Automotive Gear Market

The rise in demand for automatic transmission (AT) is driving the market growth.

The car gearbox system serves more than just the straightforward function of transmitting engine power to the wheels; it also offers numerous other benefits. Demand for automatic automobile transmissions has increased in the last three years, particularly in growing economies such as India and China. Even though 90% or more of cars and trucks in the U.S. have automatic transmissions. Drivers worldwide are increasingly choosing automatic transmissions, expected to assist the industry and provide strong sales post the COVID-19 pandemic.

Increased desire for automatic transmission vehicles can be attributed to the advantages of automatic transmission, which include comfortable driving, efficient fuel use, versatile design, and outstanding performance. According to General Motors Company, demand for automatic transmission systems is expected to increase due to growing environmental concerns and stringent fuel-efficiency norms. This is because fewer automobiles with manual transmissions may be made accessible. Governments worldwide are attempting to increase the sales of fuel-efficient and alternative fuel vehicles through incentives and tax breaks, which are anticipated to increase the market CAGR for automatic vehicle transmission.

Additionally, the Automotive Gear Market is driven mainly by increased vehicle manufacturing and global sales. The market is also driving forward due to growing commercial vehicle sales, including trucks, tractors, and trailers. Lightweight and strong aluminum and composite gears are projected to become more popular, with a considerable market expansion during the forecast period. The necessity for automatic automobile transmission is one of the fastest-growing advancements in the automotive sector, increasing the demand for automobile gear. The development of plastic gears reinforced with carbon fiber is projected to propel the Automotive Gear market revenue market forward over the forecast period.

The increasing global shift towards electric vehicles (EVs) is a pivotal driver for the Global Automotive Gear Market Industry. As governments worldwide implement stricter emissions regulations, the demand for EVs is projected to rise significantly. This transition necessitates advanced gear systems that can efficiently manage electric power and torque. For instance, the global EV market is expected to contribute substantially to the automotive gear sector, with projections indicating that by 2035, the market could reach 69.7 USD Billion. This transition is likely to foster innovation in gear technology, enhancing performance and efficiency.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The Asia-Pacific Automotive Gear Market area will dominate this market; a growing need for fuel-efficient cars and lightweight automotive parts. Furthermore, because of their high processing capacity, ample raw materials, and the manufacturers' focus on expanding revenue will boost the market growth in this Region. Moreover, China’s Automotive Gear market held the largest market share, and the Indian Automotive Gear market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Automotive Gear Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Automotive Gear market accounts for the second-largest market share due to the vast consumer base of automobiles in the Region has helped the market of automotive gear to grow, especially in commercial vehicles. The growing car industry in North America offers several opportunities for manufacturers of gear and other vehicle parts. Further, the German Automotive Gear market held the largest market share, and the UK Automotive Gear market was the fastest-growing market in the European Region.

North America is expected to grow at the fastest CAGR from 2023 to 2032. This is due to expanding awareness of a healthy lifestyle and nutrition and rising per capita disposable income.

Leading market players are investing heavily in research and development to expand their product lines, which will help the automotive gear market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The automotive gear industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Automotive Gear industry to benefit clients and increase the market sector. In recent years, the Automotive Gear industry has offered some of the most significant medical advantages. Major players in the Automotive Gear market, including Eaton, Linamar Corporation, NSK Ltd, Bharat Gears Ltd, Neapco Inc, Mitsubishi Group, Dana Holding Corporation, Robert Bosch GmbH, ZF TRW, and GKN plc., and others, are attempting to increase market demand by investing in research and development operations.

GKN Ltd is a well-known British multinational company that specializes in manufacturing components for the automotive and aerospace industries. The renovation includes upgrading the training and development center and introducing an innovative showroom. The expansion is part of the company's strategy to grow its presence in the North American market.

Axle & Manufacturing, Inc., located in Detroit, Michigan, specializes in producing driveline and drivetrain components and systems for automobiles. Recently, AAM introduced a new rebate program for its 8.6" gear sets, which are meant for General Motors vehicles with a 10-bolt rear axle. The gear kit includes genuine side and pinion gears that were originally part of the axle when the vehicle was built.