Summary
Explore the Global Automatic Transmission Market report with USD 106 Bn market size in 2023, forecast to hit USD 107.6 Bn by 2029, growing at 6.53% CAGR.
Market Overview
Global Automotive Market Overview
The global automotive transmission market was valued at USD 106 Bn in 2023 and grew at a CAGR of -3.02% during 2017–2023. The market is expected to reach USD 107.6 Bn by 2029, growing at a CAGR of 6.53% during 2023–2029. The automotive transmission market is highly consolidated, with the presence of certain large established players. Key factors influencing growth include the increasing number of passenger vehicles, rising fuel efficiency requirements, and a shift from manual to automatic transmission.
Taxonomy
Global Automotive Transmission Market Ecosystem
Global Automotive Transmission Market Size (in USD Bn), 2017-2023
The global automatic transmission market witnessed significant losses over the past few years, declining from USD 127.4 billion in 2017 to around USD 106.0 billion by 2023, registering a CAGR of -3.02%. This downturn can be largely attributed to multiple factors, including the COVID-19 pandemic and the Russia-Ukraine conflict, both of which severely disrupted supply chains and raw material procurement. Another major factor was the shortage of silicon-based chips, which slowed vehicle production and increased prices, thereby affecting the broader automotive market. However, the global automatic transmission market has started to normalize and is expected to return to its previous level by 2025 or 2026, with projected growth at an accelerated CAGR of over 6.5%.
Global Automotive Transmission Industry Analysis
Global Automotive Transmission Market Segmentation, 2023
Global Automatic Transmission Market Segmentation by Type of Transmission (in % revenue), 2023
In the global automatic transmissions market, traditional automatic transmission has emerged as the leading segment, holding a market share of over 52%, followed by continuously variable transmission with a 26% share and dual clutch transmission with a 20% market share. It is interesting to note that DCT and CVT have witnessed rapid growth in certain niches, such as CVT in small and hybrid cars and DCT in high-performance and luxury cars. Continuously Variable Transmission (CVT) and Automatic Manual Transmission are expected to see growing popularity in developing regions across Asia-Pacific, Latin America, and Africa, mainly due to their low cost and better fuel efficiency, making them popular choices because of lower upfront and maintenance costs. Dual Clutch Transmissions are popular choices in luxury and sports cars due to their significantly faster shifting times, making them suitable options. The demand for automatic transmission is also increasing in the commercial vehicle space, where Dual Clutch Transmissions and traditional automatic transmissions are among the most suitable applications.
Global Automatic Transmission Market Segmentation by Region (in % revenue), 2023
In the global automatic transmissions market, Asia-Pacific has emerged as the leading region, accounting for over 44% of the market share, followed by North America with 36% and Europe with 16%. Asia-Pacific holds the largest share owing to the high volume of vehicle production in the region and the increased penetration of automatic transmissions, especially automated manual transmissions, due to reduced cost and availability in the budget segment. Europe is also expected to witness strong growth, mainly because of the declining cost of automatic transmissions and improving shifting performance, making them a more popular choice among consumers. In Latin America and Africa, however, the growth of automatic transmissions continues to be strongly affected by high costs, a flourishing used car market, and a general preference and lower awareness for automatic transmissions.
Global Automotive Transmission Future Market Size
The global automatic transmissions market is expected to witness strong growth, rising from USD 99.6 billion in 2023 to over USD 160 billion by 2030, registering a CAGR of 6.53% during 2023–2030. This growth is primarily driven by increasing customer preference for a smooth and comfortable driving experience, growth in both passenger and commercial vehicle volumes, and rising consumer awareness and preference for fuel-efficient and environmentally friendly options. In terms of transmission type, traditional automatic transmission is expected to continue leading the market and currently holds over 50% share. Regionally, Asia-Pacific is poised to be the fastest-growing market, supported by increasing vehicle production, rising customer preference for automatic transmissions, and declining transmission prices. Some of the leading players in the market include ZF Friedrichshafen, AISIN Corporation, JATCO, Hyundai Transys, Magna International, and EATON.
