The automotive gears market is valued at USD 4.2 Billion in 2020 and is expected to reach USD 5.1 Billion by 2026. The automotive gears market is anticipated to register a CAGR of over 5.5% during the forecast period (2021-2026).
Gears are a significant component in automotive systems. The gears market growth is directly related to vehicle sales.
In the automotive market, a shift toward more expensive, energy-efficient units, such as seven and eight-speed automatic transmissions, may contribute to value gains. Additionally, sales of gears used in several relatively small but fast-growing applications, such as wind and solar power, are expected to increase significantly.
However, various factors are restraining the growth of the gear market, such as the growing demand for electric vehicles, due to rising emission regulations. The 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, respectively. Nevertheless, vehicle production around the world is declining due to the economic crisis, recent US-China trade conflicts, and on-going COVID-19 pandemic. The automotive gears market is expected to witness a decline throughout 2020, and a reduction in Y-o-Y growth rate in 2021.
Key Market Trends
Growing Demand of Electric Vehicle Hindering the Growth of the Automotive Gears Market
The electric vehicle market is rapidly growing across the world. The electric vehicle sales in Europe have significantly increased by 47% in the first quarter of 2018, in comparison to the first quarter of 2017. By 2040, nearly 54% of the new car sales and 33% of the global car fleet are likely to 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 are expanding their services across the world. For instance:
- China s BYD has built up an extensive production network in Europe 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 for promoting 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.
The 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 is Dominating the Automotive Gears Market
- Asia-Pacific dominated the automotive gears market, with China being a key contributor to the growth of the market studied. Asia-Pacific is the leading market for automotive gear. With the increasing vehicle production in countries, such as India and China, as well as the manufacturers’ focus on increasing production capacity, the demand for the automotive gear is anticipated to grow significantly in the future. The low penetration of automobiles and infrastructure development in emerging nations has increased the demand for personal transportation and commercial vehicles.
- Additionally, the increasing need for fuel-efficient vehicles and lightweight automotive parts are the two factors driving the growth of the market. Europe and North America are mature markets for the automotive gear, with the former holding the second-largest market share, followed by Asia-Pacific.
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.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter s Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Position
5.1.1 Skew Shaft Gears
22.214.171.124 Hypoid Gears
126.96.36.199 Worm Gears
5.1.2 Intersecting Shaft Gears
188.8.131.52 Straight Bevel Gears
184.108.40.206 Spiral Bevel Gears
5.1.3 Parallel Shaft Gears
220.127.116.11 Spur Gears
18.104.22.168 Rack and Pinion Gears
22.214.171.124 Herringbone Gears
126.96.36.199 Helical Gears
5.2 By Material
5.2.1 Ferrous Metals
5.2.2 Non-ferrous Metals
5.2.3 Other Materials (Composites and Plastics)
5.3 By Application
5.3.1 Steering Systems
5.3.2 Differential Systems
5.3.3 Transmission Systems
5.4.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.4.4 Latin America
188.8.131.52 Rest of South America
5.4.5 Middle-East and Africa
184.108.40.206 United Arab Emirates
220.127.116.11 South Africa
18.104.22.168 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 American Axle & Manufacturing Holdings Inc.
6.2.2 AmTech International
6.2.3 Bharat Gears Ltd
6.2.4 Cone Drive
6.2.5 Dynamatic Technologies Limited
6.2.6 Franz Morat Group
6.2.7 GKN PLC
6.2.8 Gleason Plastic Gears
6.2.9 IMS Gear SE & Co. KGaA
6.2.10 Robert Bosch GmbH
6.2.11 RSB Global
6.2.12 Showa Corporation
6.2.13 Taiwan United Gear Co. Ltd
6.2.14 Universal Auto Gears LLP
6.2.15 ZF Friedrichshafen AG
7 MARKET OPPORTUNITIES AND FUTURE TRENDS