Global automotive gear market is projected to observe a CAGR of 5.27% during the forecast period 2024–2031, growing from USD 4.71 billion in 2023 to USD 7.10 billion in 2031. The market has witnessed significant growth in recent years and is expected to maintain its expansion in the coming years owing to a significant increase in the production of vehicles in developed and emerging countries, a rapid trend of customization, a rise in investment by established gear manufacturers in advancing performance, and government policies and regulations to reduce carbon footprint. The global automotive gear market demand is projected to rise due to growing demand for passenger cars, the surging trend of installing mechanical parts in passenger vehicles, and the introduction of light-weight gear systems. According to the International Organization of Motor Vehicle Manufacturers, China is the largest producer of vehicles globally, manufactured over 21.4 million cars and 4.6 million commercial vehicles during 2021 for a completed production of more than 26 million vehicles. In addition, countries are becoming more populated, and the living standards living of end-users is rising, offering a growth opportunities for the automobile market globally which further results in an expansion for auto gear manufacturers across the globe.
Governments across the globe are framing policies and stringent fuel-efficiency norms to reduce carbon emissions and compel companies to enhance the performance and safety of vehicles. In addition, governments of emerging countries are working on an increase in sales of alternative fuel and fuel-efficient vehicles through tax benefits, and incentives, fostering the global automotive gear market growth in the forecast period. In addition, automakers in the global market are efficiently featuring vehicles with advanced gearboxes to offer safe driving experiences and smoother rides.
For instance, in October 2023, Mahindra & Mahindra Limited announced the launch of XUV300 featuring with new Aisin-sourced automatic gearbox that provides smoother rides and overall drive dynamics.
Increase in Production of Vehicles to Drive the Global Automotive Gear Market Demand
An increase in per capita income, a rapid trend of personalization, and a growing population rate are expected to lead to a boost in the number of vehicles on the road further resulting in different market growth opportunities for automotive gear manufacturers. A shift in the standard of living of consumers, rising preference for comfortable driving, and rising awareness concerning vehicle and road safety are projected to propel the growth of the global automotive gear market in the forecast period. The requirement for gear utilized in transmission, engines, and several other systems is positively impacted by the rising production of automobiles such as commercial and passenger vehicles. In addition, the demand for automotive gear is rising as it allows the driver to get complete control of an automobile and offer a smooth ride. Companies are efficiently integrating automotive gear in newly launched vehicles, including passenger and commercial vehicles to enhance the performance of vehicles and optimize fuel efficiency.
For instance, in February 2024, Tata Motors Limited announced the launch of its Ultra range of new-generation, smart trucks in South Africa featuring power steering, booster-assisted clutch, walk-through cabin, dashboard-mounted gear lever, and mechanically suspended seat for fatigue-free and safe driving.
Increasing Demand for Automatic Transmission Systems (ATS) Pushes Market Growth
The demand for automatic transmission systems (ATS) in vehicles is growing as these systems automatically shift gears and hence don’t need the driver to change gears manually. These systems are efficiently using sensors to monitor the speed of a vehicle and improve engine power utilization. The demand for automotive transmission is rising due to its benefits including ease of use, smooth functioning, and fuel efficiency. In addition, the global market for automotive gears is rising due to its consumer preference for automatic transmissions over manual ones as it requires a great number of gears compared to manual transmission systems. Hence, increasing demand for automatic transmissions is expected to drive the global automotive gear market growth in the forecast period. Furthermore, companies in the global market feature automatic transmissions offer high performance and enhance vehicle handling.
For instance, in April 2024, Allison Transmission, Inc. announced that International Truck, a Navistar brand featured with Allison fully automatic transmission into S13-equipped trucks to offer increased horsepower and lighter weight, translating into more loads, productivity, and deliveries.
Click Here: https://www.marketsandata.com/industry-reports/automotive-gear-market
Government Rules and Regulations Drive the Global Market Growth
Governments across the globe are integrating different strategies to reduce carbon emissions and compelling companies to advance the performance of vehicles. Governments in emerging and developed countries are offering different subsidies and incentives to promote the adoption rate of electric vehicles and the integration of lightweight raw materials. In addition, governments globally are advising companies to perform pre-sale tests and feature vehicles with lightweight raw materials to cut emissions and meet strict fuel economy regulations.
For instance, in June 2023, the Government of India finalized India’s star rating system for automobiles based on safety standards. Bharat New Car Assessment Program (Bharat NCAP) came into effect on 1st October 2023, pushing car manufacturers to supply inbuilt safety measures and help end-users in selecting safer vehicles.
Passenger Vehicles Dominate the Largest Global Automotive Gear Market Share
The passenger vehicles register the largest share of the market, owing to an increase in demand for passenger cars, an increase in per capita income, technological advancement in passenger vehicles, and the availability of different variants of passenger cars. The demand for automotive gears in passenger cars is rising significantly as these are effective in regulating power to the wheels and increasing fuel efficiency by keeping the engine operating in its ideal revolutions per minute (RPM) range. In addition, the integration of automatic transmissions in passenger cars is gaining popularity as it allows end-users to move cars without changing the gears manually. Furthermore, companies plan to launch passenger vehicles with featured automatic transmissions to offer a safe driving experience and dominate the market growth.
For instance, in June 2024, Tata Motors Limited announced the launch of the Altroz Racer, featuring a 6-speed manual gearbox, a 1.2 L Turbo Petrol engine, Torque of 170 Nm with 1750 to 4000 rpm, and others to ensure peppy drivability in city traffic and on highways.
Asia-Pacific Registers the Largest Global Automotive Gear Market Size
Asia-Pacific registers the largest size in the global market owing to an increase in population rate, growing demand for passenger vehicles, rising production of vehicles in emerging countries, and surging awareness concerning road and vehicle safety. In Asia-Pacific automotive gear market, China is projected to dominate the largest market share owing to the presence of giant market players, rising requirements for fuel-efficient vehicles, and significant technological advancement in automotive industry. Companies in Asia-Pacific market are investing in different research and development activities to advance the performance of automotive gears and higher fuel efficiency. In addition, companies in the global market are significantly integrating effective automotive gear in vehicles to automatically shift gears, monitor the vehicle’s speed, and remove manual efforts. Furthermore, companies plan to launch plants in emerging countries including China and India to enhance vehicle performance and offer several benefits to OEM partners.
For instance, in June 2024, Schaeffler Group announced the launch of its planetary gear system from Schaeffler’s Hosur Plant for dedicated hybrid transmission vehicles in India to offer a robust value proposition to OEM partners and deliver superior motion technology solutions.
Future Market Scenario (2024–2031F)
- Constant technological advancements and integration of advanced features in vehicles are expected to drive the global automotive gear market growth.
- Rapid trends of customization, increasing disposable income of end-users, and growing awareness about safety among end-users are predicted to foster the global market demand in the forecast period.
- Government regulations on safety and passenger protection and growing demand for fuel-efficient vehicles are surging the demand for automotive gear globally.
- A rising production of passenger vehicles and easy accessibility of different variants of vehicles are fostering market growth in the forecast period.
Report Scope
“Automotive Gear Market Assessment, Opportunities and Forecast, 2017–2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global automotive gear market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
Contact
Mr. Vivek Gupta
5741 Cleveland street,
Suite 120, VA beach, VA, USA 23462
Tel: +1 (757) 343–3258
Email: info@marketsandata.com
Website: https://www.marketsandata.com