Automotive Transmission Market Size

Automotive Transmission Market size was over USD 68.44 billion in 2024 and is anticipated to exceed USD 156.65 billion by the end of 2037, witnessing over 6.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of automotive transmission is evaluated at USD 72.05 billion. The growth of the market can primarily be attributed to the growing demand for vehicles worldwide. Furthermore, the global demand for cars is rising as a result of factors including population expansion, urbanization, and economic expansion. As populations and economies continue to grow, more people can afford and desire personal vehicles. Urbanization also drives demand for automobiles as people living in cities often rely on cars for transportation owing to limited public transportation options. In addition, factors such as increasing disposable income and a growing middle class in many countries are also contributing to the growing demand for automobiles. Particularly in emerging nations, these demographics are more inclined to own vehicles. The growing demand for automobiles also creates opportunities for the manufacturing and sales of cars, as well as the development of related industries such as parts suppliers, and maintenance and repair services. For instance, more than 82.5 million vehicles were sold worldwide in 2021.

Automotive transmission is what moves the power from the engine to the wheels. Transmissions are necessary for any motor vehicle to prevent the engine from destroying itself. Most car engines would shake themselves to pieces or overheat without a gearbox system. Furthermore, any car without a transmission would be unable to harness the engine’s speed, capping its maximum velocity. With rising sales of vehicles as well as cars, the demand for automotive transmission is on the rise amongst car users, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive transmission market during the forecast period. For instance, nearly 2 million total cars sold were in China in 2020.