Automotive Gear Market

Automotive Gear Market Outlook (2024 to 2034)

Revenue from the global automotive gear market is analyzed to increase from US$ 4.88 billion in 2024 to US$ 8.5 billion by the end of 2034. Sales of automotive gear systems are evaluated to rise at 5.7% CAGR from 2024 to 2034.

Vehicle sales directly influence the expansion of this market. Shift to costlier and more energy-efficient components, like seven-speed and eight-speed automatic transmissions, stands as another driving force behind the expansion of the automotive sector.

The market for gear systems covers a variety of gear types that are crucial for power transmission and motion regulation in vehicles. This segment is generating significant demand owing to escalating vehicle production, enhanced fuel economy, and a heightened focus on performance.

Integration of Internet of Things (IoT) technologies into gear systems is a key automotive gear market trend. Smart gears equipped with sensors provide real-time insights into wear, performance, and maintenance needs, thereby enhancing vehicle efficiency and minimizing downtime. In addition, adoption of 3D printing in gear manufacturing and prototyping is gaining traction. This technology enables the rapid production of custom gears with intricate geometries, reducing both development time and costs.

Key Market Growth Drivers

• Growing demand for fuel-efficient vehicles and portable automotive components is influencing market growth.
• With an escalating number of passengers and increased vehicle production, there is a surge in the use of automotive gear. The rising desire for enhanced acceleration and reduced carbon emissions from automobile engines is fueling the expansion of the automotive gear market size.
• Limited lifespan of traditional gear systems necessitates the production of advanced gears offering a combination of durability and performance.
• Popularity of aluminum and composite gears, valued for their lightweight nature and exceptional durability, is projected to rise, with their market share expanding significantly during the forecast period.
• Continual investments in research and innovation by established automotive gear manufacturers aim to enhance vehicle efficiency and minimize carbon emissions.
• As automated transmissions increasingly overshadow manual counterparts, there is a growing demand for advanced gear systems.
• Innovative gear technologies, such as dual-clutch transmissions (DCTs) and continuously variable transmissions (CVTs), are essential for the seamless and efficient operation of automatic transmissions.
• Advanced materials like high-strength steel and composites are being increasingly integrated into gear production to support the automotive industry's pursuit of enhanced efficiency and sustainability. These materials offer superior performance, reduced weight, and enhanced durability, aligning with the industry's objectives.

Report Attribute	Detail
Automotive Gear Market Size (2024E)	US$ 4.88 Billion
Forecasted Market Value (2034F)	US$ 8.5 Billion
Global Market Growth Rate (2024 to 2034)	5.7% CAGR
East Asia Market Share (2024E)	30.7%
North America Market Value (2024E)	US$ 901.3 Million
Spur Gears Segment Value (2034F)	US$ 1.94 Billion
Commercial Vehicles Segment Value (2034F)	US$ 6.46 Billion
Key Companies Profiled	Eaton Corporation; Bharat Gears Limited; GKN Plc., Inc.; Altra Industrial Motion Corporation; Showa Corporation; American Axle and Manufacturing, Inc.; Linamar Corporation; NSK Limited; Univance Corporation.

How are Advanced Manufacturing Processes Driving Adoption of Automotive Gear?

“Focus on Advancements Offering Reliable Automotive Components of High Quality”

Technological advancements in materials and gear production are enhancing vehicle performance and fuel efficiency. Creation of lightweight, high-strength gears is reducing overall vehicle weight, thereby improving handling and fuel economy.

Precision forging and computer-aided design (CAD) are two examples of advanced manufacturing processes that enable the production of durable and accurate gears, enhancing power transmission efficiency and smoothness. By meeting the growing demand for reliable automotive components of high quality, these developments improve car efficiency and performance, thus driving automotive gear market growth.

What are the Challenges Faced by Automotive Gear Manufacturers?

“High Initial Investment and Resistance from Those Using Conventional Gear Systems”

Direct drive motors and electric propulsion systems represent two emerging alternative transmission technologies posing challenges to market growth. These alternatives are gaining traction over traditional gear systems due to their enhanced efficiency, reduced complexity, and lower maintenance requirements. For instance, direct drive motors, eliminating the need for intricate gears, are utilized in electric vehicles, facilitating smoother and more efficient power transmission.

Country-wise Insights

East Asia and South Asia & Pacific are leading regional markets for automotive equipment. With rising car manufacturing in developing countries such as India and China, along with manufacturers' emphasis on expanding manufacturing capability, demand for automotive gear is projected to increase at a steady pace over the forecast period.

Why is Demand for Specialized Automotive Gear Showing an Upward Trend in Japan?

“Heavy Investments in Production of Electric and Hybrid Vehicles”

Attribute	Japan
Market Value (2024E)	US$ 307.6 Million
Growth Rate (2024 to 2034)	7.5% CAGR
Projected Value (2034F)	US$ 634.6 Million

Demand for specialized automotive gear is experiencing a notable upsurge, driven by Japan's substantial investments in electric and hybrid vehicles (HEVs). Given the unique performance requirements of electric and hybrid drivetrains, these vehicles necessitate specialized gear systems.

