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Continuously Variable Transmission Market

Continuously Variable Transmission Market

The market for Continuously Variable Transmission was estimated at $21.0 billion in 2024; it is anticipated to increase to $29.6 billion by 2030, with projections indicating growth to around $39.5 billion by 2035.

Report ID:DS2001104
Author:Swarup Sahu - Senior Consultant
Published Date:February 2025
Datatree
Automotive & Transportation
Automotive & Mobility
Continuously Variable Transmission
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Report Summary
Table of Contents
Methodology
Market Data

Global Continuously Variable Transmission Market Outlook

Revenue, 2024

$21.0B

Forecast, 2034

$37.3B

CAGR, 2024 - 2034

5.9%
The Continuously Variable Transmission industry revenue is expected to be around $22.2 billion in 2025 and expected to showcase growth with 5.9% CAGR between 2025 and 2034. The sustained prominence of the Continuously Variable Transmission (CVT) in the global automotive market is primarily driven by its superior fuel efficiency, smoother ride experience, and increased demand for technologically advanced vehicles. This systems ability to infinitely vary its gear ratio makes for a seamless semblance of acceleration, lending itself to a smooth driving experience sought by modern consumers globally. Increasing environmental concerns and stringent automobile emission standards have compelled manufacturers to invest in CVT, further propelling its relevance and significance in the modern vehicle landscape. Coupled with the ongoing advancements in hybrid and electric vehicle technologies, the CVTs market position is solidly protected.

A Continuously Variable Transmission operates on the principle of constant variable gear ratios, eliminating the need for discrete gear shifts characterized by traditional transmission systems. This innovative technology ensures optimal engine performance, enhancing fuel efficiency and reducing CO2 emissions. Primarily employed within the automotive industry, CVT is seen in a variety of vehicles, from compact cars to high-performance sports cars, and even off-road vehicles.

Continuously Variable Transmission market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034

Market Key Insights

  • The Continuously Variable Transmission market is projected to grow from $21.0 billion in 2024 to $37.3 billion in 2034. This represents a CAGR of 5.9%, reflecting rising demand across Automotive Industry, Personal Mobility Devices and Agricultural Machinery.
  • The market leaders in this sector include Audi AG and Subaru Corporation and Nissan Motor Co. Ltd. which determine the competitive dynamics of this market.
  • U.S. and Japan are the top markets within the Continuously Variable Transmission market and are expected to observe the growth CAGR of 3.8% to 5.7% between 2024 and 2030.
  • Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 6.8% to 8.1%.
  • The Electrification Revolution will drive $2.2 billion in additional market expansion for Continuously Variable Transmission systems by 2030.
  • The Continuously Variable Transmission market is set to add $16.3 billion between 2024 and 2034, with manufacturer targeting Shaft & Control Module Component projected to gain a larger market share.
  • With Automotive industry growth, and Technological advancements in cvt, Continuously Variable Transmission market to expand 77% between 2024 and 2034.
continuously variable transmission market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Continuously Variable Transmission

The rapidly evolving automotive industry is a breeding ground for technological innovations. Manufacturers are constantly seeking ways to improve fuel efficiency, reduce emissions, and enhance driving dynamics. In this context, continuously variable transmission can significantly benefit from technological innovations that provide better control over gear ratios, ensure seamless power delivery, and offer optimal fuel economy.

Growth Opportunities in North America and Europe

North America Outlook

The North American automotive sector presents a significant demand for Continuously Variable Transmission technology. The primary push factors for the uptake of this technology are higher fuel efficiency, emission control initiatives, and advanced vehicular performance requirements. The United States and Canada are the key markets, displaying strong adoption rates due to their progressive industrial growth and technological advancements in the automotive industry. High competition from market leaders, including Honda and Nissan, effectively shapes the market dynamics. Its crucial to note that consumer preference towards automatic transmissions over manual versions positively influences market development and increases opportunities for CVT expansion in this region.

Europe Outlook

The European region is known for its sophisticated approach towards automotive technology and harbours a robust market for Continuously Variable Transmission. Strong drivers include the regions stringent environmental regulations and fuel economy standards, necessitating the adoption of more fuel-efficient technologies. This requirement results in a steady demand for CVTs, primarily in high-end automotive markets like Germany, France, and the UK. The competitive landscape is shaped by prominent car manufacturers like Audi and BMW pushing for integration of this technology in their vehicles. Moreover, as Europe hosts some of the worlds best auto races, the need for high-performance vehicles increases the prospects for CVT systems, further expanding theindustry'sgrowth potential here.

Market Dynamics and Supply Chain

01

Driver: Automotive Industry Growth, and Stringent Emissions Regulations

The global automotive market has also been witnessing steady growth over the past few years. This progress has also advanced the demand for more efficient powertrain technologies like Continuously Variable Transmission . The CVTs capability to improve fuel efficiency, vehicle performance, and driving comfort, making it an ideal fit for the expanding automotive sector. As the push for fuel efficiency and lower emissions continue to rise, the adoption of CVTs is also expected to follow suit. Governments worldwide are also enforcing stringent emissions standards to reduce the environmental impact of the automotive industry. This growing regulatory pressure has also accelerated the demand for fuel-efficient transmissions like CVTs. By providing a smoother, more fuel-efficient ride, continuously variable transmissions help automakers comply with these standards, driving the growth of the CVT market.
Technological advancements in continuously variable transmissions are also driving market growth. Innovations in CVT design and function, such as the introduction of electronic CVTs , have also improved the transmissions durability and efficiency. The increased demand for smooth driving experience and improved fuel efficiency, mainly in hybrid vehicles, has also complemented the use of ECVTs.
02

