Growing automobile production driven by increasing consumer spending on vehicles is fueling demand for automotive transmission gears globally. The global automotive industry has witnessed steady growth over the past few years with growing popularity of economy cars, luxury cars, and sports utility vehicles (SUVs) across regions. In 2021 alone, over 90 million vehicles were produced worldwide. Transmission gears play a critical role in providing smooth driving experience by facilitating gear shifting and torque delivery to wheels. Traditionally, metal gears were predominantly used, however, growing emphasis on lightweighting is prompting manufacturers to develop advanced composite materials for gears with benefits of corrosion resistance, strength, and lower weight.
The global automotive transmission gears market is estimated to be valued at US$ 28567 Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Increased Automobile Production Worldwide: Growing demand for passenger and commercial vehicles especially in emerging economies of Asia Pacific and Latin America due to improving economic conditions and rising disposable incomes is fueling automotive production volumes globally. As transmission gears are an integral component of vehicle transmission system, increasing automobile manufacturing directly drives the need for gears.
Stringent fuel efficiency regulations: Stringent regulations worldwide pertaining to vehicle emissions and fuel economy are prompting automakers to focus on developing lightweight vehicles with advance transmission technologies. This is promoting adoption of composite gears with benefits of lower weight and friction which positively impacts fuel efficiency. Composite gears allow reduction in vehicle kerb weight and assist in meeting stringent norms.
The automotive transmission gears market can be segmented by gear type, vehicle type and region. Among gear types, helical gears dominate the market holding around 60% share due to their advantages over worm gears such as higher torque transmission, lesser noise, vibration and strength. By vehicle type, passenger cars is the largest segment owing to higher production volume of passenger vehicles compared to commercial vehicles. The Asia Pacific region dominates the automotive transmission gears market with China and India being the key markets due to large automotive manufacturing bases and growing vehicle parc in the region.
Political: Stringent vehicle emission norms in regions like Europe and fluctuating trade policies impact automotive production volumes. Economic: Growing vehicle ownership, rising disposable incomes and preference for luxury vehicles drive market growth. Social: Increasing mobility needs and preference for fuel efficient vehicles pose opportunities. Technological: Development of newer transmission technologies like CVT, DCT and automated manual transmissions is a key trend.
The Global Automotive Transmission Gears Market Size is expected to witness high growth supported by recovery in vehicle production post Covid impact along with rising transmission system complexity and demand for higher fuel efficiency.
Regional analysis: North America follows Asia Pacific and is projected to grow at 5% during the forecast period. Growing commercial vehicle production and emphasis on electric commercial fleets is driving the North American market. Key European countries like Germany, UK, France and Italy collectively account for over 30% share in the regional market led by strong automotive manufacturing base of luxury OEMs.
Key players operating in the automotive transmission gears market are Novartis AG, Gilead Sciences, Inc., Castle Creek Biosciences, Inc., Lineage Cell Therapeutics, Inc., Transgene SA, Cellectis, ImmunityBio, Inc., Sorrento Therapeutics, bluebird bio, Inc., Arcellx, Sana Biotechnology, Inc., Biodesix, Inc, and Laurus Labs. Key players are focusing on new product developments, partnerships and mergers & acquisitions to strengthen their market position.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it