Automotive Gears Market by Product Type (Planetary, Bevel, Rack Pinion, Hypoid, Others) and by Material (Metallic, Non-Metallic), Application (Transmission, Differential, Steering System, Other) - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits - Forecast 2024 – 2032

The Automotive Gear market is expected to experience substantial growth, with a projected increase from USD 36.07 billion in 2023 to USD 59.25 billion by 2030, reflecting a compound annual growth rate (CAGR) of 6.40% during the forecast period of 2023 to 2030. The market size of the Automotive Gear industry was valued at USD 33.9 billion in 2022. This growth can be attributed to factors such as heightened economic development, ongoing industrialization, and the rising demand for technologies that have a low carbon footprint.

Automotive Gear Market Trends

The role of the car gearbox system extends beyond simply transferring engine power to the wheels; it offers various additional advantages. Over the past three years, there has been an increased demand for automatic transmissions, particularly in emerging economies like India and China. While more than 90% of cars and trucks in the United States are equipped with automatic transmissions, drivers worldwide are increasingly opting for automatic transmissions. This trend is expected to continue even after the COVID-19 pandemic, providing a boost to the industry and generating strong sales.

The growing preference for automatic transmission vehicles can be attributed to the benefits they offer, including comfortable driving, efficient fuel consumption, versatile design, and excellent performance. According to General Motors Company, the demand for automatic transmission systems is anticipated to rise due to increasing environmental concerns and stringent fuel efficiency regulations. As a result, fewer vehicles with manual transmissions may be available in the market. Governments worldwide are incentivizing the sales of fuel-efficient and alternative fuel vehicles through incentives and tax breaks, further driving the market growth of automatic vehicle transmissions.

Furthermore, the Automotive Gear Market is primarily driven by the expansion of vehicle manufacturing and global sales. The market is also influenced by the growing sales of commercial vehicles such as trucks, tractors, and trailers. The adoption of lightweight and durable materials like aluminum and composites for gears is expected to gain popularity, leading to significant market growth during the forecast period. The demand for automatic automobile transmissions represents one of the fastest-growing advancements in the automotive sector, which, in turn, fuels the demand for automotive gears. The development of carbon fiber-reinforced plastic gears is projected to drive the revenue growth of the Automotive Gear market in the coming years.

Automotive Gear Market Segment Insights:

Automotive Gear Material Analysis
The segmentation of the Automotive Gear Market based on material comprises metallic and plastic. The metallic segment holds the majority share in the Automotive Gear Market due to its exceptional strength and durability, making it highly suitable for heavy-duty applications in the automotive industry. Furthermore, the growing demand for fuel-efficient and lightweight vehicles has led to the development of advanced metallic gears with enhanced performance capabilities, further strengthening the position of the metallic segment in the market.

Automotive Gear Product Type Analysis
The Automotive Gear Market is segmented based on product type, which includes planetary, bevel, helical, non-metallic, and other gears. Among these, the helical segment dominates the market. The increasing demand for smooth and quiet operation in automotive applications is a key driving factor for the growth of the helical gear segment. The angled teeth of helical gears enable greater contact between the gears, resulting in smoother and quieter operation compared to other types of gears.

Automotive Gear Vehicle Type Analysis
The segmentation of the Automotive Gear Market based on vehicle type includes passenger vehicles and commercial vehicles. The passenger vehicle segment holds the largest market share. The growing worldwide demand for passenger vehicles and the increase in passenger car production are the primary factors driving the dominance of this segment. Additionally, the rise in per capita income and urbanization has led to a surge in demand for passenger cars, further contributing to the growth of this segment.

Automotive Gear Regional Insights
The market analysis covers North America, Europe, Asia-Pacific, and Rest of the World regions. The Asia-Pacific region is projected to dominate the Automotive Gear Market due to the increasing demand for fuel-efficient vehicles and lightweight automotive components. The region benefits from its abundant raw materials, high manufacturing capabilities, and the manufacturers' focus on expanding their revenue, which will contribute to the market's growth. Among the countries in the Asia-Pacific region, China holds the largest market share, while the Indian market for Automotive Gear is experiencing the fastest growth.

