Automotive Gearbox Market Size, Share & Industry Analysis, By Gearbox Type (Manual Transmission (MT), Intelligent Manual Transmission (IMT), Automated Manual Transmission (AMT), Automatic Transmission (AT), Continuously Variable Transmission (CVT), and Dual Clutch Transmission (DCT)), By Fuel Type (IC, HEV, and BEV), By Vehicle Type (Hatchback/Sedan, SUVs, LCV, and HCV), and Regional Forecast, 2024-2032

The global automotive gearbox market size was USD 63.53 billion in 2023. The market is projected to grow from USD 68.30 billion in 2024 to USD 103.86 billion by 2032 at a CAGR of 5.4% during the forecast period. The Asia Pacific dominated the Automotive Gearbox Market Share with a share of 52.96 % in 2023

An automotive gearbox is a mechanical component that transmits power from the engine to the wheels, enabling vehicles to change speed and direction. It consists of gears, shafts, and clutches that facilitate the transfer of torque at varying ratios. The global market is witnessing steady growth, driven by increasing vehicle production, technological advancements, and growing demand for automatic transmissions. Key players such as ZF Friedrichshafen AG and Aisin Seiki Co., Ltd. are dominating the market with their innovative gearbox solutions catering to diverse automotive needs.

The COVID-19 pandemic significantly impacted the global automotive gearbox market share, leading to disruptions in supply chains, manufacturing operations, and consumer demand. Lockdowns and economic uncertainties resulted in a decline in vehicle production and sales, affecting gearbox manufacturers' revenues. However, as economic activities resume and automotive demand rebounds, the market is expected to recover gradually, with a renewed focus on innovation and sustainability driving future growth.

Automotive Gearbox Market Trends

Rising Consumer Demand for EVs, Government Incentives, and Environmental Awareness is an Ongoing Trend in the Market.

Electric transmission systems, including single-speed transmissions and direct-drive systems, are gaining momentum due to their efficiency, simplicity, and suitability for electric powertrains. In 2023, electric vehicles (EVs) are projected to continue their growth trajectory, with sales expected to reach new heights globally. According to industry sources such as automotive industry reports and announcements from major automakers, EV sales are forecasted to increase significantly, spurred by technological advancements, government incentives, and growing environmental awareness among consumers.

The rise of electric vehicles is accompanied by a shift toward innovative gearbox technologies optimized for electric drivetrains. Major automakers are investing heavily in the development of advanced transmission systems explicitly tailored for EVs, including multi-speed transmissions and integrated gear shift-motor units. These gearbox solutions aim to enhance the efficiency, range, and overall performance of electric vehicles, addressing key challenges such as power delivery optimization and thermal management.

Another notable trend in the market is the increasing demand for automated manual transmissions (AMTs) and dual-clutch transmissions (DCTs), particularly in passenger vehicles. AMTs and DCTs offer a balance between the convenience of automatic transmissions and the fuel efficiency of manual transmissions, appealing to consumers seeking improved driving experiences without compromising on efficiency. Industry forecasts suggest steady growth in the adoption of AMTs and DCTs in passenger vehicles, supported by advancements in transmission control systems and shifting preferences toward semi-automatic transmission options.

The global market is characterized by the growing adoption of electric transmission systems and advancements in automated and semi-automatic transmission technologies. Additionally, ongoing efforts to enhance efficiency and sustainability are evident across all vehicle segments, especially in the passenger cars segment. These trends reflect the industry's response to evolving consumer preferences, regulatory requirements, and technological advancements, shaping the future of automotive transmission systems worldwide.

Request a Free sample to learn more about this report.

Automotive Gearbox Market Growth Factors

Rise in Adoption of EVs with Advanced Transmission Systems is Driving Market Growth

Automakers worldwide are increasingly investing in the development and production of electric vehicles to capitalize on this growing market. The rise of electric vehicles has been fueled by various factors, including environmental concerns, government regulations promoting clean energy, and advancements in battery technology, which have significantly improved the range and performance of electric vehicles. These technological advancements in transmission systems meet the unique requirements of electric powertrains.

