Automotive Gears Market by Type (Planetary, Bevel, Rack & Pinion, Hypoid, Worm, Helical, Spur, Non-metallic), Application (Transmission, Differential, Steering, Others), Vehicle Type, Propulsion (ICE, Hybrid), Material, & Region - Global Forecast to 2030
[290 Pages Report] The global automotive gears market is expected to grow by USD 42.7 billion in 2024 to 50.8 billion in 2030, projected to grow at a CAGR of 3.0% in the forecasted period. The rising global vehicle production is expected to drive the market. The rising demand for SUVs and premium vehicles has increased in developed and developing countries, with increasing disposable income, consumer demand for ride quality, and rising brand awareness. Global vehicle production has risen ~10% in the past four years, from 84.8 million units in 2020 to 93.5 million in 2023. As the market is directly linked to the automotive gears market, vehicle production will drive the growth of automotive gears.
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Market Dynamics
Driver: Rising production of passenger cars and light commercial vehicles.
There has been significant growth in the production of passenger cars and light commercial vehicles in recent years. The production of passenger cars has increased to 68.1 million units in 2023 from 55.9 million units in 2020. The production of light commercial vehicles increased from 16.9 million units in 2020 to 21.4 million units in 2023. Passenger cars lead the transmission gears market because of the multiple transmission options available (manual, automatic, DCT, and AMT) in various gear ratios. Also, passenger cars use non-metallic gears for sunroofs, ORVMs, and power windows, which will drive the automotive gears market for non-metallic gears. Light commercial vehicles lead the market for differential gears as all of these vehicles are rear-wheel drive and are equipped with differentials.
Restraint: Rising popularity of electric vehicles
The shift in consumer preference towards electric vehicles will restrain the automotive gear industry—the lack of transmission and differentials in pure electric vehicles, which are major gear applications. According to IEA, 14 million new electric vehicles were registered in Europe in 2023, China produced 8.1 million electric vehicles, and the US reached 1.4 million in 2023. Due to the shift towards electric vehicles, there will be a drastic reduction in number of gears used in vehicles.
Opportunities: Increasing adoption of plastic/polymer gears in automotive applications.
Gear materials can be categorized into two types: metallic gears and non-metallic gears. Non-metallic gears are made of polymers/plastics used in applications like sunroofs, ORVMs, power windows, and automatic tailgates. These gears have benefits like lower noise less vibration, are lightweight, and are low in cost. These gears are corrosion and maintenance-free, making them an ideal choice for light-duty applications. The increase in consumer demand for comfort and convenience features will make the use of non-metallic gears more prominent.
Challenges: High costs of advanced and lightweight gears
The high cost of lightweight and advanced gears is associated with multiple factors like materials used, manufacturing techniques employed, and product performance requirements. Advanced and lightweight materials like carbon fiber composites, aluminum alloys, and high-strength steels are expensive compared to other materials. The precision required for lightweight materials also increases costs, making it difficult for gear manufacturers. Although the initial costs for manufacturing advanced and lightweight gears are high, they have long-term benefits like more efficiency, less emissions, and lower maintenance.
Automotive Gears Market Ecosystem.
The major manufacturers in the automotive gears market have the latest technologies, diversified portfolios, and strong global distribution networks. The major players in the market are American Axle & Manufacturing Holding, Inc. (US), GKN Powder Metallurgy (US), Bharat Gears Ltd. (India), JTEKT Corporation (Japan), and Robert Bosch GmbH (Germany). The ecosystem analysis highlights various players in themarket, primarily representing component providers, manufacturers, and automotive OEMs.
The bevel gears are estimated to have the largest share in the differential gears market by type.
For the differential market by gear type, bevel gears are expected to hold more than 60% of the market. Bevel gears are used in all kinds of differentials across all vehicle types. Bevel gears are used in FWD transaxles and RWD, AWD, and 4WD differentials, except for differentials of very heavy trucks with Torsen differentials. The demand for bevel gears has increased due to rising sales of SUVs with 4WD/AWD drive configurations in Europe and North America. The countries such as China, Japan, US, Canada, and South Korea lead the premium SUVs market, contributing more than 90% of total production globally. In 2023, the production of luxury SUVs in the US out of total luxury cars was around 75%. Developing countries such as China, Brazil, and India have grown tremendously in SUV demand during previous years. These premium cars and SUVs are offered with AWD/ 4WD systems consisting of AWD/4WD systems comprised of two differentials: front and rear. North America also has a higher demand for pick-up trucks, which are usually rear-wheel driven. Also, the growing axle configuration in the heavy trucks segment across all regions will boost the differential units, increasing demand for bevel gears. The differentials market is expected to grow with the increasing vehicle production of passenger cars and the increased production of multi-axle trucks available in 6x4 and 8x4 configurations that use double differentials.
