APAC Leads Automotive Gearbox Market Growth for 2025–30: Global Industry Driven by Electrification and Powertrain Innovation, Says Mordor Intelligence

Rising vehicle electrification, efficiency-focused powertrains, and demand for smooth transmission performance are fueling global automotive gearbox market.

Hyderabad , Oct. 17, 2025 (GLOBE NEWSWIRE) — Hyderabad, October 2025 – According to Mordor Intelligence, the automotive gearbox market, valued at around USD 70 billion in 2025, is projected to reach over USD 82 billion by 2030, growing at a steady pace of 3.18% CAGR. Growth remains moderate as automakers balance between complex multi-speed systems for conventional engines and simpler single-speed units for electric vehicles.  

Trends Influencing Market Growth 

OEMs Embrace Integrated Hybrid-Ready Transmission Technology 

Gearbox makers are focusing on modular designs that support both conventional and electrified powertrains, giving automakers flexibility across model ranges. This approach allows seamless hybrid integration while preserving the familiar driving feel, helping manufacturers stay compliant and cost-efficient as regulations tighten. 

Global Vehicle Production Surges, Driven by SUV and Pickup Demand 

The growing popularity of SUVs and pickup trucks is driving steady demand for high-performance multi-speed transmissions. Automakers are integrating advanced gearbox systems to enhance efficiency and meet performance goals, creating sustained opportunities for manufacturers worldwide. 

Gear-Shifting Logic Becomes Software-Defined with OTA Updates 

Modern transmissions now feature software-driven control systems that can be updated remotely, allowing automakers to fine-tune performance and efficiency even after production. These updates enhance driving experience, enable new digital services, and help detect potential issues early through predictive monitoring. 

Conventional Gear Sets Fade as BEV Adoption Surges 

Electric vehicles rely on simplified single-speed systems that replace complex multi-gear transmissions, reducing demand for traditional gearboxes. As Electric Vehicles adoption accelerates, suppliers are shifting focus toward integrated e-axles and smart driveline technologies to stay competitive in the evolving mobility landscape. 

Geographical Overview 

Asia-Pacific leads the market with growing demand supported by strong vehicle production in China and the increasing shift toward automatic systems in India. Japan and South Korea continue to strengthen the supply base with advanced gearbox technologies, while Southeast Asian countries expand low-cost manufacturing. North America benefits from its large SUV and pickup segments, driving consistent demand for high-performance transmissions. In Europe, emission goals and electrification targets push manufacturers to refine gearbox efficiency while balancing costs across major production hubs like Germany and Eastern Europe. 

Market Breakdown by Key Segments 

By Transmission Type 

  • Manual 
  • Automatic 
  • Automated Manual Transmission (AMT) 
  • Dual-Clutch Transmission (DCT) 
  • Continuously Variable Transmission (CVT) 

By Propulsion Type 

  • Internal Combustion Engine (ICE) 
  • Hybrid Vehicle 
  • Battery Electric Vehicles 
  • Plug-in Hybrid Electric Vehicles 
  • Fuel Cell Electric Vehicles 

By Vehicle Type 

  • Passenger Cars 
  • Light Commercial Vehicles (LCVs) 
  • Medium and Heavy Commercial Vehicles (MHCVs) 
  • Buses & Coaches 
  • Off-Highway Vehicles 

By Sales Channel 

  • OEM 
  • Aftermarket 

By Geography 

  • North America 
  • South America 
  • Europe 
  • Asia-Pacific 
  • Middle East & Africa 

Players in the Automotive Gear Box Industry 

  • Aisin Corporation 
  • ZF Friedrichshafen AG 
  • Magna International Inc. 
  • JATCO Ltd. 
  • BorgWarner Inc. 
  • Eaton Corporation 
  • Allison Transmission 
  • Continental AG 
  • Schaeffler Group 
  • Hyundai Transys Co. Ltd. 
  • Toyota Motor Corporation (Powertrain Div.) 
  • GKN Automotive Limited 
  • Punch Powertrain 
  • Valeo SA 
  • Xtrac Ltd. 
  • Dana Incorporated 
  • Treme Corporation 
  • Foma S.p.A. 

Industry Related Reports 

Automotive Anti Lock Braking System And Electronic Stability Control Market: The Automotive Anti-Lock Braking System (ABS) and Electronic Stability Control (ESC) Market is valued at USD 57 billion in 2025 and is projected to reach USD 85 billion by 2030, registering a CAGR of 8% during the forecast period. Market growth is fueled by increasing vehicle safety regulations, the growing adoption of advanced driver-assistance systems, and rising consumer awareness of road safety. The integration of ABS and ESC in both passenger and commercial vehicles enhances braking efficiency, stability, and overall vehicle control, supporting the shift toward safer mobility solutions worldwide. 

Automotive Gear Market : The Automotive Gear Market is valued at USD 4.9 billion in 2025 and is projected to reach USD 6 billion by 2030, registering a CAGR of 4.5% during the forecast period. Market growth is driven by increasing vehicle production, demand for fuel-efficient transmissions, and the growing penetration of electric and hybrid vehicles. Continuous advancements in gear design, materials, and manufacturing processes are improving performance, reducing noise, and enhancing durability, supporting the expansion of both OEM and aftermarket segments globally. 
https://www.mordorintelligence.com/industry-reports/automotive-gears-market?utm_source=Globenewswire

Automotive Airbags Market: The Automotive Airbags Market is valued at USD 27.98 billion in 2025 and is projected to reach USD 48 billion by 2030, registering a CAGR of 11.51% during the forecast period. Market growth is supported by stringent vehicle safety regulations, rising consumer demand for enhanced occupant protection, and the increasing installation of airbags across all vehicle categories. Continuous innovation in sensor technology and the integration of multi-stage and curtain airbags are further driving adoption, ensuring improved passenger safety and compliance with global crash safety standards. 

 About Mordor Intelligence:    
 
Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.    
    
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive market analysis and research reports as well as syndicated and custom research offerings that cover a wide spectrum of industries, including aerospace & defence, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. 

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