Moreover, the market report includes a comprehensive study of major countries, including the United States, Canada, Germany, France, the United Kingdom, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe holds a significant market share in the Automotive Gear industry, primarily driven by the large consumer base for automobiles in the region. The market for automotive gears has witnessed growth, particularly in the commercial vehicle segment. The automotive industry in North America presents several opportunities for gear manufacturers and other vehicle parts suppliers, contributing to market growth. Among European countries, Germany has the largest market share in the Automotive Gear market, while the UK is experiencing the highest growth rate.
In North America, the market is projected to grow at the fastest compound annual growth rate (CAGR) from 2023 to 2032. This growth can be attributed to increasing awareness of a healthy life, nutrition, and rising per capita disposable income in the region.

Automotive Gear Key Market Players & Competitive Insights
Leading market players are making significant investments in research and development to expand their product portfolios, thereby driving further growth in the automotive gear market. These players are also undertaking various strategic initiatives to expand their global presence, such as launching new products, entering into contractual agreements, engaging in mergers and acquisitions, increasing investments, and collaborating with other organizations. In an increasingly competitive and dynamic market environment, cost-effective offerings are essential for survival and expansion in the automotive gear industry.

Manufacturing locally to reduce operational costs is a key business strategy adopted by manufacturers in the global automotive gear industry. This approach not only benefits clients but also helps in capturing a larger market share. In recent years, the automotive gear industry has witnessed significant advancements, resulting in notable benefits. Major market players, including Eaton, Linamar Corporation, NSK Ltd, Bharat Gears Ltd, Neapco Inc, Mitsubishi Group, Dana Holding Corporation, Robert Bosch GmbH, ZF TRW, GKN plc., and others, are actively investing in research and development activities to stimulate market demand.

GKN Ltd, a well-established British multinational company specializing in automotive and aerospace components, is undergoing a renovation that involves upgrading its training and development center and introducing an innovative showroom. This expansion is part of the company's strategy to strengthen its presence in the North American market.

Located in Detroit, Michigan, Axle & Manufacturing, Inc. specializes in manufacturing driveline and drivetrain components and systems for automobiles. Recently, AAM launched a new rebate program for its 8.6" gear sets, specifically designed for General Motors vehicles with a 10-bolt rear axle. The gear kit includes authentic side and pinion gears originally used in the vehicle's axle during its production.

Key Companies in the automotive gear market include
• BorgWarner (US)
• Schaeffler (Germany)
• Eaton (Ireland)
• Aisin Seiki (Japan)
• Magna (Getrag) (Canada)

Automotive Gear Industry Developments

August 2015: GKN Sinter Metals, a prominent market player, has recently unveiled the upgraded version of its facility in St Mary's, US. The facility enhancements encompass significant renovations to the training and development center and the introduction of a modern innovation showroom. These improvements align with the company's strategic goal of expanding its presence in the North American market.

November 2014: American Axle & Manufacturing (AAM) has introduced a new rebate promotion for its 8.6" gear sets, designed for various General Motors vehicles equipped with a 10-bolt rear axle. The gear kit includes the original side and pinion gears that were originally installed in the vehicle's axle during its manufacturing. AAM's initiative to offer this rebate promotion is aimed at expanding its market share and catering to customers globally.

Automotive Gear Market Segmentation:
Automotive Gear Material Outlook
• Metallic
• Plastic

Automotive Gear Product Type Outlook
• Planetary
• Bevel
• Helical
• Non-Metallic
• other

Automotive Gear Vehicle Type Outlook
• Passenger vehicle
• Commercial vehicle

Automotive Gear Regional Outlook
• North America
o US
o Canada
• Europe
o Germany
o France
o UK
o Italy
o Spain
o Rest of Europe
• Asia-Pacific
o China
o Japan
o India
o Australia
o South Korea
o Australia
o Rest of Asia-Pacific
• Rest of the World
o Middle East
o Africa
o Latin America