Automated Manual Transmission Market Expected to Reach $28.6 Billion by 2034

According to a new report published by Allied Market Research, titled, “Automated Manual Transmission Market," The automated manual transmission market size was valued at $17.4 billion in 2024, and is estimated to reach $28.6 billion by 2034, growing at a CAGR of 5.2% from 2025 to 2034.

An automated manual transmission is a semi-automatic gearbox that gives drivers the convenience of an automatic car without the complexity or cost of a traditional automatic transmission. AMT is built on a manual transmission platform but uses computer-controlled systems to handle clutch engagement and gear shifts. Drivers do not need to press a clutch pedal or change gears manually. AMTs are ideal for city driving where frequent gear changes are needed, offering a smooth ride with better fuel efficiency and lower maintenance than most automatics. Manufacturers often use AMT to offer automatic variants of budget-friendly vehicles.

Growing focus of consumers for increasing fuel efficiency & reducing emissions is one of the major factor driving the growth of the automated manual transmission industry. As fuel prices around the world continue to grow and governments are enforcing stricter emission standards, which resulted in automobile manufacturers to develop drivetrains that are both cost-effective and environmentally friendly. Automated manual transmissions offer a clear advantage in this situation, as they offer the mechanical efficiency of a regular manual gearbox but automate the gear shifting process, thus helping the engine run more efficiently and smoothly. This leads to better fuel economy compared to traditional automatic transmissions like torque converters or dual-clutch systems, which are often more complicated and require more fuel. Moreover, automated manual transmission have lower carbon emissions as compared to manual transmission, making them a smart option in price-sensitive markets. Additionally, as more and more countries are pushing towards sustainable and greener transportation, the demand for automated manual transmission market share are anticipated to continue to grow.

Additionally, automated manual transmission offers significant ease of driving in congested areas by eliminating the constant need for clutch engagement and manual gear shifting. This is especially beneficial in cities around the world with heavy traffic, such as Los Angeles, London, São Paulo, or Bangkok, where average driving speeds can drop below 15–20 km/h during peak hours. In such conditions, frequent stop and clutch movement can make driving a manual car physically tiring. Automated manual transmissions automate the clutch and gear-shifting movements, thus allowing drivers to simply operate the brake and accelerator pedals dramatically reducing fatigue during long haul commutes.

For instance, in cities like São Paulo, a daily commuter may experience over 150 gear changes in a single hour of rush-hour traffic. Automated manual transmission helps in automatically shifting gear, thus easing the burden on the driver. Vehicles equipped with AMT also often feature a creep mode, where car moves slowly forward when the brake is released, which is ideal in slow moving traffic, or while parking. Globally, the adoption of AMT technology in popular urban cities is growing. To tackle the growing demand for AMT, automakers are increasingly offering car variants equipped with automated manual transmission such as the Dacia Sandero in Europe and Suzuki Swift in Asia-Pacific markets which are witnessing high sales growth. The growing demand for convenience, affordability, and fuel efficiency will continue to drive the demand for automated manual transmission market size during the forecast period.

Unlike traditional automatic or dual-clutch transmissions which offer smooth ride, and allows for seamless transitions between gears, automated manual transmission often have a slight pause or jerk during gear changes, especially during acceleration or uphill driving. For instance, when overtaking on highways or merging into fast-moving traffic, the delay in gear response can lead to a momentary drop in power delivery, making the vehicle feel sluggish and underpowered. However, this delay in power can be acceptable in slow moving city traffic, but it is a major drawback in situations where swift and smooth power delivery is crucial.

Moreover, in premium vehicle segments or advanced countries with more developed road infrastructure, this lag can hinder the market growth especially for consumers expecting more sophisticated driving experience. As a result, despite being cost-effective and fuel-efficient, the shift lag in automated manual transmission has become a significant barrier for the growth of its market.

The global automated manual transmission market forecast is segmented into speed, vehicle type and region. Based on speed, the global market is segregated into 4 speed, 6 speed and 8 speed. On the basis of vehicle type, the market is analyzed into passenger vehicle and commercial vehicle. Region wise, the global market is analyzed into North America, Europe, Asia-Pacific, and LAMEA.

The key companies profiled in the research report include ZF Friedrichshafen AG, Aisin Corporation, Eaton Corporation, BorgWarner Inc., Hyundai Transys, AB Volvo, Detroit Diesel Corporation, Shaanxi Fast Auto Drive Group Co., Ltd, Mack Trucks, and Magna International Inc.

KEY FINDINGS OF THE STUDY

• By speed, the 6 speed segment is anticipated to exhibit significant growth in the automated manual transmission market analysis in the near future.
• By vehicle type, the passenger vehicle segment is anticipated to exhibit significant growth in the automated manual transmission market in the near future.