Transmission Fluids Market Report 2026

The transmission fluids market size has grown strongly in recent years. It will grow from $10.24 billion in 2025 to $11.23 billion in 2026 at a compound annual growth rate (CAGR) of 9.7%. The growth in the historic period can be attributed to automotive production growth, demand for automatic transmissions, vehicle performance requirements, expansion of commercial vehicle fleets, lubricant technology improvements.

The transmission fluids market size is expected to see rapid growth in the next few years. It will grow to $16.44 billion in 2030 at a compound annual growth rate (CAGR) of 10%. The growth in the forecast period can be attributed to electric vehicle transmission needs, growth of dual clutch systems, fuel efficiency regulations, rising vehicle parc, demand for low-maintenance fluids. Major trends in the forecast period include shift toward synthetic fluids, high-performance transmission oils, fluids for advanced gear systems, extended drain interval products, compatibility with electric drivetrains.

Rapid growth of the automotive industry is expected to drive the expansion of the transmission fluids market in the coming years. The automotive industry encompasses the global sector involved in the manufacturing and sale of motor vehicles for personal and commercial mobility. Its growth is driven by increasing consumer demand for reliable and high-performance vehicles worldwide. The transmission fluids market supports this growth by providing advanced fluids that enhance transmission durability, improve fuel efficiency, and ensure smooth and reliable vehicle operation, which are essential to meeting rising consumer expectations for performance and longevity. For example, in March 2025, the European Automobile Manufacturers Association reported that global car sales reached 74.6 million units in 2024, a 2.5% increase compared to 2023. Consequently, the rapid growth of the automotive industry is fueling the transmission fluids market.

Major companies in the transmission fluids market are focusing on developing innovative solutions, such as low-viscosity EV transmission fluids, to enhance cooling efficiency, protect electric motors, and ensure durability in electric vehicles. Low-viscosity EV transmission fluids are specialized lubricants designed for electric motors that reduce electrical conductivity while efficiently managing high torque outputs, helping maintain optimal performance and longevity. For example, in August 2024, Castrol, a UK-based oil and gas company, launched Castrol ON EV Transmission Fluid W2 and W5, specifically engineered for electric vehicles with wet e-motors. These fluids enhance cooling and operational efficiency while providing improved protection for electric motors under demanding conditions.

In July 2025, Shell plc, a UK-based provider of integrated energy solutions including fuels, lubricants, chemicals, and energy transition technologies, acquired Raj Petro Specialities for an undisclosed sum. Through this acquisition, Shell aimed to strengthen and diversify its global lubricants and specialty oils portfolio by enhancing capabilities in high-value, application-specific products and expanding its presence in fast-growing industrial and consumer markets. Raj Petro Specialities Private Limited, based in India, supplies specialty oils and petroleum-derived products, including transformer oils, white oils, rubber process oils, and other specialty fluids to customers in the automotive, industrial, and power sectors.

Major companies operating in the transmission fluids market are BP PLC, Shell PLC, Exxon Mobil Corporation, Chevron Corporation, The PJSC Lukoil Oil Company, Afton Chemical Corporation, Amalie Oil Company, AMSOIL Inc., Ashland Global Holdings Inc., China National Petroleum Corporation, CITGO Petroleum Corporation, ConocoPhillips Company, FUCHS PETROLUB SE, Gazprom Neft PJSC, Gulf Oil International Limited, Idemitsu Kosan Co. Ltd., Indian Oil Corporation Ltd., JXTG Nippon Oil & Energy Corporation, The Lubrizol Corporation, Morris Lubricants, Motul S. A., Neste Oyj, PetroChina Company Limited, Petronas Lubricants International Sdn Bhd, The Phillips 66 Company, SK Lubricants Co. Ltd., TotalEnergies SE, Valvoline Inc., Warren Oil Company Inc., ZF Friedrichshafen AG.

Asia-Pacific was the largest region in the transmission fluids market in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the transmission fluids market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the transmission fluids market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The transmission fluids market consists of sales of continuously variable transmission fluid and other types. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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