U.S. Automotive Transmission Market to Reach USD 19.6 Billion by 2035, Growing at 6.1% CAGR

Technological Advancements and EV Adoption Drive Market Transformation

According to a new analysis by DataM Intelligence, the U.S. Automotive Transmission Market, valued at USD 10.2 billion in 2024, is projected to reach USD 19.6 billion by 2035, registering a CAGR of 6.1% from 2025 to 2035. Demand for advanced transmission systems is expanding rapidly due to tighter vehicle efficiency standards, the electrification of drivetrains, and the rising consumer preference for comfort and performance-focused vehicles.

The U.S. automotive industry is experiencing technological evolution powered by hybridization and the shift toward electric vehicles (EVs). Automatic, dual-clutch, and continuously variable transmissions (CVTs) are becoming preferred choices as automakers aim to enhance fuel efficiency, reduce emissions, and deliver seamless driving experiences. Moreover, the integration of smart systems and autonomous vehicle technologies is shaping the next generation of intelligent transmissions designed for safety and adaptive operation.

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Key Highlights from the Report

➤ The U.S. Automotive Transmission Market will reach USD 19.6 billion in 2035, growing at a 6.1% CAGR.
➤ Automatic transmissions continue to dominate the market, offering ease of driving and reliability.
➤ Dual-clutch and CVT technologies are gaining traction for their superior performance and fuel efficiency.
➤ Electric vehicle transmissions present strong opportunities for innovation and system optimization.
➤ Passenger cars remain the leading vehicle segment driven by urban mobility and advanced drivetrain integration.
➤ Major players like Toyota, Ford, General Motors, and Magna are investing heavily in next-generation EV-compatible transmission systems.

Market Segmentation

By Transmission Type:

The U.S. market features diverse transmission systems categorized into automatic, manual, automated manual, continuously variable (CVT), and dual-clutch (DCT) types. Automatic transmissions accounted for the largest share in 2024, driven by consumer demand for convenience, particularly in urban commuting.

While manual transmissions continue to attract performance enthusiasts, their adoption is declining amid automation trends. CVT systems are gaining popularity for enabling smooth power delivery and fuel economy, while DCTs are widely used in high-performance vehicles due to faster gear shifts and improved efficiency.

By Vehicle Type:

Passenger cars dominate the market, benefiting from ongoing innovation in hybrid and automatic transmission technology. The segment is followed by Light Commercial Vehicles (LCVs), which are seeing increased adoption of efficient drivetrains to meet logistics sector demands. Heavy Commercial Vehicles (HCVs) form another critical category, as improved transmission durability directly supports freight and industrial mobility growth across the U.S.

By Fuel Type:

Gasoline-based vehicles currently capture the largest share, underpinned by cost-effectiveness and mature infrastructure. Diesel vehicles remain essential for heavy-duty operations in logistics and construction. However, the rapid rise of electric and hybrid vehicles represents the future growth catalyst, as manufacturers design specialized e-transmissions that enhance torque delivery and power recovery efficiency.

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Regional Insights

The U.S., being one of the world's most advanced automotive markets, continues to lead in innovation and deployment of advanced transmission solutions. States like Michigan, Ohio, and California host key R&D hubs and EV manufacturing facilities, driving new transmission development. The ongoing federal and state incentives for electric mobility and the enforcement of corporate average fuel economy (CAFE) standards are motivating automakers to adopt more efficient powertrain technologies. Growing investments in battery production facilities across North America are also likely to boost demand for EV-oriented transmission systems over the coming decade.

Market Dynamics

Market Drivers:

The key market drivers include stricter fuel efficiency regulations, a surge in EV production, and consumer demand for smooth driving experiences. Manufacturers are focusing on developing lightweight, electronically controlled systems that optimize performance and reduce carbon emissions while meeting new federal mandates.

Market Restraints:

Complex engineering designs and high production costs associated with advanced automatic and hybrid transmission systems challenge profitability. Furthermore, maintenance complexities, rare component shortages, and dependence on precision electronics can constrain broad-scale adoption among lower-priced vehicle categories.

Market Opportunities:

The growing U.S. EV ecosystem presents major prospects for specialized e-transmissions. Additionally, the emergence of smart, adaptive transmission systems that integrate analytics and artificial intelligence enables improved safety and vehicle responsiveness. Collaborations between OEMs and tech firms are creating scalable pathways for future mobility transformation.

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Reasons to Buy the Report

✔ Comprehensive analysis of market trends and segmental growth opportunities through 2035.
✔ Insights into the evolution of automatic and electric vehicle transmissions.
✔ Detailed profiling of key manufacturers, strategies, and technology roadmaps.
✔ Evaluation of regulatory frameworks influencing drivetrain innovation.
✔ Identification of growth opportunities within hybrid and next-generation transmission systems.

Frequently Asked Questions (FAQs)

◆ How big is the U.S. Automotive Transmission Market in 2024?
◆ What is the expected CAGR for the U.S. Automotive Transmission Market between 2025 and 2035?
◆ Which transmission type holds the largest market share in the United States?
◆ Which vehicle type is projected to register the highest demand over the forecast period?
◆ Who are the major companies driving innovations in the U.S. Automotive Transmission Market?

Company Insights

Toyota Motor Corporation

Magna International Inc.

Ford Motor Company

Aisin Seiki Co., Ltd.

General Motors

Allison Transmission Holdings

Honda Motor Co., Ltd.

Hyundai Motor Company

Getrag LLC

BorgWarner Inc.

Recent Developments:

In October 2023, Ford Motor Company announced expanded production of EV-compatible transmissions to strengthen its competitive positioning in the American EV market.

In July 2023, Allison Transmission Holdings completed the acquisition of a key components supplier to enhance its electric powertrain capabilities.

In 2023, Magna International Inc. advanced its hybrid transmission portfolio through new technology collaborations to boost system efficiency and torque output.

Conclusion

The U.S. Automotive Transmission Market is poised for significant growth driven by electrification, technology integration, and evolving environmental regulations. As demand surges for smart, efficient, and high-performance drivetrains, manufacturers are rapidly adapting to the next generation of transmission solutions. Investments in e-transmissions, lightweight materials, and AI-powered systems are transforming the automotive landscape, positioning the U.S. market at the forefront of sustainable and intelligent mobility by 2035.

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DataM Intelligence 4Market Research is a comprehensive market intelligence platform offering syndicated and customized reports along with expert consulting across multiple industries, including chemicals, healthcare, agriculture, food & beverages, and more. With extensive experience and a strategy-focused approach, DataM provides businesses and individuals with reliable market insights, statistical forecasts, and personalized research solutions to help them make informed decisions and successfully bring innovations to market.

This release was published on openPR.