Automotive Gears Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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.

Automotive Gears Industry Overview

Automotive Gears Market Size
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: > 5.5 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Automotive Gears Market Analysis

The automotive gears market is valued at USD 4.67 Billion in 2022 and is expected to reach USD 5.38 Billion by 2027. The automotive gears market is anticipated to register a CAGR of over 5.5% during the forecast period (2022-2027).

Recent COVID-19 has disrupted the market growth. With lockdowns and travel restrictions, the demand for vehicles has declined. As a result, the growth of automotive parts in the automotive industry has also declined in the past two years. This trend is seen in all segments related to the automotive industry.

Over the long term as vehicle production has been increasing year on year in developed as well as developing countries. This will leads to growth in the automotive gear market. In the automotive market, a shift toward a more enhanced driving experience in terms of smooth gear shifting & improved acceleration has been increased.

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. The market growth across these regions is likely to be supported by demand for passenger cars and light commercial vehicles and continuous investments by established gear manufacturers in research and development to achieve improved vehicle efficiency and reduced carbon footprint in the coming years.

Automotive Gears Industry Segments

An automotive gear is a rotating part containing teeth, which forms a mesh with another toothed machine part or gear and transmits torque. The gears can change the torque, speed, and direction of the power source.

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 into Ferrous Metals, Non-Ferrous Metals, And Other Materials. By Application, the market is segmented into Steering Systems, Transmission Systems, And Differential Systems. By Geography, the market is segmented as North America, Europe, Asia-Pacific, Latin America, Middle-East, and Africa. For each segment, the report offers market size and forecast in value (USD Billion).

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
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Mexico
Rest of South America
Middle-East and Africa
United Arab Emirates
South Africa
Rest of Middle-East and Africa

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Automotive Gears Market Trends

This section covers the major market trends shaping the Automotive Gears Market according to our research experts:

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

The electric vehicle market is rapidly growing across the world. 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 to promote 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.

Automotive Gears Market Forecast

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

Asia-Pacific region is likely to dominate 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 automotive gear is anticipated to grow significantly in the future. For instance, according to several reports published, China is expected to sell 80 million internal combustion engines annually in the coming years as still the dominant share is occupied by these IC vehicles.

Additionally, the increasing need for fuel-efficient vehicles and lightweight automotive parts are the two factors driving the growth of the market. Besides these, Lightweight and highly durable aluminum and composite gears are estimated to gain higher popularity during the forecast period. For instance, NORD launched SK 920072.1 two-stage helical bevel gear motor (mounted with a NORD motor) is a drive solution for a wide range of light duty conveying, processing, and manufacturing applications. Identified by its high-strength and lightweight design.

The aforementioned factors and developments across various countries in the Asia-Pacific region are expected to enhance the growth of the market during the forecast period.

Automotive Gears Market Growth

Automotive Gears Market Competitor Analysis

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, and Gleason Plastic Gears, Showa Corporation, and Universal Auto Gears LLP, among others.

  • In June 2021, JATCO company developed a new continuously variable transmission "CVT-X" for medium and large FWD vehicles with improved environmental performance and drivability. It is said to have achieved a transmission efficiency of more than 90%, which was considered difficult for a CVT.
  • 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 July 2021, ZF also 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 March 2019, Dana Incorporated announced that it had completed the acquisition of the Drive Systems segment of the Oerlikon Group. This acquisition has expanded Dana’s current technology portfolio, especially in the area of high-precision helical gears for the light- and commercial-vehicle markets.

Automotive Gears Market Top Players

  1. American Axle & Manufacturing Holdings Inc.

  2. AmTech International

  3. GKN PLC

  4. Robert Bosch GmbH

  5. Showa Corporation

*Disclaimer: Major Players sorted in no particular order

American Axle & Manufacturing Holdings Inc., AmTech International, GKN PLC, Robert Bosch GmbH, Showa Corporation

Automotive Gears Market Recent Developments

  • In September 2021, ZF Announces Integration of MICO Brand, New Products at MINExpo 2021  The company has also launched several new products, including a next generation Redulus4F Industrial Gearbox Series and Advanced Serviceability Solutions, based on the ProVID Condition Monitoring System, which features an extended global support network that provides rapid detection and maintenance quickly and efficiently.
  • 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 April 2021, Aisin Seiki and Aisin AW Co., Ltd. integrated their operations with the aim of strengthening their competitiveness in the CASE (connected, autonomous, shared, electric) domain. The agreement included Toyota, and although Aisin Seiki was the surviving company after the merger, the new company name was changed to Aisin Corporation.
  • 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.

Automotive Gears Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    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

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD billion)

    1. 5.1 By Position

      1. 5.1.1 Skew Shaft Gears

        1. 5.1.1.1 Hypoid Gears

        2. 5.1.1.2 Worm Gears

      2. 5.1.2 Intersecting Shaft Gears

        1. 5.1.2.1 Straight Bevel Gears

        2. 5.1.2.2 Spiral Bevel Gears

      3. 5.1.3 Parallel Shaft Gears

        1. 5.1.3.1 Spur Gears

        2. 5.1.3.2 Rack and Pinion Gears

        3. 5.1.3.3 Herringbone Gears

        4. 5.1.3.4 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. 5.3.3.1 Manual

        2. 5.3.3.2 Automatic

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Italy

        5. 5.4.2.5 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 South Korea

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 Latin America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Mexico

        4. 5.4.4.4 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 United Arab Emirates

        2. 5.4.5.2 South Africa

        3. 5.4.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    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

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Automotive Gears Market Research FAQs

The Automotive Gears Market is studied from 2018 - 2028.

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 2028.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

Asia Pacific holds highest share in 2021.

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

Automotive Gears Industry Reports

In-depth industry statistics and market share insights of the Automotive Gears sector for 2020, 2021, and 2022. The Automotive Gears research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Automotive Gears report PDF.

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