Passenger Car Automatic Transmission Market – Global Industry Size, Share, Trends Opportunity, and Forecast 2018-2028. Segmented By Vehicle Type (SUV, Sedan, Hatchback, MUV), By Fuel Type (Gasoline, Diesel, and Hybrid), by Type (Automatic Transmission/Torque Converter, Automated Manual Transmission, Continuously Variable Transmission, and Dual Clutch Transmission) By Region and By Competition
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 68.8 billion |
| CAGR (2023-2028) | 6.9% |
| Fastest Growing Segment | Passenger Car |
| Largest Market | North America |
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Market Overview
The Global Passenger Car Automatic Transmission Market size was USD 68.8 billion in 2022 and is anticipated to increase with a CAGR of 6.9% during the forecast period.
The Global Passenger Car Automatic Transmission Market is a critical element of the automotive sector, driven by a number of influential factors that together determine its profile and development.
Consumer Preference is at the forefront of propelling this market. Most consumers, especially in markets such as North America, Europe, and parts of Asia, have a heightened desire for vehicles that come with automatic transmissions. The reason behind this is the demand for easier driving experiences, particularly in dense city traffic. Automatic transmissions' convenience and user-friendliness have cemented their place in the market, hence becoming the car buyer's first choice. Technological Advances are constantly redefining the world of automatic transmissions. Innovations include different transmission types, like conventional torque converter automatics, dual-clutch transmissions (DCTs), and continuously variable transmissions (CVTs). These technologies are designed to improve fuel efficiency, driving comfort, and general vehicle performance. Automakers and transmission manufacturers are spending considerable amounts on research and development to bring in more efficient and responsive transmission technologies that meet changing consumer needs.
Emissions Regulations are another key driver. Tighter emissions regulations across the globe are forcing vehicle manufacturers to implement automatic transmissions in order to maximize engine performance, lower emissions, and meet tight environmental standards. Automatic transmissions play a key role in meeting emissions reduction targets, especially when combined with hybrid and electric powertrains. Urbanization and Traffic Congestion have been major drivers of the market. Urbanization in developing economies at a very rapid pace has caused traffic congestion in urban areas to rise. Automatics are preferred in these settings due to their ease of use during stop-and-go traffic. As urbanization grows, the popularity of automatics is also set to increase even more, particularly in populated areas.
Emerging Markets are experiencing significant market growth. Asia, Latin America, and Africa, especially, are seeing increasing incomes and urbanization, which are compelling consumers to opt for automatic transmission-equipped vehicles. Expansion of these emerging markets offers great opportunities for automakers and transmission suppliers to enter new markets and meet changing consumer tastes.
In summary, the Global Passenger Car Automatic Transmission Market is driven by consumer convenience preference, consistent technological innovation, stricter emissions requirements, the influence of urbanization and traffic, and the surging expansion of emerging markets. Together, these elements define the market's context and drive its continued expansion within the automotive industry.
Key Market Drivers
Consumer Demand for Convenience
Consumer interest in passenger vehicles with automatic transmissions is a major driver. Most automobile consumers prefer the convenience and ease of driving provided by automatic transmissions, especially in markets such as North America, Europe, and most of Asia. The consumer demand has, in turn, fueled a growing use of automatic transmissions in passenger vehicles.
Technological Developments
Ongoing improvements in automatic transmission technology play a key role in driving the market. These technological advances include different types of transmissions, such as conventional torque converter automatics, dual-clutch transmissions (DCTs), and continuously variable transmissions (CVTs). These technologies seek to improve fuel economy, driving comfort, and vehicle performance, addressing the changing needs of customers.
Stricter Emissions Regulations
Strict emissions standards globally are compelling carmakers to embrace automatic transmissions as part of their drive to maximize engine efficiency and lower emissions. Automatic transmissions are central to meeting emissions reduction goals, particularly when combined with hybrid and electric powertrains.
Urbanization and Traffic Congestion
Sudden urbanization in the developing economies has created more traffic jams in urban centers. Under these circumstances, automatic transmissions are preferred due to ease of driving through stop-and-go traffic. As more and more people move towards urban areas, demand for automatic transmissions will grow even further, especially in urban areas.
