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Depends. If it is a serviceable transmission- Yes, it will break down over time as well as absorb moisture from the air. Older vehicles even have to have band adjustment specs. Refer to your owners guide, if you dont have a copy, the manufacturer's website should have the maintenance specifications available at no charge. Different types of fluids are not compatible, be sure to get the right type or you will damage your transmission.
Newer car's have non serviceable transmissions. Easy way to check is, if you don't have a dipstick the fluid is lifetime. These transmissions have solenoids that adjust line pressures in the transmission to adjust for wear(as the input/output shaft sensors detect slippage. When these transmissions doesn't work properly anymore more than likely, it needs to be rebuilt.
Just because the trans does not have a dipstick does not mean that the fluid never needs checked or changed. Check your owners manual for service schedules.
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