Restraint: High Maintenance Costs

Despite being renowned for their smooth power distribution and fuel efficiency, Continuously Variable Transmissions are also notorious for their high maintenance costs. These costs often stem from wear-and-tear of transmission belts, which typically requires professional assistance, thereby increasing the operational costs of using vehicles with CVT. The resulting high cost is seen as a significant challenge in market growth, as potential customers often prefer traditional transmissions due to their lower maintenance expenses.
03

Opportunity: Growth in Developing Markets and Adoption in Electric Vehicles

Moving forward, developing countries such as India and China offer tremendous growth opportunities for continuously variable transmission. As economies flourish and disposable incomes increase, the demand for vehicles, particularly automobiles with advanced features and superior driving dynamics, is surging. Continuously variable transmission, known for its seamless operation and driving comfort, can certainly tap into these markets for substantial growth.
The advent of electric vehicles has revolutionized the automobile industry. For continuously variable transmission, this presents a significant.As electric vehicle manufacturers strive to increase efficiency and driving comfort, the use of advanced transmission technologies becomes paramount. The integration of continuously variable transmission in electric vehicles can result in smoother energy transmission, reduced energy loss, and enhanced overall performance.
04

Challenge: Complex Technological Requirements

To produce Continuously Variable Transmissions, manufacturers require advanced technical expertise and sophisticated production processes. The intricate nature of CVTs design and functioning principles poses as a challenge to manufacturers who wish to capitalize on the benefits of this technology. This leads to a restrained expansion of the CVT market, as the high production costs and expertise required tend to reduce the competitiveness of CVT-equipped vehicles when contrasted with those featuring traditional systems.

Supply Chain Landscape

1
Raw Material Suppliers

Sumitomo Corporation

Rio Tinto

2
Parts Manufacturers

Bosch Auto Parts

Schaeffler Group

3
Assembly Line & Vehicle Manufacturers

Audi

Nissan

Toyota

4
End Users

Automobile Industry

Public Transportation Sector

Commercial Vehicle Sector

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Continuously Variable Transmission in Automotive Industry, Personal Mobility Devices & Agricultural Machinery

Automotive Industry

Continuously Variable Transmission holds a significant place in the automotive industry. The traditional transmission system often uses automatic or manual, whereas the CVT provides a seamless acceleration without gear change. Notably, Nissan and Subaru are some of the market leaders employing CVT to deliver high-end performance vehicles, leveraging their market position

Personal Mobility Devices

In the mobility device sector, CVT offers superior torque and smoother acceleration. The variable gear ratio in CVT makes it a preferred choice for power scooters and mobility aids, with notable players like Drive Medical and Invacare incorporating CVT into their designs

Agricultural Machinery

CVT usage significantly stands out in agricultural machinery, such as tractors and harvesting machines. The stress-free operation and fuel efficiency offered by CVT aid in the long hours of monotonous work. Major industry players, like John Deere, leverage CVT technologies to consolidate their market base

Industrial Equipment

Industrial machines, especially those needing constant speed variation, also widely use CVT. Its continuous smooth shifting feature helps enhance machine lifespan and reduce maintenance requirements. Leaders in this market segment, including Bosch Rexroth, significantly utilize CVTs in their equipment manufacturing processes.

Recent Developments

December 2024

Honda Motor Company introduced an advanced Continuously Variable Transmission system specifically developed for their hybrid vehicles, aiming at improving fuel efficiency without compromising performance

November 2024

Toyota Motor Corporation announced their collaboration with Bosch and Siemens Auto Technologies to develop an innovative Continuously Variable Transmission system that significantly reduces carbon emissions

September 2024

German automotive component manufacturer, ZF Friedrichshafen AG, introduced a novel Continuously Variable Transmission system that optimizes power delivery and improves vehicle acceleration.

The Continuously Variable Transmission has undergone significant innovation in recent years, particularly in the automobile industry. This advanced technology offers smoother acceleration, enhanced fuel efficiency, and an overall improved driving experience, in comparison to traditional automatic transmission systems. One significant trend driving the CVT markets growth is the escalating demand for fuel-efficient vehicles.

Impact of Industry Transitions on the Continuously Variable Transmission Market

As a core segment of the Automotive & Mobility industry, the Continuously Variable Transmission market develops in line with broader industry shifts. Over recent years, transitions such as Electrification Revolution and Propulsion of CVT in NonAutomotive Sectors have redefined priorities across the Automotive & Mobility sector, influencing how the Continuously Variable Transmission market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Electrification Revolution

The automotive industry is seeing a radical shift from traditional mechanical systems to electrically powered systems, and Continuously Variable Transmission is no exception to this trend. Electrification is driving the evolution of CVTs, with manufacturers increasingly integrating CVT systems into hybrid and electric vehicles. The benefits related to maximized fuel efficiency, smoother operation, and reduced CO2 emissions make CVTs a promising solution in attaining sustainability goals. As electric vehicles continue their march towards market dominance, the demand for CVTs is expected to rise, making this transition a driving force shaping the future of the CVT market. This industry transition is expected to add $2.2 billion in the industry revenue between 2024 and 2030.
02

Propulsion of CVT in NonAutomotive Sectors

From an industry predominantly dominated by automotive applications, CVT technology is finding its way into nonautomotive sectors such as the industrial sector and power equipment. This shift can be attributed to the flexibility and versatility provided by CVTs.

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