Emerging Markets
Asian, Latin American, and African emerging markets are witnessing huge market growth. Higher incomes and urbanization in these markets are stimulating consumers to purchase vehicles with automatic transmissions. These markets' expansion offers tremendous potential for automakers and transmission companies to access new consumer groups.
Fuel Efficiency and Performance
Automatic transmissions are a key factor in enhancing fuel efficiency and vehicle performance. The design of transmissions and control systems continues to advance and reduce energy losses, optimizing power transfer. This is particularly vital in achieving fuel efficiency requirements and providing a responsive driving experience.
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Integration with Hybrid and Electric Powertrains
Automatic transmissions play a more crucial role in electric and hybrid cars (EVs). They are designed to seamlessly integrate with electric powertrains, which adds to the general efficiency and performance of the car. This cooperation is consistent with the worldwide drive toward electrification.
Competitive Landscape
The competition within the automotive industry also pushes for the use of automatic transmissions. Auto manufacturers seek to make their automobiles stand out from others by providing high-tech transmission systems, like DCTs and CVTs, to suit the tastes of consumers and remain competitive in the industry.
The Global Passenger Car Automatic Transmission Market is driven by consumer demand, advancements in technology, emissions standards, urbanization, emerging economies, fuel efficiency and performance demands, integration with electrified powertrains, and competition. These drivers combine to spur the market's growth and expansion in the automotive industry.
Key Market Challenges
Cost Considerations
One of the foremost challenges is the cost associated with automatic transmissions. These systems are typically more expensive to manufacture and repair than manual transmissions, which can affect vehicle affordability. Automakers must strike a balance between offering automatic transmissions and maintaining competitive pricing.
Fuel Efficiency and Emissions Standards
Maintaining stringent fuel economy and emissions standards is an ongoing challenge. Automatic transmissions can improve fuel economy, but they need to constantly change to meet increasingly tight regulatory standards. This involves improving more efficient transmission designs and control systems.
Manual Transmissions' Competition
Manual transmissions have a niche existence in certain markets, and they have a following among a group of customers who believe in control and interaction with driving. The catch is that these customers need to be persuaded towards adopting automatic transmissions.
Electric and Hybrid Transitions
The. shift to electric and hybrid cars presents a challenge. Automatic transmissions must. be integrated with these new powertrains without a hitch while retaining. internal combustion engine compatibility. This. demands serious investments in research and development.
Transmission Efficiency
Improving transmission efficiency is a challenge. Automatic transmissions by design lose energy, and this affects fuel economy. Automakers must. keep. developing innovations to optimize the loss and enhance overall vehicle efficiency.
Durability and Reliability
Automatic transmissions involve intricate systems with many moving parts. To achieve their long-term durability and reliability is demanding. Malfunctioning or failures may result in expensive repairs and erode consumers' confidence in the technology.
Perception of Performance
There are some buyers who equate manual transmissions with greater performance and driving excitement. Busting this illusion and showing that automatics can offer just as satisfying a drive, particularly in high-performance vehicles, is one challenge car manufacturers face.
Adaptation to Emerging Markets
In emerging markets where manual transmissions are still prevalent, the challenge is to drive the adoption of automatic transmissions. This involves overcoming cultural and cost-related barriers and educating consumers about the benefits of automatic transmissions in congested urban environments.
In summary, the Global Passenger Car Automatic Transmission Market faces challenges related to cost, fuel efficiency, competition from manual transmissions, the transition to electric and hybrid vehicles, transmission efficiency, durability and reliability, the perception of performance, and adaptation to emerging markets. Successfully addressing these challenges is essential for the continued growth and relevance of automatic transmissions in the automotive industry.
Key Market Trends
Shift Towards Electrification
One of the key trends is incorporating automatic transmissions in hybrid and electric vehicles. Such transmissions are optimized for power transfer and efficiency to aid in the development of electric vehicles (EVs).