In the realm of electric vehicles, transmission systems play a crucial role in optimizing performance, efficiency, and driving dynamics. Unlike traditional internal combustion engine vehicles that rely on multi-speed transmissions to deliver power to the wheels, electric vehicles typically feature single-speed transmissions or direct-drive systems due to the high torque and broad power band characteristics of electric motors. With the evolution of electric vehicle technology and the introduction of more sophisticated powertrains, there is a growing need for advanced transmission solutions to enhance efficiency, extend range, and improve the overall driving experience. This has led to the development of innovative gearbox technologies tailored explicitly for electric vehicles.

A notable trend in the electric vehicle gearbox market is the emergence of multi-speed transmissions designed to maximize efficiency and performance. While single-speed transmissions are sufficient for many electric vehicles, especially those with smaller motors or city-focused applications, multi-speed transmissions offer several advantages, including improved acceleration, higher top speeds, and enhanced energy efficiency. Advancements in materials science, such as lightweight materials and advanced composites, have enabled the development of compact and lightweight gearbox designs that minimize energy losses and maximize overall vehicle efficiency. The increasing adoption of electric vehicles across different segments, including passenger cars, commercial vehicles, and public transportation, is driving the demand for electric vehicle gearbox solutions globally. As automakers continue to expand their electric vehicle portfolios and governments implement stricter emissions regulations, the demand for efficient and reliable transmission systems for electric vehicles is expected to surge in the coming years.

The growing demand for electric vehicles and the need for advanced transmission systems tailored for electric powertrains are driving significant growth in the market. With ongoing technological innovations and increasing investments in electric vehicle development, the demand for electric vehicle gearbox solutions is poised for robust expansion in the foreseeable future.

RESTRAINING FACTORS

Shortage and Volatility in the Supply of Key Raw Materials Essential for Gearbox Manufacturing May Hinder Market Growth.

In recent years, the automotive industry has faced significant disruptions in the supply chain due to various factors, including geopolitical tensions, trade disputes, and the COVID-19 pandemic. These disruptions have led to shortages and price fluctuations in critical raw materials such as steel, aluminum, and rare earth metals, which are vital components in gearbox production.

The automotive industry continues to grapple with supply chain challenges stemming from geopolitical tensions and trade conflicts. For instance, tariffs imposed on steel and aluminum imports by major automotive manufacturing countries have disrupted the supply of these essential materials, leading to increased production costs and supply chain inefficiencies. Additionally, the ongoing global semiconductor shortage, exacerbated by the pandemic, has impacted the production of electronic components used in modern transmission systems, further straining the automotive supply chain.

Furthermore, the volatility in raw material prices adds uncertainty to production planning and cost management for gearbox manufacturers. Fluctuations in commodity prices can significantly impact manufacturing costs, profit margins, and overall competitiveness in the market. As a result, gearbox manufacturers may face challenges in maintaining stable pricing strategies and profitability amid unpredictable raw material costs.

Moreover, the shortage and volatility in raw material supply pose risks of production delays and disruptions for automotive OEMs, leading to potential setbacks in vehicle production schedules and delivery timelines. These disruptions can ripple through the entire automotive supply chain, affecting suppliers, distributors, and dealerships, ultimately impacting the overall performance of the market.

The persistent shortage and volatility in the supply of key raw materials present a significant restraining factor for the global market. Geopolitical tensions, trade conflicts, and supply chain disruptions underscore the need for diversification, resilience, and strategic sourcing strategies for gearbox manufacturers and automotive stakeholders. Addressing these challenges requires collaborative efforts across the industry to mitigate risks, enhance supply chain transparency, and foster a more stable and sustainable operating environment for the market.

Automotive Gearbox Market Segmentation Analysis 

By Gearbox Type Analysis

Increased Consumer Favoritism Towards Vehicles with Smoother Driving Experience, thus Contribute to its expansion

Based on gearbox type, the market is segmented into Manual Transmission (MT), Intelligent Manual Transmission (IMT), Automated Manual Transmission (AMT), Automatic Transmission (AT), Continuously Variable Transmission (CVT), and Dual Clutch Transmission (DCT).

