Growing trends in the automotive gears market forecast 5.5% CAGR till 2028
February 10, 2023 3:24 pm
A shift toward a more enhanced driving experience in terms of smooth gear shifting and improved acceleration has been increased in the automotive market.
An automotive gear can change the power source’s torque, speed, and direction. The automotive gears market is segmented by Position, Material, Application, and Geography. 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 percent during the forecast period (2022-2027). Recently Covid has disrupted market growth. As a result, the development 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, vehicle production has been increasing 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 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. The market growth across these regions is likely 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 market trends
The electric vehicle market is rapidly growing across the world. By 2040, nearly 54 percent of the new car sales and 33 percent of the global car fleet will likely 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 expanding their services worldwide. For instance – China’s BYD has built an extensive European production network 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.
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 to dominate the market.
The Asia-Pacific region is likely to dominate the automotive gears market, with China being a key contributor to the market’s growth. Asia-Pacific is the leading market for automotive gear. With the increasing vehicle production in countries such as India and China and the manufacturers’ focus on increasing production capacity, the demand for automotive gear is anticipated to grow significantly.
Additionally, the increasing need for fuel-efficient vehicles and lightweight automotive parts drives the market’s growth. Besides these, Lightweight and highly durable aluminium 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.
The factors above and developments across various countries in the Asia-Pacific region are expected to enhance the market’s growth during the forecast period.
Market players: 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.
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