By Type :

The type segment is classified into Manual Transmission, Automatic Transmission, Automated Manual Transmission (AMT), Continuously Variable Transmission (CVT), Dual-Clutch Transmission (DCT), and Tiptronic Transmission. Manual transmission dominates the market in 2022 as manual transmissions offer greater control over the vehicle's performance. Manual transmission allows the driver to shift gears at their discretion for more precise control over the vehicle's speed and acceleration, especially for performance-oriented vehicles, such as sports cars. Moreover, manual transmissions are more fuel-efficient than automatic transmissions owing to the fewer internal components that are lighter than automatic transmissions, which reduce energy losses and improves fuel economy.

The aforementioned factors, including improved performance and fuel efficiency, are contributing significantly to the growth of the automotive transmission market. For instance, in June 2020, Hyundai launched a new Intelligent Manual Transmission (iMT) technology in its Venue compact SUV, designed to offer convenience with the control of the manual transmission. The iMT system is equipped with a 'creep' function that allows the vehicle to move forward slowly without using the accelerator pedal, offering convenience to drive in heavy traffic and promoting the growth of the automotive transmission market.

Dual Clutch Transmission (DCT) is expected to register the fastest CAGR in the automotive transmission market as DCTs offer superior fuel efficiency and smoother shifting than traditional automatic transmissions. The increasing importance of fuel efficiency and reduced emissions in the automotive industry is further driving the growth of DCT transmission. Additionally, the growing adoption of DCTs in high-performance vehicles to allow faster acceleration and higher top speeds are also promoting the market growth.

For instance, DCTs are designed to shift gears much faster than traditional automatic transmissions, allowing the engine to operate more efficiently and deliver more power to the wheels. Consequently, the ability of DCTs to offer high performance and superior fuel efficiency are among the key factors that are projected to drive the growth of the automotive transmission market during the forecast period. For instance, in March 2022, Tata Motors launched the ALTROZ DCA with a Dual Clutch Automatic transmission to offer superior performance, fuel efficiency, and reliability. The integration of DCT technology enables fast gear changing that improves fuel efficiency and also enhances the user experience.

By Engine Type :

The engine type segment is bifurcated into Internal Combustion (IC) engines and electric engines. IC engines dominate the market by offering high power and torque outputs, becoming ideal for a wide range of driving conditions, including high-speed driving, towing, and off-road driving. The high power is especially true for larger vehicles, such as trucks and SUVs, where the power and torque of an IC engine are necessary to carry heavy loads or navigate through rough terrain. Additionally, IC engines are relatively affordable and have a well-established infrastructure for fuel distribution and maintenance. The aforementioned factors including high power and torque outputs contribute collectively in driving the growth of the global automotive transmission market. For instance, in July 2021, Lotus launched the EMIRA sports car with three transmission options, including a manual transmission, automatic transmission, and dual-clutch transmission, with an internal combustion engine. The inclusion of multiple transmissions improves the torque output and also provides an enhanced driving experience thereby promoting the growth of the automotive transmission market.

Electric engines are anticipated to register the fastest CAGR in the automotive transmission market during the forecast period. The growing adoption of EVs increases the demand for electric engines that is expected to drive the growth of the automotive transmission market in upcoming years. Additionally, electric vehicles offer a range of benefits over traditional gasoline or diesel-powered vehicles, including reduced emissions, improved fuel efficiency, and lower operating costs. Furthermore, the advancements in electric motor technology, battery technology, and power electronics are also driving the growth of the electric engine market.

Moreover, the increasing focus by the governments on reducing emissions and achieving sustainability goals is also contributing significantly in propelling the growth of electric engines. In conclusion, the ability of electric engines to reduce carbon emissions and improve fuel efficiency is expected to drive the growth of the automotive transmission market in the upcoming years. For instance, in January 2023, Suzuki Motor Corporation collaborated with Inmotive Inc. to develop a 2-speed EV transmission for Suzuki electric vehicle. The collaboration aims to develop electric vehicles having improved efficiency, faster acceleration, and increased top speed thus, contributing significantly in driving the growth of the electric engines market.

By Vehicle Type :

The vehicle type segment is trifurcated into passenger cars, light commercial vehicles, and heavy commercial vehicles. Passenger cars dominate the automotive transmission market and are also expected to witness the fastest CAGR during the forecast period. Passenger cars require a wide range of transmission options including manual, automatic, CVT, and DCT to meet the demand for different driving conditions, performance requirements, and customer preferences. Additionally, passenger cars are more affordable than other types of vehicles, such as commercial trucks and buses. The accessibility of automotive transmissions at an affordable price lead to the expansion of the customer base and results in increased sales volumes, thereby driving the growth of the automotive transmission market. For instance, in November 2022, according to India Brand Equity Foundation (IBEF), the Indian passenger car market was sized at USD 32.70 billion in 2021 and is expected to reach a value of USD 54.84 billion by 2027, by witnessing a CAGR of over 9% between 2022-27. The growth in sales of passenger vehicles is, therefore, expected to increase the demand for automotive transmissions in upcoming years.

Global Automotive Transmission Market, By Vehicle Type, 2022

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By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Asia Pacific accounts for the largest market share for the automotive transmission market in 2022 valued at USD 28.48 Billion with a CAGR of 6.5% during the forecast period and is also expected to witness the fastest CAGR during the forecast period. The automotive industry in Asia Pacific is characterized by a high degree of manufacturing efficiency and cost competitiveness. The above-mentioned factors enable manufacturers in the region to produce vehicles and components at lower costs than their counterparts in Europe and North America. Additionally, Asia Pacific encompasses a large number of transmission component manufacturers who are constantly developing advanced technologies and manufacturing capabilities to hold the market position.

Moreover, automotive manufacturers supply transmission components to both domestic and international automakers, further facilitating the growth of the automotive transmission market in the region. For instance, in July 2021, Jatco Ltd. launched CVT-X, for medium to large FWD vehicles that improve environmental performance and drivability. CVT-X has 90% transmission efficiency to transmit power from the engine to the wheels with minimal energy loss, improving fuel efficiency and reducing emissions.

Asia Pacific Automotive Transmission Market, By Countries (2022)