Automotive Gearbox Global Market Report 2025

The automotive gearbox market size has grown strongly in recent years. It will grow from $72.78 billion in 2024 to $77.97 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to the shift toward premium and luxury vehicles, the increasing preference for fuel-efficient automobiles, the rising interest in sustainable transportation solutions, the expansion of ride-sharing and mobility services, and the growth of commercial vehicle fleets.

The automotive gearbox market size is expected to see strong growth in the next few years. It will grow to $101.62 billion in 2029 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to government incentives promoting electric vehicle (EV) adoption, the global push toward carbon neutrality, increasing demand for automatic transmissions, rising consumer preference for smoother driving experiences, and the growing popularity of hybrid vehicles. Major trends in the forecast period include the integration of artificial intelligence in transmission systems, the development of advanced dual-clutch transmissions, technological advancements in continuously variable transmissions (CVTs), a shift toward multi-speed transmission designs, and the emergence of gearboxes specifically engineered for electric vehicles.

The increasing adoption of electric vehicles is expected to propel the growth of the automotive gearbox market going forward. Electric vehicles are automobiles that operate on electricity stored in rechargeable batteries, using electric motors instead of conventional fuel-powered engines. The adoption of electric vehicles is increasing due to rising environmental awareness, as consumers and governments aim to reduce carbon emissions and reliance on fossil fuels to promote a cleaner and more sustainable future. An automotive gearbox enhances electric vehicle performance by efficiently managing torque and speed output, providing smoother acceleration, better energy utilization, and improved performance under diverse driving conditions. For instance, in April 2024, according to the International Energy Agency (IEA), a France-based intergovernmental organization, electric car sales rose by 3.5 million in 2023 compared to 2022, marking a 35% increase from the previous year. Therefore, the increasing adoption of electric vehicles is driving the growth of the automotive gearbox market.

Key companies operating in the automotive gearbox market are focusing on developing advanced solutions such as automated manual transmission trucks to minimize maintenance costs by reducing clutch and transmission wear compared to fully manual systems. Automated manual transmission trucks use a manual gearbox controlled by an electronic system that automatically manages clutch operation and gear shifting, combining the fuel efficiency of a manual transmission with the convenience of an automatic. For instance, in November 2024, Tata Motors, an India-based automobile manufacturer, launched the Tata Prima 4440.S AMT, an automated manual transmission truck in the Kingdom of Saudi Arabia. It features a robust automated manual transmission designed for high reliability and efficient power delivery across demanding applications. Its strong drivetrain and components ensure smooth torque management, even under heavy loads or in challenging terrains. Smart transmission technologies such as Load Based Speed Control, Shift-Down Protection, and Vehicle Acceleration Management optimize performance and ease driver workload. Combined with a modern and comfortable cabin, the gearbox improves both driver comfort and operational efficiency.

In June 2025, Allison Transmission, a US-based provider of commercial-duty automatic transmissions and powertrain solutions, acquired Dana Incorporated’s off-highway business for $2.7 billion. The acquisition enables Allison Transmission to expand its powertrain and drivetrain solution portfolio while strengthening its presence in the global industrial and off-highway vehicle markets. Dana Incorporated is a US-based manufacturer of automotive gearboxes.

Major players in the automotive gearbox market are Toyota Motor Corporation, Honda Motor Co. Ltd., Continental AG, ZF Friedrichshafen AG, Magna International Inc., Aisin Corporation, Hyundai Powertech Company Limited, Valeo SA, Eaton Corporation Plc, Schaeffler AG, Mitsubishi Motors Corporation, BorgWarner Inc., JTEKT Corporation, Dana Incorporated, GKN Automotive Limited, Voith GmbH & Co. KGaA, Allison Transmission Holdings Inc., Ricardo Plc, Punch Powertrain NV, Xtrac Limited, JATCO Ltd.

Asia-Pacific was the largest region in the automotive gearbox market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in automotive gearbox report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the transport sector, particularly in fleet maintenance and logistics operations. Higher duties on imported commercial vehicles, tires, and engine components have increased operational costs for trucking and freight companies, forcing them to raise shipping rates or reduce margins. Airlines and maritime shippers face similar pressures, with tariffs on aircraft parts and shipbuilding materials driving up capital expenditures. Additionally, retaliatory tariffs in key export markets have reduced demand for U.S.-made transportation equipment, further straining revenue streams. The sector must now prioritize fuel efficiency, alternative sourcing, and automation to offset rising expenses while maintaining service reliability.

The automotive gearbox market research report is one of a series of new reports that provides automotive gearbox market statistics, including automotive gearbox industry global market size, regional shares, competitors with a automotive gearbox market share, detailed automotive gearbox market segments, market trends and opportunities, and any further data you may need to thrive in the automotive gearbox industry. This automotive gearbox market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

An automotive gearbox is a mechanical system in a vehicle that transfers power from the engine to the wheels while allowing control over speed and torque. By offering multiple gear ratios, it adjusts the engine’s output to suit driving conditions, ensuring efficient acceleration, improved fuel economy, and smooth operation.

The primary types of automotive gearboxes include manual transmission, automatic transmission, automated manual transmission, continuously variable transmission (CVT), dual-clutch transmission (DCT), and others. Manual transmissions require the driver to engage gears manually using a clutch pedal and gear lever. These gearboxes are used in various vehicle categories, including passenger cars, light commercial vehicles (LCVs), medium and heavy commercial vehicles (MHCVs), buses and coaches, and off-highway vehicles. They are distributed through original equipment manufacturers (OEMs) and the aftermarket, serving both on-road and off-road applications.

The countries covered in the automotive gearbox market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive gearbox market consists of sales of gear shafts, synchronizer rings, torque converters, and transfer cases. 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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