Continuous Variable Transmission Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Type:

Based on the type, the market is segmented into hydrostatic, toroidal, cone, variable geometry, and variable diameter

Trends in the type:

• Continuous variable transmission enhances fuel efficiency by continuously modifying the gear ratio to maintain optimal engine speed, resulting in decreased emissions and lower fuel expenses.
• Continuous research and development are yielding advancements transmission technology, including greater durability, reduced noise, and enhanced performance.

The hydrostatic segment accounted for the largest revenue in the year 2024 and is expected to register the highest CAGR during the forecast period.

• The growing demand for heavy machinery and equipment in construction projects has elevated the market for hydrostatic transmissions, which are widely utilized in construction equipment such as loaders, bulldozers, and excavators.
• Hydrostatic transmissions offer several advantages over other transmission types, including improved fuel efficiency, effective power delivery, and smoother operation, thereby making them an attractive choice for construction companies.
• For instance, Bosch’s multispeed transmission concept aimed at applications in electric vehicles, which is designed to fulfil performance requirements for a broader audience. This solution offers economic and performance advantages in electric powertrains while ensuring a smooth driving experience.
• These factors and developments would further drive the continuous variable transmission market size during the forecast period.

By Product:

Based on the product, the market is segmented into belt and pulley transmission and chain-driven transmission.

Trends in the product:

• The vehicle transmission systems are optimal for hybrid and electric vehicles, enhancing their efficiency and performance. This trend benefits both chain and belt-driven transmission systems
• Manufacturers are prioritizing weight reduction in transmission technology to boost fuel efficiency and overall vehicle performance, applicable to both product types.

The chain-driven segment accounted for the largest revenue share of 57.80% in the year 2024.

• Chain-driven transmissions use a metal chain to transmit power from the engine to the wheels, providing strong performance and durability. They are commonly selected for heavy-duty applications and high-performance vehicles, where reliability and efficiency in power transmission are essential.
• Chain-driven transmissions are preferred in contexts where strength and torque capacity are vital, such as in trucks and SUVs.

The belt and pulley transmission segment is anticipated to register the fastest CAGR during the forecast period.

• Belt-and-pulley transmissions utilize a system of belts and pulleys to smoothly adjust the gear ratio, enhancing acceleration and fuel efficiency. This type of continuously variable transmission is frequently used in passenger vehicles due to its lightweight construction and affordability.
• Belt-and-pulley transmissions are superior in delivering a smoother driving experience and improved fuel economy, making them well-suited for compact and hybrid cars.
• The growing emphasis on fuel efficiency and lower emissions is propelling the adoption of advanced belt and pulley systems that reduce power losses and enhance engine efficiency.
• The worldwide rise in vehicle production, especially in emerging markets, is generating significant demand for automotive components, such as belt and pulley systems.
• For instance, in March 2021, Gates launched X9 synchronous drive belt. This belt is specifically engineered for two-wheelers, such as electric motorcycles and scooters and internal combustion motorcycles. The belt is also more robust and reliable than competing synchronous belts, providing OEMs the potential for more compact, lightweight drivetrain packaging and improved vehicle performance.
• These factors would further supplement the continuous variable transmission market trends during the forecast period.

By Capacity:

Based on the capacity, the market is segmented into Up to 1.5 L, 5 L to 3.0 L, and above 3.0 L.

Trends in the capacity:

• High-performance vehicles and larger SUVs require a combination of power and efficiency. Continuously variable transmissions provide seamless power delivery while ensuring favorable fuel economy.
• The growing demand for compact and subcompact cars in emerging markets significantly driving the global market.

Up to 1.5 L segment is dominating the market and is expected to register the highest CAGR during the forecast period.

• Up to 1.5 L category typically includes compact and subcompact vehicles, where fuel efficiency and cost-effectiveness are crucial. Variable transmission in this segment is preferred for their capability to enhance engine performance in smaller displacement vehicles, providing smooth acceleration and improved fuel economy, which resonates with the needs of budget-conscious consumers and urban commuters.
• For 1.5 L capacity, continuous variable transmission is generally simpler and less costly to produce than traditional automatic transmissions with multiple gears. This results in reduced production costs for automakers.
• These factors would further supplement the continuous variable transmission market during the forecast period.

By Fuel Type:

Based on the fuel type, the market is segmented into gasoline, diesel, and hybrid.

Trends in the fuel type:

• Stringent government regulations focused on minimizing fuel consumption and emissions are propelling the advancement of more efficient transmissions across various fuel types.
• Consumers are placing greater emphasis on fuel economy and performance, leading to increased requirement for vehicles featuring advanced transmission systems.

Gasoline segment accounted for the largest revenue share in the year 2024.

• Vehicles that operate on gasoline comply with nearly all pollution standards. Furthermore, they are more efficient and produce fewer toxic emissions than diesel vehicles. The increasing need for gasoline in key markets, including India, China, and the US, further drives growth in the automotive transmission market for the gasoline sector.
• Consumers in this segment prioritize smooth and refined driving experiences. Continuously variable transmissions and modern automatic transmissions excel in delivering seamless shifts and enhanced drivability.
• For instance, in July 2024, Allison Transmission announced the partnership with Cummins, to test and validate the X15N 15 litre natural gas engine, which is paired with Allison’s 4000 Series fully automatic transmission. The series transmission is engineered to enhance both performance and fuel efficiency. When combined with the X15N, the 4000 Series offers further fuel savings and emissions reductions for fleets, while lowering the total cost of vehicle ownership and supporting corporate social responsibility goals.
• These factors and development would further supplement the global market during the forecast period.

