Autonomous Cars Outlook Report 2025 | Market to Reach USD 230.4 Billion by 2034 with 7.2% CAGR, Driven by Electrification and AI Integration - ResearchAndMarkets.com

The "Autonomous Cars Market Outlook 2025-2034: Market Share, and Growth Analysis By Automation Level, By Product Type, By Application" report has been added to ResearchAndMarkets.com's offering.

Automotive Transmission Market is valued at USD 123.6 billion in 2025. Further the market is expected to grow by a CAGR of 7.2% to reach global sales of USD 230.4 billion in 2034

The automotive transmission market encompasses systems that transfer power from a vehicle's engine or motor to its wheels, enabling speed and torque modulation. Transmissions are a critical part of vehicle drivetrains and are available in various forms, including manual, automatic, continuously variable (CVT), and dual-clutch transmissions (DCT). With the global shift toward improved driving comfort, efficiency, and emissions control, automatic and hybrid transmission systems are increasingly replacing traditional manual types. The rise of electric vehicles (EVs) is also reshaping the transmission landscape, with single-speed and integrated e-drive systems becoming more prevalent. Innovation, fuel efficiency, and driving experience remain at the core of transmission system evolution.

In 2024, the automotive transmission market saw notable momentum, fueled by higher vehicle production volumes and increasing adoption of fuel-efficient drivetrains. Automatic and dual-clutch systems dominated the passenger vehicle segment, particularly in developed markets. Electrification continued to disrupt traditional designs, as automakers focused on integrating compact, lightweight, and efficient transmission units into EVs and hybrids.

The commercial vehicle segment also adopted more automated manual transmissions (AMTs) to enhance fuel economy and reduce driver fatigue. Leading manufacturers expanded product lines and partnerships to offer modular solutions compatible with both ICE and electric powertrains, while software integration became a key value proposition in new system launches.

Looking forward to 2025 and beyond, the automotive transmission market is poised for a shift toward software-defined and electric-compatible systems. As EVs gain market share, traditional transmission demand will decline slightly, but innovative transmission designs for plug-in hybrids and heavy-duty electric trucks will emerge. Automakers will continue focusing on integrating intelligent transmission controls that adapt to real-time driving conditions using AI and machine learning. Lightweight materials, enhanced thermal management, and modular e-axle solutions will become key differentiators. Additionally, growing investments in autonomous vehicle technologies will influence transmission system development, with smoother, more adaptive gear transitions becoming integral to future mobility.

Key Insights Automotive Transmission Market

• Shift toward fully automatic and dual-clutch transmission systems in passenger vehicles to enhance performance, comfort, and fuel efficiency.
• Emergence of e-transmissions and integrated drive units for EVs, reducing complexity and improving energy conversion in electric drivetrains.
• Use of AI algorithms for adaptive shift strategies based on driving patterns, terrain, and vehicle load conditions in next-gen vehicles.
• Growth of modular transmission systems that support both ICE and hybrid powertrains, offering scalability and production efficiency.
• Increased focus on software and embedded control development as a core component of modern transmission system value chains.
• Rising consumer demand for smoother and more efficient driving experiences fuels demand for advanced automatic and hybrid transmission systems.
• Global emission regulations and fuel economy standards push OEMs to develop lighter and more efficient transmission architectures.
• Rapid growth in EV and hybrid vehicle production requires new transmission solutions optimized for electric motor characteristics.
• Increasing vehicle sales in developing markets drive demand for cost-effective and durable transmission systems across multiple segments.
• High development and integration costs of advanced transmission systems can be a barrier, especially for low-margin or entry-level vehicle models.

Your Takeaways From this Report

• Global Automotive Transmission market size and growth projections (CAGR), 2024-2034
• Impact of recent changes in geopolitical, economic, and trade policies on the demand and supply chain of Automotive Transmission.
• Automotive Transmission market size, share, and outlook across 5 regions and 27 countries, 2025-2034.
• Automotive Transmission market size, CAGR, and Market Share of key products, applications, and end-user verticals, 2025-2034.
• Short and long-term Automotive Transmission market trends, drivers, restraints, and opportunities.
• Porter's Five Forces analysis, Technological developments in the Automotive Transmission market, Automotive Transmission supply chain analysis.
• Automotive Transmission trade analysis, Automotive Transmission market price analysis, Automotive Transmission Value Chain Analysis.
• Profiles of 5 leading companies in the industry- overview, key strategies, financials, and products.
• Latest Automotive Transmission market news and developments.

Key Attributes:

Companies Featured

• Volkswagen
• Toyota Motor Corporation
• Ford Motor Company
• General Motors Co.
• Honda Motor Co. Ltd.
• Nissan Motor Co. Ltd.
• Caterpillar Inc.
• ZF Friedrichshafen AG
• Magna International Inc.
• Aisin Corporation
• Chang'an Automobile Co. Ltd.
• BorgWarner Inc.
• American Axle & Manufacturing Inc.
• FAW Group Corp. Ltd.
• CLAAS
• Allison Transmission Holdings Inc.
• Kalyani Technoforge Limited
• TREMEC Corporation
• Link Engineering Company
• JATCO Ltd.
• Solero Technologies LLC
• IMS Global Gear Machining LLC
• Avtec Limited
• Shanghai Automotive Transmission Co. Ltd.
• Hyundai Kefico Corporation
• Colotti Trasmissioni
• Gimec Trasmissioni S.r.l

Automotive Transmission Market Segmentation

By Transmission Type

• Intelligent Manual Transmission (IMT)
• Automated Manual Transmission (AMT)
• Automatic Transmission (AT)
• Dual-clutch Transmission
• Other Transmission Types

By Engine

• Electric Engine

By Fuel Type

• Diesel
• Other Fuel Types

By Vehicle Type

• Light Commercial Vehicle
• Heavy Commercial Vehicle
• Electric Vehicle

By Geography

• North America (USA, Canada, Mexico)
• Europe (Germany, UK, France, Spain, Italy, Rest of Europe)
• Asia-Pacific (China, India, Japan, Australia, Vietnam, Rest of APAC)
• The Middle East and Africa (Middle East, Africa)
• South and Central America (Brazil, Argentina, Rest of SCA)

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