BorgWarner expects new direct-shifting gearboxes to account for 18 percent of the transmissions in new European cars by 2010.
The supplier's estimate came as it revealed the first customers for its version of the technology, which it calls DualTronic automated transmission.
DualTronic will be launched on the Volkswagen Golf R32 this month, and will also be fitted to the 3.2-liter version of the Audi TT.
The technology allows a manual transmission to perform like an automatic transmission, while offering significantly improved fuel economy compared with conventional automatic transmissions, say BorgWarner executives.
BorgWarner expects to win another two customers for the new technology in Europe this year.
Valeo and ZF Sachs are expected to introduce competing products using similar technology.