Automotive transmission gears forms an essential component of automotive transmission system and are used to transfer the torque produced by an engine to the driving wheels of vehicles. Automotive transmission gears control the rotation of engine output shaft in desired manner as per vehicle requirements. The gears can alter the engine speed and torque using gear sets and clutch assemblies to achieve gears of different ratios in automobiles. Gears play critical role in determining vehicle driveability and fuel efficiency.

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 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rising automobile production remains a key driver for the automotive transmission gears market growth over the forecast period. According to International Organization of Motor Vehicle Manufacturers, global automobile production reached a record level of over 90 million units in 2021, increasing more than 5% from 2020 production levels. Growing demand for passenger and commercial vehicles across regions like Asia Pacific, North America, and Europe is expected to augment the need for transmission systems including gears, fueling market expansion. The requirement of developing fuel-efficient and high-performance transmission with reduced noise and vibration further drives innovation in automotive transmission gear designs. However, increasing adoption of electric vehicles may limit the demand growth of conventional transmission gears market in long-term.

SWOT Analysis:

Strengths: The automotive transmission gears market has strong growth prospects due to rising demand for vehicles across the globe. Modern automatic transmissions are more efficient and environment-friendly than traditional manual options. Technological advances in gear manufacturing have resulted in stronger, lighter, and more durable gears.

Weaknesses: Developing advanced transmission systems requires huge investments in R&D. Frequent technology upgrades pose challenges for component manufacturers to maintain consistency and quality. Dependence on automotive sales makes the market susceptible to economic slowdowns. Unorganized aftermarket suppliers provide low-cost substitutes.

Opportunities: Growth of electric vehicles provides opportunities to develop innovative gearbox designs optimized for electric drivetrains. Adoption of CVT and DCT technologies in developing nations will boost demand. Expanding into geographical areas with emerging automotive hubs can help diversify business risks. Collaborating with tier-1 suppliers ensures readiness for upcoming platform shifts.

Threats: Stringent emission norms encourage more electric vehicles, posing a long-term threat. Trade tensions and restrictions affect profitability of multinational manufacturers. Increased localization by OEMs poses margin pressures. Low-cost countries emerging as manufacturing hubs intensify competition.

Key Takeaways:

The Global Automotive Transmission Gears Market Demand is expected to witness high growth and reach a market size of US$ 28567 Mn by 2030 registering a CAGR of 8.3% during the forecast period.

North America currently dominates the market owing to strong demand for luxury and performance vehicles in countries like the US and Canada. Asia Pacific is expected to grow at the fastest pace led by developing nations like India and Indonesia where vehicle ownership is increasing rapidly.  Asia Pacific accounts for over 40% of the global market currently and is projected to continue its dominance through 2030. China, India, and Japan are major production and sales hubs for automotive components. Governments strongly support local manufacturing through favorable policies and incentives. OEMs are investing billions of dollars to boost regional capacities as Asia Pacific will drive the majority of new vehicle sales globally over the next decade.

Key players: Key players operating in the automotive transmission gears market are American Axle & Manufacturing Holdings Inc., AmTech International, Bharat Gears Ltd, Cone Drive, Dynamatic Technologies Limited, Franz Morat Holding GmbH & Co. KG, Gleason Corporation, IMS Gear SE & Co. KGaA, Robert Bosch GmbH, RSB Group, Showa Corporation, UAG LLP, and ZF Friedrichshafen AG. Major manufacturers regularly launch new products catering to changing drivetrain technologies and emission norms. Partnerships and M&As allow companies to access wider geographical footprints and innovative solutions.

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