Dual-clutch transmission (DCT) is estimated to be one of the fastest-growing transmission gear markets under the review period.
In the transmission gears market, by transmission type, DCT is estimated to be one of the fastest-growing segments. Customers are looking for comfortable and performance-driven technology to tackle regular traffic conditions, which is why the market for DCT is growing to provide a smoother driving experience. The DCT offers fast gear shifting with negligible lag between two consecutive gears, resulting from its design allowing for pre-selection of gears. North America dominates the largest gear market for DCT owing to the advantages appealing to the regional customers due to its rapid gear shifting capabilities and enhanced driving dynamics. Further, the market trend for DCT is rapidly changing in Asia Pacific due to the shift in consumer preference towards high-quality driving experience. Many OEMs in the region have begun offering this transmission in their vehicles. Passenger cars, mostly mid-size SUVs and sedans, are provided with DCT transmission. Global OEMs such as Porsche, Volkswagen, Ford, Chrysler, Hyundai, and Kia have integrated DCT into their existing models. As several OEMs are leading this transition while integrating DCT systems to enhance performance and cater to evolving consumer preferences, the demand for helical gears will continue to remain upward in the future.
The differential system is estimated to hold the largest market share in the hybrid vehicle gears market during the forecast period
Hybrid SUVs offered in RWD/AWD configurations are expected to lead the automotive gears market for differential systems. The market penetration of hybrid cars with RWD/AWD is low, but the market share is expected to grow owing to its advantages. The RAV4 Hybrid and Prius AWD have an advanced AWD-i system to secure handling in slippery conditions. Major PHEV OEMs such as Lexus, Toyota, Hyundai, Volvo, and Ford will launch RWD and 4WD/AWD PHEV models in the coming years. This will prompt demand for differentials and gears installed in this vehicle segment.
Further, The RWD or 4WD/AWD cars are mostly equipped with locking or limited slip differentials (LSD) that improve vehicle balance and provide sufficient traction on any surface, leading to enhanced driver confidence. Differentials are installed with bevel, pinion, hypoid, and helical spur gears. The demand for hybrid SUVs with RWD/AWD driving modes will drive the market for differential gears.
Asia Pacific region will dominate the global automotive gears market.
In the Asia Pacific region, the car industry is primarily responsible for global production, covering nearly 60% of the worldwide output. In the region, there are companies like Toyota Motor Corporation (Japan), Hyundai Motor Co., Ltd. (South Korea), Tata Motors Ltd. (India), Suzuki Motor Corporation (Japan), and Mahindra and Mahindra (India) which have been leaders in car production and also manufacturers of automotive components. The region accounted for about 50% of the global SUVs production in 2023, most of which were equipped with AWD/4WD systems. As a result, this will create demand for differential gears. Apart from that, the consumer mindset in the market, which is winging towards dual-clutch transmissions and automatic manual transmissions, is the factor driving the demand for gears such as transmission ones.
Moreover, riding comfort has dramatically been affected by the rapidly increasing demand for smooth gear shifting. As a result, people have started preferring dual-clutch transmissions and automated manual transmissions, so the transmission gear market has improved. Moreover, the with the growing disposable income of the population and demand for comfort features like sunroofs, power windows, and ORVMs keep rising in countries like China, India, Japan, and Korea. This will act as a driving factor for the non-metallic gears used in such applications, supporting the region's automotive gears market growth.
ASIA PACIFIC: AUTOMOTIVE GEARS MARKET
Key Market Players
Global players dominate the automotive gears market and comprise several regional players. The key players in the market are American Axle & Manufacturing Holding, Inc. (US), GKN Powder Metallurgy (US), Bharat Gears Ltd. (India), JTEKT Corporation (Japan), and Robert Bosch GmbH (Germany)
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Report Metric |
Details |
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Market size available for years |
2019–2030 |
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Base year considered |
2023 |
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Forecast period |
2024–2030 |
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Forecast units |
Volume (Thousand Units) and Value (USD Million) |
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Segments Covered |
by vehicle type, material type, application, gear type, hybrid vehicle market by application, transmission gear market by transmission type, differential gear market by gear type, and region. |
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Geographies covered |
Asia Pacific, North America, Europe, and the Rest of the World [RoW] |
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Companies covered |
American Axle and Manufacturing Holdings, Inc., Bharat Gears Ltd., GKN Powder Metallurgy, JTEKT Corporation, Robert Bosch GmbH, Hitachi Astemo, IMS Gear, Univance Corporation, Eaton, Cummins Inc., RSB Global, Hota Industrial Mfg. Co., Ltd., EEC.VECV |
Along with the given market data, MarketsandMarkets offers customizations in accordance with the company’s specific needs.
