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Automotive Gears Market Size, Share, Growth & Industry Analysis, By Type (Bevel Gears, Helical Gears, Spur Gears, Planetary Gears, Worm Gears, Hypoid Gears), By Material Type (Metallic, Non-Metallic), By Vehicle Type, By Application, and Regional Analysis, 2024-2031
Pages: 160 | Base Year: 2023 | Release: March 2025 | Author: Sharmishtha M.
The automotive gears market encompasses the development and distribution of gear systems integral to vehicle performance. It involves innovations to enhance power efficiency, reduce emissions, and improve driving dynamics.
The market is influenced by advancements in automotive technologies, rising demand for fuel-efficient vehicles, and the shift toward electric and hybrid vehicles, highlighting the need for specialized gear solutions.
Global automotive gears market size was valued at USD 41.09 billion in 2023, which is estimated to be valued at USD 43.19 billion in 2024 and reach USD 63.56 billion by 2031, growing at a CAGR of 5.67% from 2024 to 2031.
The expansion of the automotive industry, oarticularly in emerging economies, significantly boosts the demand for automotive gears. The increasing vehicle production in these regions is fueling demand for advanced gear systems in both traditional and electric vehicle markets rto enhance performance and efficiency.
Major companies operating in the global automotive gears industry are AmTech OEM, GKN Automotive Limited, Robert Bosch LLC, JTEKT Corporation, GKN Powder Metallurgy, Bharat Gears Ltd, Bonfiglioli Riduttori S.p.A, Circle & Gear Machine Co., Inc., Eaton, Gear Motions , CIE Automotive, Precipart, Renold Chain India Private Limited, IMS Gear, United Gear, and others.
The market is a critical component of the global automotive industry, focused on providing efficient power transmission systems for vehicles. It encompasses a variety of gear types, including those used in manual, automatic, and electric vehicles.
With increasing emphasis on vehicle performance, fuel efficiency, and emission reduction, the market is seeing steady demand. Manufacturers are innovating with advanced gear solutions to meet evolving consumer and regulatory standards. The market remains highly competitive, with continuous advancements in materials and technology.
Market Driver
"Increase in Vehicle Production"
The global surge in vehicle production is fueling the growth of the automotive gear market, as rising demand for automobiles necessitates advanced, high-performance gear systems.
This expansion encompasses both traditional and electric vehicles, requiring innovative gear technologies to meet evolving performance and efficiency standards. As manufacturers focus on producing more vehicles to meet consumer needs, the demand for reliable, efficient, and cost-effective gear solutions is rising, supporting market growth.
Market Challenge
"Addressing the Skilled Labor Shortage"
The growth of the automotive gear market is impeded by the shortage of skilled labor, particularly in gear manufacturing and precision engineering. This gap hinders production efficiency and innovation.
To address this challenge, companies can invest in training programs, collaborate with educational institutions to develop specialized curricula, and implement automation to reduce dependency on manual labor. Additionally, offering competitive wages, career development opportunities, and advanced technology integration can help help attract and retain skilled workers.
Market Trend
"Surging Use of Lightweight Material"
A significant trend in the automotive gear market is the growing use of lightweight materials such as aluminum and composites to reduce vehicle weight and improve fuel efficiency .
By incorporating these materials into gear systems, manufacturers can enhance vehicle dynamics while meeting stringent fuel economy standards. The move toward lightweight, durable materials further helps reduce carbon emissions, support the industry’s shift toward more sustainable and energy-efficient vehicles, particularly in electric and hybrid models.
Segmentation |
Details |
By Type |
Bevel Gears, Helical Gears, Spur Gears, Planetary Gears, Worm Gears, Hypoid Gears |
By Material Type |
Metallic, Non-Metallic |
By Vehicle Type |
Passenger Cars, Commercial Vehicles, Electric Vehicles (EVs), Two-Wheelers |
By Application |
Powertrain, Differential Gears, Steering Systems, Transmission Systems |
By Region |
North America: U.S., Canada, Mexico |
Europe: France, U.K., Spain, Germany, Italy, Russia, Rest of Europe | |
Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific | |
Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa | |
South America: Brazil, Argentina, Rest of South America |
Market Segmentation
Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Asia Pacific automotive gears market captured a share of around 40.12% in 2023, valued at USD 16.49 billion. This growth is fueled by rapid industrialization, increasing vehicle production, and growing demand for both traditional and electric vehicles (EVs).
Countries such as China, Japan, and India are at the forefront of this growth, with their vast automotive manufacturing capabilities and rising consumer demand for personal vehicles.
Additionally, the region is witnessing significant investments in EV production, highlighting the need for advanced gear systems. The region’s cost-efficient manufacturing and technological advancements strengthen its market position.
Europe automotive gears industry is estimated to grow at a robust CAGR of 5.55% over the forecast period. This growth is facilitated by the shift toward electric vehicles (EVs) and stringent emission regulations. As European manufacturers invest heavily in electric mobility, there is an increasing demand for efficient and high-precision gear technologies.
Countries such as Germany and France are leading the transition to EVs, with the adoption of advanced drivetrain systems. This, coupled with the region's focus on sustainability, positions Europe as a rapidly expanding market for automotive gears.
The global automotive gears market is characterized by a large number of participants, including both established corporations and emerging players. Venture capital investments in automotive gear companies are increasingly focused on supporting innovation and technological advancements, particularly in electric vehicle (EV) and hybrid systems.
These investments aim to accelerate the development of high-performance, energy-efficient gear solutions. By funding startups and established companies, venture capital plays a crucial role in driving progress toward sustainable mobility and next-generation automotive technologies.
Recent Developments (Launch/Expansion)