Continuously Variable Transmission Market Report 2026

The continuously variable transmission market size has grown steadily in recent years. It will grow from $22.11 billion in 2025 to $23.18 billion in 2026 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to fuel economy regulations, passenger vehicle production growth, adoption of automatic transmissions, urban driving demand, cost advantages over traditional automatics.

The continuously variable transmission market size is expected to see steady growth in the next few years. It will grow to $27.66 billion in 2030 at a compound annual growth rate (CAGR) of 4.5%. The growth in the forecast period can be attributed to electrification of drivetrains, hybrid vehicle adoption, lightweight transmission development, demand for low-emission vehicles, powertrain optimization. Major trends in the forecast period include increasing adoption in passenger cars, focus on fuel efficiency improvement, integration with hybrid powertrains, demand for smooth driving experience, advancements in cvt materials.

The growing production of automobiles is expected to propel the growth of the continuously variable transmission (CVT) market going forward. Automobile production encompasses the design, engineering, assembly, and quality assurance processes required to manufacture finished vehicles for distribution and sale. Growth in production is driven by advancements in manufacturing technologies, increasing demand for electric vehicles, automation, robotics, and globalized supply chains. Continuously variable transmissions play a key role in modern vehicles by improving fuel efficiency, driving comfort, and adaptability across various vehicle types and driving conditions. For instance, in 2023, according to the International Organization of Automobile Manufacturers (OICA), a France-based trade association, global motor vehicle production increased from 84.83 million units in 2022 to 93.55 million units in 2023. Therefore, the rising automobile production is driving the growth of the CVT market.

Leading companies in the continuously variable transmission (CVT) market are concentrating on developing innovative CVTs with improved efficiency for small and medium-sized front-wheel-drive vehicles. These CVTs are designed to boost fuel economy and enhance performance in compact and mid-sized front-wheel-drive cars. For example, in October 2023, Japan-based automatic transmission company JATCO Ltd. introduced the Jatco CVT-XS, a new CVT designed for small to medium front-wheel-drive vehicles. The CVT-XS offers 90% transmission efficiency and delivers a responsive, driver-focused acceleration experience. This launch supports JATCO’s strategy to enhance vehicle performance and fuel efficiency, aligning with the growing demand for low-emission vehicles.

In March 2024, Nissan Motor Corporation, a Japan-based automobile manufacturer, purchased Nissan shares from Renault Group for €358 million ($383.58 million). This strategic acquisition aims to deepen Nissan's integration of operations, streamline decision-making processes, and potentially amplify synergies in technology development, manufacturing efficiencies, and global market strategies. Renault Group, headquartered in France, is recognized for its production of models equipped with continuously variable transmission.

Major companies operating in the continuously variable transmission market report include Toyota Motor Corporation, Honda Motor Co. Ltd., Hyundai Motor Company, Robert Bosch GmbH, Kia Motors, Renault S.A., ZF Friedrichshafen AG, Aisin Corporation, Mazda Motor Corporation, Subaru Corporation, Geely Automobile, Nidec-Shimpo Corporation, Chery Automobile Co. Ltd., BorgWarner Inc., Peugeot S.A., Endurance Technologies Limited, Team Industries Inc., IAV GmbH, JATCO Ltd., Steyr Motors GmbH, Gaokin Industry Co. Ltd., Wanliyang Co. Ltd.

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

The continuously variable transmission market consists of sales of pulley-based continuously variable transmission, roller-based continuously variable transmission and hydrostatic continuously variable transmission. 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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