Global Automotive Transmission Market Major Players Profile
| Company Name | Establishment year | Description |
|---|---|---|
Friedrichshafen | 1915 | ZF Friedrichshafen was established in 1915, headquartered in Germany. The company has its operations globally and has an employee base of around 164,869 employees. The company generated a revenue of USD 25.21 Bn in 2023. The company offers multiple automotive solutions namely powertrains, active passive safety, car chassis, commercial automotive solutions, and e-mobility. The company offers powertrains for both passenger and commercial vehicles |
Aisin Corporation | 1965 | Aisin Corporation was established in 1965, headquartered in Japan. The company has its operations globally and has an employee base of around 116,649 employees. The company generated a revenue of USD 32.58 Bn in 2022. The company offers multiple automotive solutions namely powertrains, chassis, body products, and electronic solutions and has over 199 subsidiaries across the world The company offers powertrains for both passenger and commercial vehicles |
Jatco | 1999 | Jatco stands for "Japan Automatic Transmission COmpany" was established in 1999, headquartered in Japan. The company has its operations globally and has an employee base of around 11,800 employees. The company generated a revenue of USD 4.13 Bn in 2022. The company claims to be a leading manufacturer of CVT (continuously variable transmission), and are highly acclaimed for their smooth acceleration and superior fuel performance. The company offers powertrains for passenger vehicles |
Hyundai Transys | 1994 | Hyundai Transys was established in 1994, headquartered in South Korea. The company has its operations globally and has an employee base of around 9964 employees. The company generated a revenue of USD 8.21 Bn in 2022. The company offers automotive solutions foscused towards powertrains and seats. The company offers powertrains for both passenger and commercial vehicles. In 2020, the company was first to develop world’s first connect transmission system enables the vehicle to automatically shift to the optimal gear after identifying the road and traffic conditions ahead |
Magna International | 1957 | Magna International was established in 1957, headquartered in Canada. The company has its operations globally and has an employee base of around 181,100 employees. The company generated a revenue of USD 37.8 Bn in 2023. The company offers multiple automotive solutions namely powertrains, assembly, modules, and components, the company offers its transmission solutions through is subsidiary GETRAG which it acquired in 2016. The company offers powertrains for both passenger and commercial vehicles |
Eaton | 1999 | EATON was established in 1999, headquartered in Ireland. The company has its operations globally and has an employee base of around 92,000 employees. The company generated a revenue of USD 20.752 Bn in 2023. The company offers multiple automotive solutions and offers powertrains and aftermarket parts. The company offers powertrains and spare parts for commercial vehicles |
Global Automotive Transmission Market Macro Economic Indicators
From 2017 to 2022, the World’s Gross Domestic Product (GDP) experienced an unsteady growth trajectory, starting at $814.8 Tn in 2017 and reaching $1013.3 Tn in 2022. The major reason for this erratic trend is owed to the COVID-19 pandemic which resulted in complete lockdowns and strong restrictions on global trade which was followed by strong growth in 2021 to normalization and in levels with growth before 2020.
From 2017 to 2022, the World’s inflation rate has been fairly constant till 2020, starting at 2.3% in 2017 and falling to just 1.9% in 2020 and the taking significant jumps in 2021 and 2022. The Inflation rate for 2022 is around 8% which is the highest in the past decade and is just short of the inflation rate in 2008.
Consumer confidence reflects the overall sentiment of buyers. Higher confidence levels typically result in increased spending on big-ticket items like vehicles. The Consumer confidence index has been gradually declining from 101 in 2017 to 97.8 in 2022, this decline has majorly occurred starting 2020 due to the decline in GDP and other socio-economic conditions like the pandemic, global layoffs and the ongoing war between Russia and Ukraine.
Employment levels influence consumer purchasing power. High employment rates generally boost consumer confidence, leading to increased vehicle purchases. The global employment rate has been fairly stable except for the year 2020, where the employer rate dipped to around 54.5% which resulted in huge losses both in terms of GDP and employment rates. The employment rates have started to improve and are currently at 56.4%, however, they are still lower as compared to pre-COVID-19 levels
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