Automotive Transmission Repair Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Automotive Transmission Repair Market Size

Automotive Transmission Repair Market Trends & Growth Drivers

Technological Advancement in Auto Repairs Is Key Market Trend

• Innovations such as advanced diagnostic tools, shift-by-wire technology, continuously variable transmission, integration of artificial intelligence, and enhanced transmission materials, are a key market trend.
• Modern vehicles are equipped with advanced electronic control units (ECUs), which monitor the transmission performance. Technicians can use the data generated by these modern tools for repairs.
• Additionally, the shift-by-wire technology is replacing the traditional mechanical links between the gear and transmission, which increases the structural complexity of the powertrain and drives the need for repairs.
• Advanced transmission systems, such as dual-clutch and continuously variable transmissions (CVTs), increase the complexity of the repair services, thus pushing up prices.

Growing Demand for Used Vehicles Is Driving Market

• As per estimates, the global used car market value could cross USD 3.7 trillion by 2030.
• The higher affordability of used vehicles in comparison to new ones makes the former a more-suitable choice for users.
• However, these vehicles need regular repair and maintenance for ensuring longevity and enhanced performance. Since the transmission is an important part of automobiles, this growing trend propels the growth of the market.
• Countries with a low per capita income offer great opportunities for used vehicle dealerships. The increase in the sales of second-hand automobiles will directly lead to a higher demand for repairs, especially for the transmission, which garages focus on strongly as part of the refurbishments.
• Furthermore, the proliferation of online platforms, such as Carvana, Quikr, CarDekho, CarTrade, and OLX, for used vehicles drives sales with their simpler process of buying and selling.
• Moreover, these platforms highlight the fact that extensive vehicle inspections have been carried before the model is put on sale, further propelling the market for transmission repair services.

High Cost of Repair and Replacement Challenges Market Growth

• The main challenge in the market growth is the high cost of repair and replacement.
• The average expenses on transmission repair are USD 165 to USD 290. For high-performance vehicles, this cost increases significantly as they come with complex transmission systems, which require advanced repair and maintenance systems and skills.
• This high cost is majorly due to the fewer trained technicians in the market than required and the high price of the parts themselves.
• Additionally, with the advancement in automotive technologies, more-complex transmissions are being installed in automobiles.
• It is becoming increasingly difficult to find technicians and garages equipped with the skills and tools required for the repair process.
• Drivetrains are becoming increasingly complex due to the integration of cutting-edge sensors, control boards, and communication modules, which makes repair and replacement costlier.

Automotive Transmission Repair Market Analysis

Component

• Oil pumps hold the largest market share in 2024, as they are used in both manual and automatic transmission systems.
• The rising production of modern vehicles equipped with advanced transmission systems drives the demand for the repair and replacement of oil pumps. These modern vehicles are required with more-advanced oil pumps, further driving the category’s growth.
• Clutch Plates will grow at the highest CAGR during the forecast period. This can be because of the increasing awareness among consumers of vehicle longevity. As a result, vehicle owners are increasingly focusing on maintenance of clutch plates.
• Clutch plates are an most essential component of the vehicle transmission system, connecting the transmission to the engine. The frequent gear shifting, especially in the dense urban traffic, necessitates regular maintenance.

The following components have been covered:

• Gaskets & Seals
• Transmission Filters
• Gears
• Clutch Plates (Fastest-Growing Category)
• Oil Pumps (Largest Category)
• Others

Repair Type

• Transmission general repair services dominate the market in 2024, with around 70% market share. They are basic services, such as fluid leak, fluid contamination, and solenoid failure detection and clutch adjustment. They are the most common transmission issues, which is the key reason for the dominance of its category.
• Additionally, these services are cost-effective and less time-consuming, which is why they are sought on a regular basis.
• The demand for transmission overhauls will grow at the higher CAGR, of 3.4%, during the forecast period. Over buying a new transmission, getting it overhauled costs less.
• Additionally, a complete transmission overhaul is a reliable way to keep vehicles running longer and with the desired fuel efficiency.

The repair type segment has the following categories:

• Transmission General Repair (Larger Category)
• Transmission Overhaul (Faster-Growing Category)

Vehicle Type

• Passenger vehicles hold the larger market share of, 60%, in 2024. This is due to the large number of passenger vehicles across the globe, which require regular checkups and maintenance.
• As per the OICA, of the more than 97.7 million automobiles sold in 2023, more than 65 million were passenger vehicles.
• The commercial vehicles bifurcation will grow at the higher CAGR during the forecast period. The demand for transmission repairs for commercial vehicles is rising due to their increasing usage in the logistics and public transportation industries.
• These vehicles require regular maintenance and repair due to the heavy loads they carry and the long distances they travel at once.
• As per OICA, global sales of commercial vehicles rose to 27,452,301 units in 2023 from 24,226,493 units in 2022.

The following vehicle types are part of the research scope:

• Passenger Vehicles (Largest Category)
• Commercial Vehicles (Fastest-Growing Category)
  • Light commercial vehicles
  • Heavy commercial vehicles

Regional Analysis

• North America is the largest regional market, with a share of around 40% in 2024 due to the large number of vehicles in the region and its established transportation and logistics industries.
• Furthermore, the advanced automotive technologies used in the region create the necessity for regular maintenance and repairs.
• APAC will grow at the highest CAGR during the forecast period. The region is witnessing rampant urbanization, which is driving vehicle sales in India, South Korea, Japan, and China.
• Additionally, a large number of people in these countries are buying used vehicles, which are extensively refurbished, thus driving the growth of the market in the particular region.
• From USD 5,621.4 million, the Indian used car market has the potential to grow to USD 12,417.6 million by 2030.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Automotive Transmission Repair Market Share

• The nature of the automotive transmission repair market is fragmented due to the large number of players across the globe, such as AAMCO and Cottman. Several local players, including auto dealers, also provide such services.
• Additionally, it is easy to enter the market as the maintenance process is not really difficult.
• Further, in developing countries, a huge number of small, unorganized businesses conduct repairs, usually observing little safety protocols.

Automotive Transmission Repair Market News

• In October 2024, the FAG repair insert unit was introduced by Schaffler Group. The new repair unit allows for wheel bearing repairs on truck, trailer, and bus axles. This could potentially reduce diesel consumption and drive down the resulting carbon dioxide emissions.
• In September 2024, Schaeffler Group introduced a new repair kit for the Hyundai Ioniq electric to replace damaged bearings in its e-axle motor.
• In September 2024, Allison Transmission Holdings Inc. and Cummins Inc. entered into a strategic collaboration to integrate Cummins’ B-series engine with the Allison eGen Flex electric hybrid propulsion system. This partnership is designed to enable compliance with the Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3 of the EPA, starting in 2027.
• In January 2024, a strategic partnership was announced by Allison Transmission Holdings Inc. and Sany Heavy Industry Co., Ltd. Under this, Allison will supply SANY with its Wide Body Dump Series and Off Road Series of transmissions for the SANY SKT105 line of wide-body mining dump trucks, rigid dump trucks, and articulated dump trucks.