Use of Dual-Clutch Transmissions (DCTs)
DCTs are becoming more popular, especially for high-performance and luxury cars. Their quick and accurate gear changing improves driving performance and fuel economy. Manufacturers are more frequently putting DCTs in their products.
Continuously Variable Transmissions (CVTs)
CVTs remain a trend, particularly in midsize and compact passenger cars. CVTs provide a smooth power transmission and better fuel efficiency through an infinite number of gear ratios. They are gaining usage beyond their traditional markets.
Advanced Transmission Control Systems
Transmission control system advancements are making the shifting process smarter and more efficient. These systems can learn about road conditions and driving habits, providing better performance and fuel economy.
Fuel Efficiency Improvement
Automakers are continually striving to enhance the fuel efficiency of automatic transmissions. Advances in transmission design and materials, along with the application of advanced lubricants, are designed to minimize energy losses and maximize power transfer.
Lightweight and Compact Transmissions
Lightweight and compact automatic transmissions are playing an increasingly vital role in meeting fuel efficiency targets. These transmissions are engineered to reduce the space they take up without compromising performance and reliability.
Transmission Downsizing
Downsizing is the trend where auto manufacturers are switching to smaller, more efficient engines with automatic transmissions. Turbo technology and direct fuel injection technologies augment this trend by minimizing engine displacement without sacrificing performance.
Integration with Driver Assistance Systems
Automatic transmissions are being linked with driver assistance systems, like adaptive cruise control and semi-autonomous driving modes. These transmissions can be paired with these technologies to enhance vehicle control and safety. In short, the Global Passenger Car Automatic Transmission Market is seeing trends towards electrification, uptake of DCTs and CVTs, advanced transmission control systems, fuel efficiency improvement, lightweight and compact transmissions, transmission downsizing, and integration with driver assistance systems. These trends represent the industry's focus on performance improvement, efficiency, and the overall driving experience.
The world passenger car automatic transmission market has seen substantial trends and advancements over the last few years. One of the major trends is the increasing need for automatic transmissions compared to manual transmissions. The reason behind this trend can be linked to the rising demand for convenience and ease of driving, particularly in heavily populated urban centers. Automatic transmissions provide a smoother and less demanding driving experience, resulting in the increased use of automatic transmissions globally.
Another trend worthy of mention is fuel efficiency in automatic transmissions. Manufacturers are working to develop and incorporate sophisticated transmission technologies, including multi-speed and continuously variable transmissions (CVTs). These technologies seek to increase fuel efficiency with the performance and comfort required by customers. Moreover, the addition of electric and hybrid powertrains to passenger vehicles has spurred the innovation of dedicated automatic transmissions specific to these green cars. The shift to electric vehicles (EVs) has also influenced the automatic transmission industry. EVs have single-speed automatic transmissions or direct drives without the requirement for conventional multi-speed transmission. With EV adoption accelerating, the traditional automatic transmission market can expect to be reshaped somewhat.
Additionally, the automobile industry is also seeing the rise of advanced driver-assistance systems (ADAS) and autonomous driving technology. These need to be supported by highly advanced transmission systems that are capable of seamlessly communicating with sensors and computer networks in order to optimize vehicle control and safety.
The world passenger car automatic transmission market is changing to address the needs of consumers, regulators, and the automobile industry as a whole. The most important trends are the movement towards automatic transmissions, fuel efficiency focus, variant applications for electric and hybrid vehicles, and the integration of transmission systems with advanced driver assistance and autonomous technologies. These trends are framing the future of the passenger car automatic transmission market
Segmental Insights
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Segmentation by transmission type reveals key insights into market dynamics. Traditional torque converter automatic transmissions remain prevalent in many regions due to their reliability and familiarity. However, dual-clutch transmissions (DCTs) are gaining ground, particularly in high-performance and luxury vehicles, as they offer rapid gear changes and improved fuel efficiency. Continuously variable transmissions (CVTs) are preferred in compact and midsize passenger cars for their smooth power delivery and enhanced fuel economy. Segmentation by vehicle type highlights the preferences of different consumer segments. In this context, passenger cars dominate the market, reflecting the widespread adoption of automatic transmissions in this segment. However, automatic transmissions are also making inroads into other vehicle types, including SUVs, which are witnessing growing popularity worldwide. Moreover, the commercial vehicle segment, including buses and trucks, is exploring automatic transmissions to improve driver comfort and fuel efficiency.
