Manual Transmission, Continuously Variable Transmission, and Dual Clutch Transmission.
By fuel type, the market is segmented as Gasoline, Diesel, and Hybrid
By vehicle type, the market is segmented as passenger cars, light commercial vehicles, and heavy commercial vehicles.
By geography, the market is segmented as North America, Europe, Asia-Pacific, South America, and Middle-East and Africa.
| Type | Automatic Transmission (AT)/Torque Converter (TC) | |
| Automatic Manual Transmission (AMT) | ||
| Continuous Variable Transmission (CVT) | ||
| Dual Clutch Transmission (DCT) | ||
| Fuel Type | Gasoline (Petrol) | |
| Diesel | ||
| Hybrid | ||
| Vehicle Type | Passenger Cars | |
| Light Commercial Vehicles (LCVs) | ||
| Heavy Commercial Vehicles (HCVs) | ||
| Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| Saudi Arabia | ||
| Rest of the Middle-East and Africa |
Automotive Automatic Transmission Market Research FAQs
What is the current Automotive Automatic Transmission Market size?
The Automotive Automatic Transmission Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in Automotive Automatic Transmission Market?
ZF Friedrichshafen AG, Schaeffler AG, Hyundai Transys Inc., JATCO Ltd and Magna International Inc. are the major companies operating in the Automotive Automatic Transmission Market.
Which is the fastest growing region in Automotive Automatic Transmission Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automotive Automatic Transmission Market?
In 2024, the Asia-Pacific accounts for the largest market share in Automotive Automatic Transmission Market.
What years does this Automotive Automatic Transmission Market cover?
The report covers the Automotive Automatic Transmission Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Automatic Transmission Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Auto Transmission Industry Report
Statistics for the 2024 Auto Transmission market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Auto Transmission analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
