Press Release

Automotive Automatic Transmission Market to Grow with a CAGR of 4.50% through 2028

Rising consumer preference for convenience and ease of use and continuous technological advancements in transmission systems are the factors driving the Global Automotive Automatic Transmission Market in the forecast period 2024-2028

 

According to TechSci Research report, “Automotive Automatic Transmission Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Automotive Automatic Transmission Market stood at USD 108.4 billion in 2022 and is anticipated to grow with a CAGR of 4.50% in the forecast period, 2024-2028

The global automotive automatic transmission market is a crucial segment within the automotive industry, playing a pivotal role in the performance, efficiency, and overall driving experience of vehicles worldwide. Automatic transmissions have gained widespread popularity due to their convenience, ease of use, and ability to enhance fuel efficiency and vehicle performance. This market encompasses a broad spectrum of automatic transmission technologies, from traditional torque converter-based systems to advanced dual-clutch and continuously variable transmissions (CVTs).

One of the defining characteristics of the global automotive automatic transmission market is its substantial size and consistent growth. This growth is driven by various factors, including the rising demand for automatic transmissions in passenger vehicles, increasing urbanization, and the growing need for improved fuel efficiency. As consumers increasingly seek more comfortable and convenient driving experiences, automatic transmissions have become the preferred choice for a significant portion of the market. The market size is expected to continue expanding, with emerging economies contributing significantly to this growth.

Several major players dominate the global automatic transmission market. These include companies such as Aisin Seiki, ZF Friedrichshafen AG, BorgWarner, and Continental AG. These industry leaders invest heavily in research and development to innovate and meet the evolving demands of the automotive industry, ensuring that they remain at the forefront of technology and market competition.

One of the prominent technology trends in the automotive automatic transmission market is the ongoing shift towards more advanced transmission technologies. Traditional torque converter automatic transmissions, while still popular, are being complemented and, in some cases, replaced by more fuel-efficient alternatives like CVTs and dual-clutch transmissions (DCTs). CVTs, for instance, offer smooth acceleration and improved fuel economy, making them an attractive choice for both manufacturers and consumers. This technology-driven evolution reflects the industry's commitment to meeting stricter emission standards and the continuous quest for better fuel efficiency and vehicle performance. The global automotive automatic transmission market is poised for further transformation as new technologies continue to shape the future of mobility.

 

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North America, particularly the United States, is a significant market for automotive automatic transmissions. In the U.S., automatic transmissions have long been the preferred choice for consumers due to their convenience and ease of use. The market is characterized by a strong presence of domestic automakers like General Motors, Ford, and Chrysler, as well as foreign manufacturers with production facilities in the region. Fuel efficiency regulations have prompted the adoption of advanced transmission technologies such as CVTs and DCTs, contributing to the market's growth.

Europe is a diverse market for automotive transmissions, with a strong focus on fuel efficiency and environmental sustainability. European consumers have traditionally favored manual transmissions, but automatic transmissions have gained traction, especially in premium and high-performance vehicle segments. Leading European automakers like Volkswagen, BMW, and Mercedes-Benz offer a wide range of vehicles equipped with automatic transmissions. The market is also driven by stringent emissions standards, pushing manufacturers to adopt advanced transmission technologies for reduced CO2 emissions.

The Asia-Pacific region, including countries like China, Japan, and India, represents a significant and rapidly growing market for automotive automatic transmissions. In China, the world's largest automotive market, the demand for automatic transmissions has surged as urbanization and income levels rise. Local and international automakers are investing in production facilities to meet this demand. Japan, known for its technological innovation, has been a pioneer in developing advanced transmission technologies, including hybrid systems. India, with its expanding middle class, is also witnessing increased adoption of automatic transmissions, particularly in congested urban areas.

Latin America has a growing market for automatic transmissions, primarily driven by consumer preferences for convenience and comfort. Brazil, in particular, has seen a shift from manual to automatic transmissions as consumers seek more relaxed driving experiences. Economic conditions and fuel prices in the region can influence the rate of adoption of automatic transmissions.

The Middle East, especially the Gulf countries, has a strong market for luxury and high-performance vehicles, many of which come equipped with automatic transmissions. The African market is diverse, with variations in consumer preferences and economic conditions across different countries. In some African nations, automatic transmissions are preferred for their reliability in challenging road conditions.

In summary, the global automotive automatic transmission market is shaped by regional factors that influence consumer preferences and regulatory requirements. While North America and Europe have well-established markets with a focus on fuel efficiency and emissions reduction, the Asia-Pacific region is experiencing rapid growth due to increasing urbanization and rising incomes. Latin America, the Middle East, and Africa each have their unique market dynamics, influenced by local economic conditions and consumer demands. Understanding these regional variations is crucial for automakers and suppliers to effectively target and serve their diverse customer base worldwide.

 

Major companies operating in Global Automotive Automatic Transmission Market are:

  • Aisin Seiki Co Ltd
  • Allison Transmission Holdings
  • BorgWarner Inc.
  • Continental AG
  • Daimler AG
  • Delphi Automotive
  • Eaton Corporation PLC
  • Fiat Powertrain Technologies
  • Jatco Ltd.
  • Magna International Inc

 

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 “The global automotive automatic transmission market will continue to evolve rapidly, driven by the growing demand for convenience, fuel efficiency, and emission reductions. Advanced transmission technologies like CVTs and DCTs will play an increasingly prominent role as automakers strive to meet stringent regulatory requirements and cater to changing consumer preferences. Regional variations will remain significant, with Asia-Pacific leading the growth, while North America and Europe focus on eco-friendly solutions. To stay competitive, industry players should invest in research and development to offer innovative transmission options that align with these global trends,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Automotive Automatic Transmission Market – Global Industry Size, Share, Trends Opportunity, and Forecast 2018-2028 Segmented By Vehicle Type (Passenger Car, Light Commercial Vehicles, and Medium & Heavy Commercial Vehicles), By Fuel Type (Gasoline, Diesel, and Hybrid), By Type (Automatic Transmission/Torque Converter, Automated Manual Transmission, Continuously Variable Transmission, and Dual Clutch Transmission), By Regional, Competition, has evaluated the future growth potential of Global Automotive Automatic Transmission Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Automotive Automatic Transmission Market.

 

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