Automotive Gears Market Expected to Reach USD 10.27 Billion by 2032 with Over

Automotive Gears Market Expected to Reach USD 10.27 Billion by 2032 with Over 6.58% CAGR

Status: Published Category: Automotive Parts Insight Code: 1057 Format: PDF / PPT / Excel

Overview

The automotive gears market was valued at USD 5.79 billion in 2023 and is expected to reach USD 10.27 billion by 2032, growing a CAGR of over 6.58% during the forecast period.

Automotive Gear Market Size 2023 - 2032

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The recent COVID-19 pandemic has significantly impacted the automotive industry, leading to a decline in car demand due to quarantines and travel restrictions. This downturn has slowed the growth of automotive products across all sectors over the past two years. Prolonged shutdowns in major manufacturing countries such as the United States, Germany, Italy, the UK, and China have disrupted production and equipment sales. The closure's potential long-term effects remain uncertain, posing challenges to financial recovery and necessitating adjustments to investment plans.

Despite these challenges, long-term trends indicate increasing automobile production globally, driving growth in the automotive glass industry. Innovations in automotive technology, such as smoother shifting and improved acceleration, contribute to market expansion. Gears play a critical role in car engines, influencing torque, speed, and power direction. However, the automotive industry's evolution, including the shift towards electric vehicles, poses obstacles to the growth of the glass market, as electric cars require fewer gears and consume less energy.

Nevertheless, factors such as the demand for fuel-efficient vehicles and automotive accessories continue to drive market growth. The Asia-Pacific region is poised to lead the automotive glass market, given its status as a major automobile manufacturing hub. Europe and North America are also expected to experience growth, driven by increasing demand for passenger and commercial vehicle lighting and ongoing research and development efforts aimed at enhancing vehicle performance and reducing carbon emissions.

Growing Demand of Electric Vehicle Likely to Hinder Market Growth During Forecast Period

The global electric vehicle (EV) market is experiencing rapid growth, with projections indicating that by 2040, approximately 54% of new car sales and 33% of global vehicle sales could be electric. To meet these targets, the European government has initiated various projects aimed at establishing regional pricing structures for EVs.

While traditional automotive markets such as Western Europe, Japan, and the United States are expected to grow at a slower pace, continued expansion into new markets will contribute to overall revenue growth for automakers. The automotive market in middle-income developing countries is anticipated to grow more rapidly, driven by increased demand from higher-income consumers. Urbanization and rising living standards worldwide, with over 54% of the global population residing in cities according to the United Nations (UN), are creating opportunities for expansion in the automotive sector, consequently driving growth in the global automotive glass market.

International and regional electric vehicle manufacturers are leveraging new technologies to innovate and expand their services globally.

For Instance,

  • China's BYD has established a significant presence in Europe, particularly in the electric bus market, with initiatives such as a new factory in Hungary, plans for a factory in France, and a joint venture for electric bus production in the UK.
  • Daimler has formed partnerships with the Chinese government to boost electric vehicle production in China, aligning with its future mobility strategy. The company is actively promoting electric vehicles worldwide, with a strong focus on China, the largest market for new energy vehicles globally.

Electric vehicles offer high energy efficiency, with fewer components such as the drive and differential, resulting in the virtual elimination of the gearbox and a reduction in the number of gears required.

Asia-Pacific is Expected to Dominate the Market during Forecast Period

Automotive Gear Market NA, EU, APAC, LA, MEA Share, 2023

The Asia-Pacific region, particularly China, is poised to lead the automotive glass market, driven by robust demand for automotive products in the region. With countries like India and China witnessing continued growth in automobile production and manufacturers focusing on expanding their capacities, the demand for automotive parts is expected to escalate further. For instance, China is projected to annually sell approximately 80 million electric vehicles in the near future, highlighting the region's significance in the automotive sector.

Moreover, the growing preference for energy-efficient vehicles and lightweight auto parts is fueling market expansion. Additionally, there is a rising trend towards lightweight and durable materials such as aluminum and glass composites, which are anticipated to witness increased adoption during the forecast period. For example, products like NORD's SK 920072.1 two-stage helical bevel gear motor, when coupled with NORD motors, offer a suitable drive solution for various applications in lighting, manufacturing, and other industries. Renowned for their high strength and lightweight design, such innovations are expected to further drive market growth across the Asia-Pacific region in the foreseeable future.

Automotive Gear Industry Overview

  • In June 2021, JATCO made a significant announcement regarding the introduction of their latest innovation, the "CVT-X," a continuously variable transmission specially engineered for medium and large front-wheel drive vehicles. This transmission aims to enhance both performance and environmental sustainability, boasting an impressive efficiency rating exceeding 90%, which is considered remarkable for CVT technology.
  • ZF, another major player in the automotive sector, revealed plans for a substantial investment of $200 million in its North American transportation business. Commencing operations in 2023, ZF intends to manufacture the ZF Powerline 8-speed automatic transmission at its cutting-edge production facility located in Graycourt, South Carolina. Additionally, ZF secured a substantial contract valued at approximately $6 billion in July 2021, solidifying its dedication to the North American market. This contract entails the supply of axles and transaxles for trucks until 2027, underscoring ZF's steadfast commitment to its North American operations.
  • March 2019 marked a significant milestone for Dana Incorporated as it successfully completed the acquisition of Oerlikon's Automotive Division. This strategic move significantly expands Dana's technological capabilities, particularly in the realm of high-precision helical gears, catering to the diverse needs of both light-duty and commercial automotive applications.