Fuel type segmentation is increasingly relevant as the automotive industry undergoes electrification. Automatic transmissions are playing a vital role in hybrid and electric vehicles (EVs) by optimizing power transfer and enhancing efficiency. This segment underscores the importance of automatic transmissions in the transition to cleaner and more sustainable transportation options. Regional insights offer a nuanced view of market dynamics. In North America, automatic transmissions are the norm, with the United States leading in their adoption due to consumer preference for convenience. Europe exhibits a diverse landscape, with a strong presence of DCTs and CVTs, especially in high-performance and fuel-efficient vehicles. Asia-Pacific, including markets like China and India, showcases robust growth, driven by consumer demand for automatic transmissions in urban settings. Latin America is witnessing a shift toward automatic transmissions in passenger cars, while the Middle East and Africa exhibit varying preferences across regions.
The market is segmented by technology and innovation, highlighting advancements in transmission control systems and materials. This segment includes compact and lightweight transmissions, downsizing strategies, and advanced lubricants designed to reduce energy losses and improve fuel efficiency. Additionally, the integration of automatic transmissions with driver assistance systems forms a notable segment, where technology enhances vehicle control and safety. In conclusion, segmental insights in the Global Passenger Car Automatic Transmission Market encompass transmission type, vehicle type, fuel type, regional dynamics, and technological innovations. These segments provide a comprehensive understanding of market trends and consumer preferences, guiding manufacturers and suppliers in meeting evolving demands and preferences across diverse categories.
Regional Insights
North America, particularly the United States, stands out as a robust market for automatic transmissions. Consumer preference for convenience has driven the widespread adoption of automatic transmissions in passenger cars. Torque converter automatics remain prevalent, but there is a growing interest in dual-clutch transmissions (DCTs) and continuously variable transmissions (CVTs). The market's focus on fuel efficiency and performance aligns with technological advancements. Europe exhibits a diverse landscape for automatic transmissions. DCTs have gained popularity, especially in high-performance and luxury vehicles, as they provide quick gear changes and improved fuel efficiency. CVTs are favored in compact and midsize passenger cars for their smooth power delivery and enhanced fuel economy. Europe's strict emissions standards have spurred innovations in transmission technology.
The Asia-Pacific region, including countries like China and India, is a high-growth market for automatic transmissions. Rapid urbanization and traffic congestion have driven consumer demand for automatic transmissions in urban settings. China, in particular, has witnessed significant adoption of automatic transmissions in passenger cars. Additionally, this region plays a pivotal role in the integration of automatic transmissions with hybrid and electric vehicles (EVs). Latin America is experiencing a gradual shift toward automatic transmissions, primarily in passenger cars. While manual transmissions still have a presence, consumers are increasingly opting for the convenience of automatic transmissions. The market here is influenced by factors such as urbanization and changing consumer preferences.
The Middle East and Africa exhibit varying preferences for transmission types. The market dynamics are influenced by regional factors, including consumer preferences, road conditions, and infrastructure. Some regions favor manual transmissions, while others are gradually adopting automatic transmissions, particularly in passenger cars. In summary, regional insights in the Global Passenger Car Automatic Transmission Market reflect diverse market dynamics driven by consumer preferences, regulatory standards, and technological advancements. Each region presents unique opportunities and challenges for automakers and transmission suppliers, emphasizing the importance of a nuanced approach to cater to regional demands.
Recent Developments
- In September 2021, ZF Dongfeng Citroen, a brand ofDongfeng-Peugeot-Citroen Automobile Co., Ltd. (DPCA), launched its all-new C5 Xluxury crossover paired with an Aisin 8-speed automated manual transmission(AMT).
- In November 2022, Volkswagen-SAIC venture to close manual transmissionplant in China.
Key Market Players
- 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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