The study segments the automotive gears market:
Application Type
- Transmission system
- Differential system
- Steering system
- Other automotive applications
By Vehicle Type
- Passenger Car
- Light commercial vehicle
- Heavy commercial vehicle
By Material type
- Metallic
- Non-metallic
By Gear Type
- Planetary gears
- Bevel gears
- Rack and pinion gears
- Hypoid gears
- Worm gears
- Helical gears
- Spur gears
- Pinion gears
- Non-metallic gears
Hybrid vehicle gears market by application
- Transmission system
- Differential system
- Steering system
- Other automotive applications
Differential gears market by gear type
- Bevel gears
- Hypoid gears
- Worm gears
- Spur gears
- Pinion gears
- Helical gears
Transmission gears by transmission type
- Automatic transmission
- Automated manual transmission
- Manual Transmission
- Dual-clutch transmission
By Region
- Asia Pacific
- North America
- Europe
- Rest of the World [RoW]
Recent Developments
- In May 2023, AAM invested USD 10 million in the Global Strategic Mobility Fund, a venture capital fund by EnerTech Capital. Due to this investment, AAM has access to Enertech's vast network of mobility businesses, which will help enhance AAM's products.
- In April 2023, Dowlais Group announced the demerger of GKN Automotive, GKN Powder Metallurgy, and GKN hydrogen business from Melrose Industries plc into Dowlais Group Plc. Dowlais Group plc acquired the above three companies from Melrose Industries Plc in this demerger.
- In August 2022, in response to the growth of electric vehicles, JTEKT developed JTEKT Ultra Compact Diff., a differential for Electric vehicles eAxle. The differential is small in size and is highly durable. The new differential features high torque density and durability. Despite the compact, the differential strength is the same for JUCD (JTEKT Ultra Compact Differential).
Frequently Asked Questions (FAQ):
What is the current size of the automotive gears market?
The global automotive gears market is expected to grow from USD 42.7 billion in 2024 and is projected to reach USD 50.8 billion in 2030, grow at a CAGR of 3.0% during projected years.
Who are the top key players in the automotive gears market?
Global players dominate the automotive gears market and comprise several regional players. The key players in the automotive gears market are American Axle & Manufacturing Holding, Inc. (US), GKN Powder Metallurgy (US), Bharat Gears Ltd. (India), JTEKT Corporation (Japan), and Robert Bosch GmbH (Germany). Moreover, these companies develop new gears as per the market demands and focus on supply contracts to capture market share. Such advantages give these companies an edge over other component providers.
What are the trends in the automotive gears market?
The passenger car dominates the global automotive gears market by vehicle type.
Helical gears will lead the automotive gears market by gear type segment.
By application, which segment is expected to lead the market
The differential gears market is expected to lead the automotive gears market by application. This is due to the increasing demand for AWD & 4WD vehicles and the growing production of Light and Heavy commercial vehicles.
What are the growth opportunities in the automotive gears market?
Rising global production of vehicles.
Growing sales of premium and luxury vehicles will drive the demand for non-metallic gears.
Increased focus on lightweight materials for automotive gears
The rising use of non-metallic gears for other applications like sunroofs, power windows, ORVMs, and automatic tailgates will drive the market for non-metallic gears. .
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The study encompassed four primary tasks to determine the present scope of the automotive gears market. Initially, extensive secondary research was conducted to gather data on the market, its related sectors, and overarching industries. Subsequently, these findings and assumptions were corroborated and validated through primary research involving industry experts across the value chain. Employing both bottom-up and top-down methodologies, the complete market size was estimated. Following this, a market breakdown and data triangulation approach were utilized to determine the size of specific segments and subsegments within the market.
Secondary Research
The secondary sources referred to for the study of the automotive gears market are directly dependent on end-use industry growth. Market sales and end-use industry demand are derived through secondary sources such as the International Organization of Motor Vehicle Manufacturers (OICA), European Automobile Manufacturers Association (ACEA), International Council on Clean Transportation (ICCT), Automotive Component Manufacturers Association of India (ACMA), Japan Automobiles Manufacturers Association (JAMA), corporate filings such as annual reports, investor presentations, and financial statements, and paid repository. Historical production data has been collected and analyzed, and the industry trend is considered to arrive at the forecast, further validated by primary research.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as CXOs, vice presidents, directors from business development, marketing, product development/innovation teams, and related key executives from various key companies. Various system integrators, industry associations, independent consultants/industry veterans, and key opinion leaders were also interviewed.
Primary interviews have been conducted to gather insights such as automotive gears market sizing estimation and forecast, future technology trends, and upcoming technologies in the market. Data triangulation of all these points was done using the information gathered from secondary research and model mapping. Stakeholders from the demand and supply sides have been interviewed to understand their views on the aforementioned points.