The automatic transmission (AT) segment led the market in 2023 and is poised to maintain its dominance with a higher growth rate in the forecast period. The largest market share of automatic transmission systems can be attributed to the increasing demand for a smoother and hassle-free driving experience.

Following closely, the dual-clutch transmission (DCT) segment is expected to grow at the second-highest rate. This growth is driven by major auto OEMs' continuous efforts to enhance vehicle drivability and fuel efficiency. These efforts include the promotion of DCT transmission technology for next-generation vehicles aimed at improving fuel economy and reducing carbon emissions.

Continuously Variable Transmission (CVT), Intelligent Manual Transmission (IMT), Automated Manual Transmission (AMT), and Manual Transmission (MT) systems also hold a significant market share and are expected to grow steadily. This growth is due to consumer preferences for various transmission systems that cater to individual needs.

By Fuel Type Analysis

Higher Consumer Preference due to the Affordability and Availability of Conventional Vehicles Drove the Market Demand for ICE segment

Based on fuel type, the market is segmented into ICE, HEV, and BEV.

The ICE segment held the highest market share in 2023 and is anticipated to sustain its dominance in the forecast period. This demand surge is linked to its increasing popularity in passenger cars and light commercial vehicles owing to inherent advantages. Initially tailored for internal combustion engine (ICE) vehicles to optimize engine efficiency and power-to-speed ratios, this technology has matured considerably, contributing to ICE's greater market share compared to other fuel types.

The BEV segment is projected to experience significant growth, driven by ongoing innovation in electrification systems and the integration of electric drivetrain transmission systems into upcoming EV models.

The Hybrid Electric Vehicle (HEV) and the plug-in hybrid electric vehicle also included in the segment is forecasted to grow at a considerable rate, propelled by the increasing adoption of hybrid technology vehicles across various regions as part of the transition towards electrification.

By Vehicle Type Analysis

To know how our report can help streamline your business, Speak to Analyst

Increasing Appeal of SUVs, Stemming from their Versatile Applications, Positions them as the Dominant Force in the Market.

By vehicle type, the market is classified into Hatchback/Sedan, SUV, LCV, and HCV. 

SUVs have experienced a notable surge in global demand, becoming a preferred choice for consumers due to their versatility, spaciousness, and perceived safety.  Leading sales models in 2024, such as the Toyota RAV4 and Ford Explorer are driven by increasing consumer preference for larger vehicles and improved fuel efficiency.

The rising trend in the global market for hatchbacks and sedans is attributed to their affordability, maneuverability in urban areas, and improved fuel efficiency. Their continued appeal in 2023 indicates strong consumers’ interest in practical and economical transportation solutions.

Light commercial vehicles (LCVs) play a vital role in logistics and transportation across various industries, leading to their rising prominence in the global automotive gearbox market growth. In 2023, the demand for LCVs will be driven by increasing trade activities and infrastructure developments, particularly in emerging markets.

Heavy commercial vehicles (HCVs) remain indispensable for freight transportation, construction, and infrastructure development, contributing to their growth in the market.

REGIONAL INSIGHTS

Based on geography, the market is studied across North America, Europe, Asia Pacific, and the rest of the world.

To get more information on the regional analysis of this market, Request a Free sample

The automotive gearbox market in the Asia Pacific region is on the rise due to the booming automotive industry, particularly in countries such as China and India. Increased vehicle production, coupled with rising consumer preferences for automatic transmissions and continuously variable transmissions (CVTs), is driving market growth, making it the dominant and fastest-growing region in the market. Additionally, advancements in electric vehicle technology are fueling demand for specialized gearbox solutions tailored to EV drivetrains.

Europe market is experiencing growth driven by the transition toward electric vehicles (EVs) and the demand for more efficient transmission systems to maximize EV performance. Moreover, the focus on reducing carbon emissions is incentivizing the development of gearbox solutions that enhance vehicle efficiency and sustainability.

