Automotive Gears Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Automotive Gears Market is Segmented by Position (Skew Shaft Gears, Intersecting Shaft Gears, Parallel Shaft Gears), Material (Ferrous Metals, Non-ferrous Metals, Other Materials (Composites and Plastics)), Application (Steering Systems, Transmission Systems, Differential Systems), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle-East and Africa). The report offers market size and forecasts for Automotive Composites in Value (in USD billion) for all the above segments.

Market Snapshot

Automotive Gears Market Overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >5.5 %

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Market Overview

The automotive gears market is valued at USD 4.2 Billion in 2020 and is expected to reach USD 5.1 Billion by 2026. The automotive gears market is anticipated to register a CAGR of over 5.5% during the forecast period (2021-2026).

Gears are a significant component in automotive systems. The gears market growth is directly related to vehicle sales.

In the automotive market, a shift toward more expensive, energy-efficient units, such as seven and eight-speed automatic transmissions, may contribute to value gains. Additionally, sales of gears used in several relatively small but fast-growing applications, such as wind and solar power, are expected to increase significantly.

However, various factors are restraining the growth of the gear market, such as the growing demand for electric vehicles, due to rising emission regulations. The electric vehicles have minimal use of gears. The overall number of gears used is significantly less, due to fewer transmission systems, lesser use of differentials, and near elimination of gearboxes.

Asia-Pacific is likely to lead the automotive gears market, as the region is a major vehicle producer, followed by Europe and North America, respectively. Nevertheless, vehicle production around the world is declining due to the economic crisis, recent US-China trade conflicts, and on-going COVID-19 pandemic. The automotive gears market is expected to witness a decline throughout 2020, and a reduction in Y-o-Y growth rate in 2021.

Scope of the Report

The automotive gears market is segmented by Position, Material, Application, and Geography

By Position, the market is segmented as Skew Shaft Gears, Intersecting Shaft Gears, And Parallel Shaft Gears.

By Material, the market is segmented as Ferrous Metals, Non-Ferrous Metals, And Other Materials

By Application, the market is segmented as Steering Systems, Transmission Systems, And Differential Systems

and by Geography, the market is segmented as North America, Europe, Asia-Pacific, Latin America, and Middle-East, and Africa.

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
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Latin America
Rest of South America
Middle-East and Africa
United Arab Emirates
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Growing Demand of Electric Vehicle Hindering the Growth of the Automotive Gears Market

The electric vehicle market is rapidly growing across the world. The electric vehicle sales in Europe have significantly increased by 47% in the first quarter of 2018, in comparison to the first quarter of 2017. By 2040, nearly 54% of the new car sales and 33% of the global car fleet are likely to be electric. To meet the electric vehicle sales target, the European government has already started various projects for building charging infrastructure across the region.

The global and regional manufacturers of electric vehicles are innovating with new technologies and are expanding their services across the world. For instance:

  • China's BYD has built up an extensive production network in Europe that has mostly gone unnoticed in the passenger car market. Some of the primary reasons for this are the firm's new plant in Hungary, its planned plant in France, and its joint venture operations in the United Kingdom, all of which are manufacturing electric buses.
  • Daimler has teamed up with the Chinese government for promoting e-mobility in China. Electric mobility is one of the major pillars of Daimler's future mobility strategy. The company is bringing this strategy forward globally, especially in China, the world's largest NEV market.

The electric vehicles have minimal use of gears. The overall number of gears used is significantly less due to fewer transmission systems, lesser use of differentials, and almost near elimination of gearboxes.


Asia-Pacific is Dominating the Automotive Gears Market

  • Asia-Pacific dominated the automotive gears market, with China being a key contributor to the growth of the market studied. Asia-Pacific is the leading market for automotive gear. With the increasing vehicle production in countries, such as India and China, as well as the manufacturers’ focus on increasing production capacity, the demand for the automotive gear is anticipated to grow significantly in the future. The low penetration of automobiles and infrastructure development in emerging nations has increased the demand for personal transportation and commercial vehicles.
  • Additionally, the increasing need for fuel-efficient vehicles and lightweight automotive parts are the two factors driving the growth of the market. Europe and North America are mature markets for the automotive gear, with the former holding the second-largest market share, followed by Asia-Pacific.