Primary interviews have been conducted with market experts from the demand-side (end-use industries) and supply-side (automotive gears providers) across four regions: North America, Europe, Asia Pacific, and the Rest of the World. Approximately 50% and 50% of the primary interviews were conducted on the OEMs and component manufacturer sides. Primary data has been collected through questionnaires, emails, and telephonic interviews. After communicating with primaries, we have strived to cover various departments within organizations, such as sales and operations, to provide a holistic viewpoint in our report. After interacting with industry experts, we have also conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This and the in-house subject matter experts’ opinions have led us to the conclusions described in the remainder of this report.
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Market Size Estimation
As mentioned below, a detailed market estimation approach was followed to estimate and validate the value of the automotive gears market and other dependent submarkets.
- Key players in the automotive gears market were identified through secondary research, and their global market ranking was determined through primary and secondary research.
- The research methodology included a study of annual and quarterly financial reports, regulatory filings of major market players (public), and interviews with industry experts for detailed market insights.
- All vehicle level penetration rates, percentage shares, splits, and breakdowns for the market were determined using secondary sources and verified through primary sources.
- All key macro indicators affecting the revenue growth of the market segments and subsegments were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain validated and verified quantitative and qualitative data.
- The gathered market data was consolidated, enhanced with detailed inputs, analyzed, and presented in this report.
Global Automotive Gears Market Size: Bottom-Up Approach By Vehicle Type and Country
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Data Triangulation
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified by primary sources. All parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, and analyzed to obtain the final quantitative and qualitative data. This data has been consolidated and enhanced with detailed inputs and analysis from MarketsandMarkets and presented in the report.
Market Definition
Automotive Gear: A gear is a roller-shaped component with teeth along its outer edge, used in machines to transfer speed and torque between vehicle shafts. Gears enable different torque and speed ratios and can change the direction of the driven or driving shaft—the teeth on the gear wheel interlock to facilitate the transfer of speed and torque. Automotive Gears are mainly used in automotive transmissions, differentials, steering systems, and other applications.
Key Stakeholders
- Senior Management
- End User Finance/Procurement Department
- R&D Department
Report Objectives
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To define, describe, and forecast the size of the automotive gears market in terms of value (USD million) and volume (thousand units) between 2024 and 2030 based on the following segments:
- By Application (Transmission System, Differential System, Steering System, and Other Automotive Applications)
- By Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Heavy Commercial vehicles)
- By Material Type (Metallic and Non-metallic)
- By Gear Type (Planetary gears, Bevel gears, Rack and Pinion gears, Hypoid gears, Worm gears, Helical gears, Spur gears, Pinion gears and Non-metallic gears)
- Hybrid Vehicle gear market by application (Transmission System, Differential System, Steering System, and Other Automotive Applications)
- Transmission gear market by transmission type (Automatic transmission, Automated manual transmission, Manual transmission, and Dual clutch transmission)
- Differential Gears market by Gear type (Bevel gears, Pinion gears, Hypoid gears, Helical gears, Worm gears and Spur gears)
- By Region (Asia Pacific, Europe, North America, and Rest of the World)
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the market
- To analyze the market share of leading players in the automotive gears market and evaluate competitive leadership mapping.
- To strategically analyze key player strategies and company revenue analysis
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To study the following with respect to the market
- Trends and Disruptions Impacting Customers’ Businesses
- Market Ecosystem
- Technology Analysis
- Supply Chain Analysis
- Patent Analysis
- Regulatory Landscape
- Case Study Analysis
- Key Stakeholders and Buying Criteria
- Key Conferences and Events
- Trade Analysis
- Investment and Funding Scenario
- Pricing Analysisn
- To analyze recent developments, including product launches, partnerships, acquisitions, expansions, and other developments undertaken by key industry participants in the market
- To give a brief understanding of the automotive gears market in the recommendations chapter
AVAILABLE CUSTOMIZATIONS
With the given market data, MarketsandMarkets offers customizations in accordance with the company’s specific needs.
TRANSMISSION GEARS MARKET, BY TRANSMISSION TYPE AND COUNTRY
- Automatic Transmission
- Automated Manual Transmission
- Manual Transmission
- Dual Clutch Transmission
Note: The transmission type market can be provided for each vehicle type in terms of volume and value at the country level.
DIFFERENTIAL GEARS MARKET BY GEAR TYPE AND COUNTRY
- Bevel Gears
- Spur Gears
- Worm Gears
- Hypoid Gears
- Helical Gears
- Pinion gears
Note: The market for each differential gear type can be provided for each mentioned vehicle type in terms of volume and value at the country level.
TRANSMISSION GEARS MARKET BY GEAR TYPE
- Planetary Gears
- Spur Gears
- Helical Gears
Growth opportunities and latent adjacency in Automotive Gears Market