Automotive Transmission Gears Market

Automotive Transmission Gears Market Is Expected To Be Flourished By Rising Demand For Fuel Efficient Vehicles


Automotive transmission gears are mechanical devices that facilitate torque and speed from a vehicle’s engine to propel the vehicle. Commonly used gear types include spur gears, helical gears, bevel gears, worm gears, planetary gears, and hypoid gears. The global automotive industry has witnessed significant growth in the adoption of automatic and CVT transmissions, owing to their fuel efficient operation and smooth gear transitions as compared to traditional manual transmissions. Automatic and CVT transmissions utilizes complex gear systems that facilitate smooth gear changes without interrupting torque delivery to the wheels. Such transmissions are increasingly being adopted in passenger vehicles as well as commercial vehicles to improve performance and comply with stringent fuel efficiency norms.

The global automotive transmission gears market is estimated to be valued at US$ 28567 Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rising demand for fuel efficient vehicles: Stringent emission norms and high fuel prices have created significant demand for fuel efficient vehicles across major automotive markets. Automatic and continuously variable transmissions (CVTs) provide better fuel efficiency as compared to manual transmissions. This is expected to drive the demand for advanced transmission gears that facilitate smooth gear changes in automatic transmissions.

Growing automobile production: Rapid urbanization and rising disposable incomes in emerging economies have augmented the overall automobile production volumes globally. Growth in vehicle parc is directly proportional to demand for transmission systems including gears. According to OICA, global automobile production rose by 4% in 2021 to reach over 90 million units. Growing automobile manufacturing is projected to have a positive influence on automotive transmission gears market during the forecast period.

Segment Analysis

The global automotive transmission gears market is dominated by the manual transmission sub segment. Manual transmission gears have been the traditional choice for transmission in vehicles, accounting for over 60% of the global market share currently. This is due to the lower cost and fuel efficiency benefits offered by manual transmission systems compared to alternatives such as automatic and continuously variable transmissions. However, the automatic transmission gears sub segment is witnessing faster growth driven by increasing demand for convenience and comfort features in vehicles globally.

Pest Analysis

Political: Emission regulations being implemented across many countries are boosting demand for more fuel efficient automatic transmissions. stricter fuel economy and emission norms are encouraging adoption of advanced transmission technologies.

Economic: Rising disposable incomes are driving demand for vehicles with premium features. Higher labor costs are also encouraging automation. Interest rate policies influence automotive sales and hence transmission gears demand.

Social: Younger generations prefer automatic transmissions for convenience during driving. Longer commutes and traffic situations make automatic gearboxes popular. Safety awareness is increasing demand for technologically advanced transmissions.

Technological: Developments in dual clutch and continuously variable transmissions are improving efficiency and performance. Electronics and mechatronics enhance gear shifting functions. Use of lighter materials helps reduce transmission weight.

Key Takeaways

The Global Automotive Transmission Gears Market Size is expected to witness high growth over the forecast period supported by rising vehicle production and sales globally. The Asia Pacific region currently dominates the market led by strong growth in China and India. Increasing construction of manufacturing plants by OEMs and rising middle class populations are fueling vehicle ownership in these developing countries.

Regional analysis: The Asia Pacific region is estimated to be the fastest growing as well as the largest market for automotive transmission gears during the forecast period. Countries such as China, India, Japan, and South Korea are major automotive hubs witnessing high vehicle sales. Rising disposable incomes are increasing automobile ownership while growing local manufacturing plants by OEMs are supporting regional gear demand.

Key players: Key players operating in the automotive transmission gears market are Novartis AG, Gilead Sciences, Inc., Castle Creek Biosciences, Inc., Lineage Cell Therapeutics, Inc., Transgene SA, Cellectis, ImmunityBio, Inc., Sorrento Therapeutics, bluebird bio, Inc., Arcellx, Sana Biotechnology, Inc., Biodesix, Inc, and Laurus Labs. Novartis AG and Gilead Sciences, Inc. are the largest players focusing on research and development of new cell therapies.

1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it