In North America, the market is growing, driven by factors such as technological advancements, increasing vehicle production, and increasing consumer demand for vehicles equipped with advanced transmission systems, such as automatic and dual-clutch transmissions, for a smoother driving experience.

In the rest of the world, the demand for reliable transmission systems, especially in commercial vehicles used for transportation and logistics, is contributing to market expansion. Additionally, the adoption of electric and hybrid vehicles in these regions is driving the need for advanced gearbox technologies to support electrification initiatives.

KEY INDUSTRY PLAYERS

Innovation, Diverse Product Portfolio, Quality, and Reliability makes ZF Friedrichshafen AG a Leading Player

ZF is a prominent global supplier of automotive components and systems, renowned for its innovative gearbox solutions. ZF's leadership in the market stems from its extensive experience, technological expertise, and commitment to quality. The company offers a comprehensive range of gearbox options, including manual, automatic, and dual-clutch transmissions, catering to various vehicle types and driving preferences. ZF's gearboxes are known for their efficiency, durability, and performance, making them the preferred choice for automotive manufacturers worldwide. With a focus on innovation and sustainability, ZF continues to set industry standards, driving advancements in automotive gearbox technology and maintaining its position as a market leader.

The company's increasing efforts in partnerships and acquisitions give it a competitive edge in the market, continually enhancing and broadening its product portfolio. Additionally, major players in the auto industry are backed by strong financial support for rapid expansion. These factors, among others, contribute to their dominant position in the automotive transmission market size.

Other significant players, such as Allison Transmission, Eaton AG, and Schaeffler AG, also rely on partnerships and the adoption of new technologies to maintain market position.

List of Top Automotive Gearbox Companies:

• ZF Friedrichshafen AG (Germany)


• Aisin Seiki Co., Ltd. (Japan)


• Allison Transmission (U.S.)


• Eaton Corporation plc (Ireland)


• BorgWarner Inc. (U.S.)


• Schaeffler AG (Germany)


• Magna International Inc. (Canada)


• GKN Automotive Limited (U.K.)


• Voith Group (Germany)

KEY INDUSTRY DEVELOPMENTS:

• April 2024- Stellantis launched its new electrified dual-clutch transmission (eDCT) at the Mirafiori Automotive Park in Italy. The company also planned an investment of approximately USD 267 million in the site and the Italian automotive industry to create the Mirafiori Automotive Park 2030.


• February 2024- Magna entered a contract with a North American OEM to supply a specialized primary rear e-drive system for one of its high-end niche vehicle platforms. The e-drive system, a variant of Magna’s 800V eDS Duo, delivers power and performance up to 726kW and 8,000Nm and integrates two e-motors, two inverters, and two gearboxes.


• October 2023- At the Busworld Europe expo in Belgium, Allison Transmission unveiled its newest innovation, the eGen Power e-Axle. Teaming up with Anadolu Isuzu, the company integrated the cutting-edge 85S eGen Power into a compact, fully electric 8-meter midi bus. This e-Axle offering caters specifically to midi bus and small truck applications requiring a lower gross axle weight rating of 8.5 tons.


• April 2023: Volkswagen AG announced the introduction of manual transmission to the company’s newly launched GT plus editions for the Indian Automarkets. The two models, Virtus GT Plus and Tiagun GT Plus, will feature a 6-speed manual gearbox.


• January 2023- Tata AutoComp invested around USD 50 Million in a dual-clutch transmission plant in Chakan. This investment aimed to cater to the growing demand for automatic transmission-equipped cars in India. Tata AutoComp aimed to gain a first-mover advantage in the market, with a new plant boasting an initial production capacity of 100,000 units.

REPORT COVERAGE

The global automotive gearbox market overview report provides a detailed market analysis focusing on crucial aspects such as leading companies, service types, and product applications. Besides this, the market research report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth over recent years.

To gain extensive insights into the market, Request for Customization

Report Scope & Segmentation