Press release
Global Automotive Automatic Transmission Market Expansion at 6.9% CAGR, Valued at $94.07 Billion by 2029
Automotive Automatic Transmission Market
What Are the Automotive Automatic Transmission Market Size Forecast for 2025?
The scale of the automotive automatic transmission market has seen substantial expansion in the past few years. It is projected to rise from $67.44 billion in 2024 to a staggering $71.97 billion in 2025, marking a compound annual growth rate (CAGR) of 6.7%. This considerable growth in the preceding period is ascribed to factors such as the heightened incorporation of hybrid and plug-in hybrid systems, a surge in demand for vehicles equipped with automatic transmission, a shift in focus towards fuel-efficiency and reducing emissions, an escalating inclination for convenience and easy driving experience, along with the worldwide enlargement of the automotive industry.
What Is the Market Size Outlook for Automotive Automatic Transmission Until 2029?
The market for automatic transmissions in the automobile industry is anticipated to experience substantial growth in the coming years, expecting to reach $94.07 billion by 2029 with a compound annual growth rate (CAGR) of 6.9%. This projection for the forecast period can be credited to factors such as the increasing uptake of electric vehicles equipped with automatic transmission systems, incorporation of advanced driver-assistance systems (ADAS) into these systems, stringent regulatory standards for emissions, expansion of ride-sharing and autonomous vehicle fleets, as well as the introduction of innovative materials and manufacturing techniques to create lighter, more efficient transmission systems. Key trends forecasted for this period also include a pivot towards dual-clutch and continuously variable transmissions, technological progress within transmission systems, development of preventative maintenance solutions specifically for transmission systems, increased focus on connectivity and communication within these systems, and the rise of subscription-based transmission services and enhancements.
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What Are the Major Factors Driving Demand in the Automotive Automatic Transmission Market?
The anticipated increase in electric vehicle usage is forecasted to boost the expansion of the automotive automatic transmission industry. Electric and hybrid vehicles, which run on one or several electric motors either solely or in tandem with an internal combustion engine, provide enhanced energy efficiency and lessen environmental degradation. The growing preference for electric vehicles is triggered by factors like ecological apprehensions, governmental incentives, improvements in battery technology, and escalating consumer demand for fuel-efficient cars. Automotive automatic transmission structures are employed in electric cars to competently control power supply and improve vehicle performance. For instance, the International Energy Agency (IEA), an autonomous intergovernmental organization headquartered in France, reported in April 2023 that there was a considerable boost in global electric car sales, with a remarkable increase of 3.5 million units in 2023 from 2022, equating to an impressive 35% year-on-year elevation. Therefore, the accelerating transition towards electric vehicles fuels the growth of the automotive automatic transmission market.
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How Are End-Use Segments Shaping the Automotive Automatic Transmission Market Outlook?
The automotive automatic transmission market covered in this report is segmented -
1) By Type: Automatic Transmission, Automated Manual Transmission, Dual Clutch Transmission, Continuously Variable Transmission
2) By Fuel Type: Gasoline, Diesel, Hybrid
3) By Vehicle Type: Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles
Subsegments:
1) By Automatic Transmission: Conventional Automatic Transmission (Torque Converter), Multi-Speed Automatic Transmission
2) By Automated Manual Transmission: Single-Clutch Automated Manual Transmission, Multi-Clutch Automated Manual Transmission
3) By Dual Clutch Transmission: Dry Dual Clutch Transmission, Wet Dual Clutch Transmission
4) By Continuously Variable Transmission: Hydraulic CVT, Electric CVT, Belt-Chain CVT
What Are the Strategic Trends Transforming the Automotive Automatic Transmission Market Landscape?
Key players in the automotive automatic transmission market are concentrating on creating innovative systems like intelligent clutch heat mapping algorithms to gain a competitive advantage. The intelligent clutch heat mapping algorithm is a complex, software-based system embedded in automotive automatic transmission systems designed to scrutinize and enhance the clutch mechanism's functionality. ZF India, a subsidiary of ZF Friedrichshafen AG based in India and known for manufacturing and supplying integral hydraulic power steering systems, exemplified this in July 2022. They introduced the EcoTronic Mid Automated Manual Transmission (AMT) system for commercial vehicles, which offers insights for elevating fleet operational efficiency. The system, equipped with a 'rock-free' mode for effortless driving on difficult terrains, has the advantage of doubling the clutch life and boosting the gearbox life, which ultimately minimizes vehicle downtime. This India-based manufactured transmission is applicable in various sectors such as road transportation, passenger transport, and mining, assuring simplicity in operation and dependability.
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Who Are the Prominent Companies in the Automotive Automatic Transmission Market by ?
Major companies operating in the automotive automatic transmission market are Ford Motor Company, General Motors, Continental AG, ZF Friedrichshafen AG, Magna International Inc., Aisin Seiki Co. Ltd., Eaton Corporation PLC, Schaeffler AG, BorgWarner Inc., JTEKT Corporation, Dana Incorporated, NTN Corporation, GKN Automotive Limited, Voith Group, AVL List GmbH, Allison Transmission Inc., Ricardo plc, Tremec Corporation, Punch Powertrain NV, JATCO Ltd., Honda Transmission Manufacturing of America, GETRAG, Hyundai PowerTech Co. Ltd.
Which Region Is Expected to See the Highest CAGR in the Automotive Automatic Transmission Market?
North America was the largest region in the automotive automatic transmission market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive automatic transmission market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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