Automotive Gear Market Leaders

  • American Axle & Manufacturing Holdings Inc.
  • AmTech International
  • Bharat Gears Ltd
  • Cone Drive
  • Dynamatic Technologies Limited
  • Franz Morat Group
  • GKN PLC
  • Gleason Plastic Gears
  • IMS Gear SE & Co. KGaA
  • Robert Bosch GmbH
  • RSB Global
  • Showa Corporation
  • Taiwan United Gear Co. Ltd
  • Universal Auto Gears LLP
  • ZF Friedrichshafen AG

Automotive Gear Market Recent Developments

  • In September 2021, ZF unveiled its plans for integrating the MICO brand and introducing new products at MINExpo 2021. Among the highlights were the next-generation Redulus4F industrial gearbox series and advanced management utilizing the ProVID maintenance system. ZF also emphasized the establishment of an extensive global support network, ensuring prompt analysis and efficient repair services.
  • In May 2021, American Axle & Manufacturing Inc (AAM) and REE Automotive announced a collaborative effort to develop innovative electrical systems for electric vehicles (EVs). The partnership aims to capitalize on AAM's comprehensive capabilities, particularly in NVH (Noise, Vibration, and Harshness) reduction, by integrating AAM's lightweight and efficient next-generation electric drive with REE's high-speed inverter technology.
  • April 2021 marked a significant milestone with the business integration of Aisin Seiki and Aisin AW Co., Ltd., aimed at bolstering their competitiveness in the CASE (Connected, Autonomous, Shared, Electric) market segment. This strategic move, which also involved Toyota, resulted in the formation of a new entity named Aisin Co., Ltd., with Aisin Seiki emerging as the surviving company post-merger.
  • In February 2021, American Axle Manufacturing (AAM) announced the acquisition of axles and drivetrains specifically tailored for the 2030 2500 and 3500 Ram heavy-duty trucks, demonstrating its commitment to providing cutting-edge solutions for the evolving automotive landscape.

Automotive Gear Industry Segmentation

An automotive gear is a mechanical component consisting of teeth that engage with another toothed component or gear, enabling the transmission of torque. Gears play a crucial role in altering the torque, speed, and direction of the power generated by the vehicle's engine.

Market Segmentation

By Position

  • Skew Shaft Gears
    • Hypoid Gears
    • Worm Gears
  • Intersecting Shaft Gears
    • Straight Bevel Gears
    • Spiral Bevel Gears
  • Parallel Shaft Gears
    • Spur Gears
    • Rack and Pinion Gears
    • Herringbone Gears
    • Helical Gears

By Material

  • Ferrous Metals
  • Non-ferrous Metals
  • Other Materials (Composites and Plastics)

By Application

  • Steering Systems
  • Differential Systems
  • Transmission Systems
  • Manual
  • Automatic

By Geography

  • North America
    • United States
    • Canada
    • Rest of North America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Rest of Europe
  • Asia Pacific
    • India
    • China
    • Japan
    • South Korea
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East and Africa
    • South Africa 
    • Rest of Middle East and Africa

About The Author

Adriel Mergulhao is a distinguished professional renowned for his expertise in consulting, market research, and primary market analysis. With over the year of experience, Adriel has solidified his position as a senior solution advisor, providing invaluable insights to numerous clients across diverse industries. His proficiency in primary market research methodologies allows him to uncover deep-seated consumer preferences and trends, empowering businesses to make strategic decisions confidently.

Adriel's strategic insight and analytical prowess have earned him a reputation for delivering actionable recommendations that drive business growth and profitability. He has a proven track record of success in translating market insights into tangible results, making him a sought-after advisor in the competitive market research landscape. Adriel's dedication to excellence and commitment to client success underscore his position as a trusted expert in the field.

FAQ's

The automotive industry utilizes various types of gears, including spur gears, helical gears, bevel gears, worm gears, and planetary gears. Each type serves specific functions such as transmitting power, changing speed or direction, and torque multiplication in different automotive systems such as transmissions, differential assemblies, and powertrains.

The rise of electric and hybrid vehicles has led to significant shifts in the automotive gear market. Traditional internal combustion engine (ICE) vehicles typically employ multi-speed transmissions with complex gear arrangements, whereas electric and hybrid vehicles often utilize single-speed transmissions or direct-drive systems. This trend influences gear design, manufacturing techniques, and materials used to accommodate the unique characteristics and requirements of electric and hybrid powertrains.

Material selection is critical in automotive gear design to ensure durability, efficiency, and weight reduction. Common materials used for gears include steel, cast iron, aluminum alloys, and advanced composites. Manufacturers must balance factors such as strength, wear resistance, thermal conductivity, and cost to optimize gear performance and meet stringent industry standards for reliability and efficiency.

Advancements in gear manufacturing technologies, including additive manufacturing and advanced machining processes like CNC (computer numerical control) milling and grinding, have revolutionized the automotive gear market. These technologies enable the production of complex geometries, lightweight designs, and customized solutions with higher precision and efficiency, leading to improved performance, reduced lead times, and cost-effective manufacturing.

The automotive gear market is witnessing several emerging trends driven by advancements in digitalization, connectivity, and automation. Smart gears equipped with sensors, actuators, and embedded electronics enable real-time monitoring, condition-based maintenance, and optimization of gear performance. Additionally, the electrification of gears, such as electrically actuated shifting mechanisms in transmissions, contributes to enhanced efficiency, drivability, and vehicle electrification initiatives.

Ministry of Heavy Industries, SEBI, GGAG, BSE India, Tofler.

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