The Automotive Gear market industry is projected to grow from USD 38.37 Billion in 2024 to USD 59.25 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.58% during the forecast period (2024 - 2032). Automotive Gear Market Size was valued at USD 36.07 billion in 2023. Increased economic growth, ongoing industrialization, and growing demand for low-carbon-footprint technologies are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
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.
Based on material, the Automotive Gear Market segmentation includes metallic and plastic. The dominant segment in the Automotive Gear Market is metallic, owing to their high strength and durability, which make them ideal for heavy-duty applications in the automotive industry. Moreover, the rising demand for fuel-efficient and lightweight vehicles has developed advanced metallic gears with even higher performance capabilities. This has further reinforced the position of the metallic segment in the market.
Based on product type, the Automotive Gear Market segmentation includes planetary, bevel, helical, non-metallic, and other. The helical segment dominated the market; the increasing demand for smooth and quiet operation in automotive applications is a key factor driving the growth of the helical gear segment. The helical gear's angled teeth allow more contact between the gears, resulting in smoother and quieter operation than other gear types.
The Automotive Gear Market segmentation, based on vehicle type, includes passenger and commercial vehicles. The passenger vehicle segment dominated the market; the increasing demand for passenger vehicles worldwide and the growth in the production of passenger cars are the key factors driving the dominance of this segment. In addition, the rising per capita income and the increasing urbanization have resulted in a surge in demand for passenger cars, which has further fueled the growth of this segment.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
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.
Source: Secondary Research, Primary Research, MRFR 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.
The second-generation Kodiaq, one of the new Skoda models to début in June 2023, has already commenced production. As Skoda maintains production of its profitable SUV in Kvasiny, the Czech automobile manufacturer has initiated the thorough modification of the assembly line. Already in production are the initial pilot production vehicles; series production is scheduled to begin the following year. Already in full swing are preparations for the forthcoming second iteration of our Kodiaq. Skoda, as is customary, is once more leveraging pre-existing infrastructure to seamlessly incorporate emerging technologies. Nevertheless, the task of fully integrating and enhancing the long-term viability of a functional assembly line is an exceedingly challenging undertaking, requiring substantial technical and logistical resources. Concurrently, we have effectively optimized and reallocated our model production, resulting in the liberation of supplementary capacity.
Rabat, November 2023: Neo Motors, a Moroccan automaker, is finalizing the "Neo," its first vehicle manufactured in Morocco, which is scheduled to debut on the domestic market this month. More than two hundred orders for the locally manufactured vehicle have been received by the company. Neo is distinguished by its vivid color palette, which pays tribute to a number of Moroccan cities. To illustrate, the yellow iteration symbolizes the vivid colors found in the houses and structures of Fez, whereas the red iteration pays homage to Marrakech, a renowned metropolis referred to as the "Red City." The green alternative is a nod to the Moroccan Atlas Mountains, whereas the white alternative draws inspiration from the wintry landscapes of Ifrane. A comprehensive array of features is complemented by the "Neo" automobile's convertible canopy and 350-liter trunk. The industrial unit established by Neo Motors in Ain Aouda, Rabat-Sale-Kenitra, serves as the location of the production core.
| Attribute/Metric | Details |
| Market Size 2023 | USD 36.07 billion |
| Market Size 2024 | USD 38.37 billion |
| Market Size 2032 | USD 59.25 billion |
| Compound Annual Growth Rate (CAGR) | 5.58% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Material, Product Type, Vehicle Type, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Eaton, Linamar Corporation, NSK Ltd, Bharat Gears Ltd, Neapco Inc, Mitsubishi Group, Dana Holding Corporation, Robert Bosch GmbH, ZF TRW, and GKN plc |
| Key Market Opportunities | Economic growth and ongoing industrialization, which helps in the production of motor vehicles and other manufacturing output |
| Key Market Dynamics | Growing demand for low-carbon-footprint technologies |
Frequently Asked Questions (FAQ) :
The Automotive Gear Market size was valued at USD 36.07 Billion in 2023.
The global market is projected to grow at a CAGR of 5.58% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are Eaton, Linamar Corporation, NSK Ltd, Bharat Gears Ltd, Neapco Inc, Mitsubishi Group, and Dana Holding Corporation.
The Helical Automotive Gear category dominated the market in 2023.
The Passenger vehicle had the largest share in the global market.
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