With the expanding market for EVs and HEVs fueled by consumer demand for fuel efficiency and eco-friendliness, advanced and high-performance gears are increasingly indispensable. As manufacturers strive to meet the evolving demands of the electric and hybrid car sector, this growth not only fosters the advancement of new gear technologies but also stimulates sales.

What’s Contributing to Escalating Demand for Automotive Gears in the United States?

“High Car Ownership Rates and Focus on Consistent Gear Production”

Attribute	United States
Market Value (2024E)	US$ 612.9 Million
Growth Rate (2024 to 2034)	5.3% CAGR
Projected Value (2034F)	US$ 1.03 Billion

The United States, ranking among the top countries for car ownership globally, is boosting demand for automotive gear systems. With millions of passenger cars, trucks, and commercial vehicles traversing its roads, there is an obvious increase in gear system usage. High vehicle density necessitates automotive gears for both maintenance and manufacturing purposes. Meeting the operational needs of this extensive fleet requires a robust supply chain and consistent production of top-notch automotive gear.

Category-wise Insights

Based on product type, the market is segmented into worm gears, bevel gears, spur gears, helical gears, rack & pinion gears, planetary gears, and hypoid gears. The spur gear segment is estimated to hold a substantial automotive gear market share in 2024. Demand for rack & pinion gears is projected to rise at 7.2% CAGR through 2034.

Which Automotive Gear Type Do Vehicle Manufacturers Prefer?

“Ease of Use and Ability to Handle Heavy Loads Boosting Adoption of Spur Gears”

Attribute	Spur Gears
Segment Value (2024E)	US$ 1.08 Billion
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 1.94 Billion

The spur gears segment is poised to account for 22.1% of the market share in 2024. Spur gears are becoming more popular in the market for the automobile industry because of its effectiveness, ease of use, and capacity for heavy loads.

Spur gears are cost-effective to produce and are well-suited for various automobile applications, including steering systems, gearboxes, and mechanical power transmission systems. They are favored by many automobile manufacturers due to their straightforward design and reliable performance.

Why are Automotive Gears Extensively Used in Commercial Vehicles?

“Need for Robust and Durable Gear Systems for Effective Handling”

Attribute	Commercial Vehicles
Segment Value (2024E)	US$ 4.62 Billion
Growth Rate (2024 to 2034)	3.4% CAGR
Projected Value (2034F)	US$ 6.46 Billion

Due to the demanding nature of their operations, commercial vehicles have a substantial requirement for automotive gear. Robust and durable gear systems are imperative for vehicles like buses and trucks to handle heavy loads and frequent stop-and-go traffic effectively. Gears play a crucial role in the transmission and drivetrain of these vehicles, providing the necessary torque and power transfer to meet rigorous operational demands. Primarily, the expansion of the logistics and transportation sector is fueling demand for commercial vehicles, consequently driving the increased need for automotive gear.

Competitive Landscape

Key players in the automotive gear market are making significant R&D investments to broaden their product offerings, contributing to growth in sales. Also, some companies are engaging in a range of strategic endeavors aimed at broadening their worldwide reach.

Some developments in the market include the introduction of innovative products, mergers and acquisitions, and increased investments. In an increasingly competitive market, automobile gear businesses need to provide affordable products to grow and thrive.

• ZF announced the integration of the MICO Brand and new products at MINExpo 2021 in September 2021. The company also introduced several new products, along with the Redulus4F Industrial Gearbox Series and Advanced Serviceability Solutions.
• In August 2021, with 33% improved torque ratings and power ratings, NORD Gear Corporation unveiled the most recent iteration of its CLINCHER parallel gear line.
• JATCO introduced a new continuously variable transmission "CVT-X" for medium and large FWD vehicles in June 2021, with enhanced environmental efficiency and drivability. It is claimed to have obtained a transmission efficiency of more than 90%, which was previously thought unrealistic for a CVT.
• In May 2021, American Axle & Manufacturing Inc. and REE Automotive announced a collaboration to design a new electric propulsion device for e-mobility.

Fact.MR provides detailed information about the price points of key suppliers of automotive gears positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Automotive Gear Market Research

• By Product Type :

  • Worm Gears
  • Bevel Gears
  • Spur Gears
  • Helical Gears
  • Rack & Pinion Gears
  • Planetary Gears
  • Hypoid Gears

• By Vehicle Type :

  • Passenger Cars
  • LCVs
  • Trucks
  • Buses
  • Off-Road Vehicles
  • Two-Wheelers

• By Application :

  • Engines
  • Drive Shafts
  • Transmissions
  • Differential
  • Steering Systems

• By Material :

  • Metallic
  • Non-Metallic

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa