The dual clutch transmission market is expected to witness considerable growth by 2027 due to increasing focus towards improving fuel efficiency across the automotive sector. Additionally, dual clutch transmission offers several benefits, such as swifter gear change and higher fuel efficiency, which is speculated to further support market expansion through the forecast period.

Dual clutch transmission, also known as twin-clutch transmission or double-clutch transmission, is a type of automated manual transmission (AMT). While conventional manual transmission vehicles use a clutch and a clutch pedal, the dual clutch transmission includes two clutches and no clutch pedal.

Dual clutch transmission offers better fuel economy and higher performance compared to regular automatic transmission. Dual clutch transmission is known to combination of the convenience offered by automatic transmission and the efficiency of manual transmission. Due to such major benefits, product demand is proliferating across leading regions.

Moreover, industry participants are increasingly integrating dual clutch transmission into their vehicles. For instance, in April 2021, Hyundai Motor, a leading automobile manufacturer, announced that the Kona N SUV - its first high-performance SUV - would be equipped with an 8-speed wet-type dual-clutch transmission or an ???N DCT???.

The Kona N DCT is derived from a modified version of its in-house-developed 8DCT (8-speed wet-type dual-clutch transmission). The South Korean manufacturer has also enhanced the durability of 8DCT to cater to the requirements of high-performance vehicles. Apart from the 2022 Kona N, Hyundai also offers its N DCT technology on the Veloster N.

Additionally, manufacturers are providing customers with the option of getting a car with dual-clutch transmission, which is fostering industry outlook in key regions. Stringent government regulations to reduce environmental impact of vehicles and rising industry efforts to improve fuel economy are further bolstering market adoption across the globe.

For extensive analysis, the dual clutch transmission market has been categorized on the basis of clutches (dry and wet), vehicle (passenger car, commercial vehicle, and sports car), transmission (ICE and hybrid), distribution channel (OEM and aftermarket), and region.

In the regional landscape, the Latin America dual clutch transmission market is estimated to grow at a CAGR of over 5% through the forecast period owing to surging adoption of hybrid vehicles. Increasing stringency of government regulations pertaining to vehicle emissions is propelling the demand for hybrid vehicles across the region, which is projected to fuel regional market growth over 2021-2027.

The Middle East & Africa dual clutch transmission market is set to expand at a CAGR of around 3% over the assessment timeframe driven by the booming demand for high-end luxury cars in the region. Moreover, manufacturers of high-end luxury cars and sports cars are installing DCTs in cars to enhance vehicle performance, which is anticipated to foster regional market outlook through the projected timeline.