Competitive Landscape

Some of the major manufacturers in the automotive gear market include American Axle & Manufacturing Holdings Inc., AmTech International, Bharat Gears Ltd, GKN PLC, Robert Bosch GmbH, Gleason Plastic Gears, Showa Corporation, and Universal Auto Gears LLP, among others.

Recent Developments

  • In July 2021, ZF secured a nearly USD 6 billion axle contract for the Marysville, Michigan facility for the delivery of beam axles and axle drives for pick-up trucks until 2027.
  • In May 2021, American Axle & Manufacturing Inc and REE Automotive (“REE”), announced that the companies have agreed to jointly develop a new electric propulsion system for e-Mobility. The partnership intends to leverage AAM’s system integration capabilities and focus on NVH (noise, vibration, and harshness) reduction to incorporate AAM’s lightweight and efficient next-generation electric drive units, which feature fully integrated high-speed motors and inverter technology
  • In February 2021, American Axle Manufacturing (AAM) announced that it secured the axle and driveshaft program for Ram’s heavy-duty pick-up trucks, for the 2500 and 3500 through 2030.
  • In February 2021, ZF announced that it is investing USD 200 million in commercial vehicle transmission manufacturing in North America. Beginning in 2023, ZF will produce the ZF Powerline 8-speed automatic transmission at the company’s state-of-the-art manufacturing facility in Gray Court, SC
  • In January 2020, GKN Automotive, and Delta Electronics Inc., provider of power and thermal management solutions, announced their collaboration on the joint development that will enable the rapid acceleration of next generation integrated 3-in-1 eDrive systems of power classes from 80kW to 155kW.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Position

      1. 5.1.1 Skew Shaft Gears

        1. Hypoid Gears

        2. Worm Gears

      2. 5.1.2 Intersecting Shaft Gears

        1. Straight Bevel Gears

        2. Spiral Bevel Gears

      3. 5.1.3 Parallel Shaft Gears

        1. Spur Gears

        2. Rack and Pinion Gears

        3. Herringbone Gears

        4. Helical Gears

    2. 5.2 By Material

      1. 5.2.1 Ferrous Metals

      2. 5.2.2 Non-ferrous Metals

      3. 5.2.3 Other Materials (Composites and Plastics)

    3. 5.3 By Application

      1. 5.3.1 Steering Systems

      2. 5.3.2 Differential Systems

      3. 5.3.3 Transmission Systems

        1. Manual

        2. Automatic

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.4.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Italy

        5. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.4.4 Latin America

        1. Brazil

        2. Argentina

        3. Mexico

        4. Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. United Arab Emirates

        2. South Africa

        3. Rest of Middle-East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 American Axle & Manufacturing Holdings Inc.

      2. 6.2.2 AmTech International

      3. 6.2.3 Bharat Gears Ltd

      4. 6.2.4 Cone Drive

      5. 6.2.5 Dynamatic Technologies Limited

      6. 6.2.6 Franz Morat Group

      7. 6.2.7 GKN PLC

      8. 6.2.8 Gleason Plastic Gears

      9. 6.2.9 IMS Gear SE & Co. KGaA

      10. 6.2.10 Robert Bosch GmbH

      11. 6.2.11 RSB Global

      12. 6.2.12 Showa Corporation

      13. 6.2.13 Taiwan United Gear Co. Ltd

      14. 6.2.14 Universal Auto Gears LLP

      15. 6.2.15 ZF Friedrichshafen AG


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Frequently Asked Questions

The Automotive Gears Market market is studied from 2018 - 2026.

The Automotive Gears Market is growing at a CAGR of >5.5% over the next 5 years.

The Automotive Gears Market is valued at 4 Billion USD in 2018.

The Automotive Gears Market is valued at 5 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

American Axle & Manufacturing Holdings Inc., AmTech International, GKN PLC, Robert Bosch GmbH, Showa Corporation are the major companies operating in Automotive Gears Market.

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