Diesel segment is anticipated to register the fastest CAGR during the forecast period.

• The growth of the segment can be attributed to the heightened dependence on diesel engines in heavy-duty vehicles and industrial applications, where high power output and fuel efficiency are essential.
• The automotive transmission industry is capitalizing on this trend, as manufacturers are focused on developing advanced diesel transmission systems aimed at improving performance and minimizing emissions. Additionally, the development of transportation infrastructure, especially in emerging markets, is further stimulating the need for diesel fuel.
• These factors would further supplement the global market during the forecast period.

By Transmission Type:

Based on the transmission type, the market is segmented into manual and automatic.

Trends in the transmission type:

• As automakers transition towards electrification to adhere to environmental regulations and meet evolving consumer preferences, there is a significant rise in the development of specialized transmission systems tailored for electric powertrains. These systems are crucial for maximizing energy efficiency and performance in electric vehicles (EVs) and hybrids.
• The increasing popularity of EVs and progress in battery technology are anticipated to fuel considerable development in the automotive transmission sector as manufacturers pursue innovative solutions that improve vehicle capabilities while tackling sustainability issues.

Automatic segment accounted for the largest revenue share in the year 2024.

• The prevalence of automatic transmissions can be traced to the increasing consumer preference for their ease of use and convenience, particularly in urban driving environments. As drivers prioritize comfort and efficiency, manufacturers are placing greater emphasis on the advancement of automatic transmission technologies.
• Further, the incorporation of intelligent technologies into automatic systems is anticipated to improve performance and attract tech-oriented consumers. This trend is expected to persist, further solidifying the automatic segment's leadership in the market.
• For instance, in November 2024, Skoda Volkswagen group has started manufacturing 8-speed automatic transmission, which will be enter in the market by 2026. The new automatic transmission will assist Skoda-VW in complying with the upcoming CAFÉ III norms in India by lowering emission levels. This speed transmission provides improved performance and efficiency. Its closely spaced gear ratios facilitate smooth shifts, minimizing power loss and optimizing fuel consumption. Consequently, this reduces CO2 emissions.
• These factors and development would further supplement the global market during the forecast period.

Manual segment is anticipated to register the fastest CAGR during the forecast period.

• The rebound in global motor vehicle production reflects a positive trajectory for the market. As automotive output accelerates, driven by rising consumer preferences and advanced manufacturing techniques, the adoption of cost-effective manual transmissions is expected to grow, particularly in developing regions. Manual gearboxes remain a preferred choice for their affordability, simplicity, and adaptability across diverse vehicle segments.
• Manufacturers are focusing on scaling up production of manual transmissions to meet the needs of both domestic and export markets, further contributing to segment growth.
• These factors would further supplement the global market during the forecast period.

By Vehicle Type:

Based on the vehicle type, the market is segmented into passenger vehicles and commercial vehicles.

Trends in the vehicle type:

• The competitive landscape for vehicle transmission system manufacturers is anticipated to become more intense, driven by continuous research and development initiatives aimed at product differentiation and market expansion.
• Rapid advancements in automobile transmission manufacturing, along with consumers' increasing need for a comfortable driving experience, will drive the automotive transmission industry during the forecast period. Additionally, lightweight transmission systems reduce vehicle weight, ensuring compliance with stringent emissions and fuel efficiency standards. The growing acceptance of AMT coincides with the rising popularity of autonomous vehicles.

passenger vehicle segment accounted for the largest revenue share in the year 2024.

• The passenger vehicle segment progress is fuelled by continual advancements in automotive technology, especially in transmission systems that improve vehicle performance and comfort.
• The rising popularity of automatic transmissions, such as CVTs and DCTs, has played a significant role in contributing the trend, as consumers are increasingly opting for these options due to their efficiency and user-friendliness.
• Moreover, passenger cars account for the highest revenue segment in production and sales volume, resulting in a greater need for automotive transmissions compared to other vehicle segments. As the automotive market progresses, the passenger car segment is anticipated to sustain its dominant position throughout the forecast period.
• These factors would further supplement the global market during the forecast period.

commercial vehicles segment is anticipated to register the fastest CAGR during the forecast period.

• The commercial vehicles segment progression can be attributed to the rising need for heavy commercial vehicles (HCVs) driven by increased global manufacturing and infrastructure activities. As economies grow, the need for efficient transportation solutions to support supply chains and logistics becomes more significant.
• Furthermore, advancements in automotive transmission technology, especially in automatic and automated-manual transmissions, are improving the performance and fuel efficiency of HCVs. This development is anticipated to draw more investments and innovations in the automotive transmission industry, further accelerating the development of commercial vehicles segment.
• These factors would further supplement the global market during the forecast period.