Automotive transmission market to reach $84.2 billion by 2028 with a 6.2% CAGR, fueled by electric/Hybrid vehicles and CVT tech.

The automotive transmission market is projected to grow from USD 62.4 billion in 2023 to USD 84.2 billion by 2028, with a CAGR of 6.2% during this period. Factors driving this growth include a shift towards automatic transmissions, increasing demand for fuel-efficient vehicles, and the rising popularity of electric and hybrid vehicles. Continuously Variable Transmissions (CVTs) are expected to be the fastest-growing segment due to their smooth gear shifts and fuel efficiency. Major car brands from Japan, South Korea, and China are offering CVT options in their popular models, and luxury sedans and SUVs are also incorporating CVTs for a more comfortable driving experience. The passenger car segment is predicted to be the largest segment in the market. The CVT technology is gaining popularity due to its adaptability, power delivery, compact design, reduced emissions, and consumer acceptance.