Market Size of Automotive Gears Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 4.70 Billion |
| Market Size (2029) | USD 5.33 Billion |
| CAGR (2024 - 2029) | 4.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Automotive Gear Market Analysis
The Automotive Gears Market size in terms of Equal-4.5 is expected to grow from USD 4.70 billion in 2024 to USD 5.33 billion by 2029, at a CAGR of 4.5% during the forecast period (2024-2029).
The automotive gears market was 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 (2023-2028).
The COVID-19 pandemic disrupted market growth. With lockdowns and travel restrictions, the demand for vehicles had declined. As a result, the growth of automotive parts in the automotive industry also fell in the past two years. This trend was seen in all segments related to the automotive industry.
Over the long term, vehicle production has increased yearly in developed and developing countries. This will lead 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. Electric vehicles use minimal gear. The overall number of gears 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 significant vehicle producer, followed by Europe and North America. The market growth across these regions will likely 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.
