July 13, 2024
Automotive Transmission Gears Market
Ict

Automotive Transmission Gears Market is Expected to be Flourished by Growing Demand for Fuel Efficient Vehicles

Automotive transmission gears play a vital role in transferring power from the engine to the wheels. Growing environmental concerns regarding vehicular emissions have led to increased demand for fuel efficient vehicles equipped with automatic transmission systems. Leading automakers are focusing on developing more advanced automatic transmission gears that can maximize fuel economy. For instance, dual clutch transmission incorporates two separate clutch assemblies and gear sets within one transmission case, allowing for quicker gear shifts and improved fuel efficiency compared to a conventional automatic transmission.

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:

Growing demand for fuel efficient vehicles is expected to be a major driver for the automotive transmission gears market over the forecast period. Stringent emission norms implemented by regulatory bodies across regions are compelling automakers to introduce more advanced transmission technologies. For example, the Corporate Average Fuel Economy (CAFE) standards in the U.S. mandate an average fuel economy of 40.3–41 mpg for new passenger cars and trucks by model year 2026. This is anticipated to boost adoption of automatic transmissions featuring dual clutch or continuously variable technologies over the coming years. Furthermore, continuous technological advancements such as development of lightweight gears using stronger alloy materials will improve transmission efficiency and fuel economy of vehicles. However, high costs associated with manufacturing of cutting-edge transmission gears may limit market growth to some extent over the forecast period.

Segment Analysis:

The automotive transmission gears market can be segmented into automatic transmission, dual-clutch transmission, and manual transmission by transmission type. Among these, the automatic transmission segment accounts for the major share owing to its increasing demand in passenger and commercial vehicles. Customers are increasingly preferring automatic transmissions over manual as they are more convenient to use in city traffic and provide comfortable driving experience.

PEST Analysis:

  • Political: Governments across countries are supporting the automotive industry through various initiatives and policies for promoting electric vehicles. This is positively impacting the demand for transmission components.
  • Economic: Rising disposable incomes, economic growth, and urbanization are increasing vehicle ownership, which is driving the automotive transmission gears market. Lower interest rates and easy financing options are also boosting sales.
  • Social: Growing distances between homes and offices/educational institutions are leading to increased vehicle dependency for daily commuting. This is propelling the demand for passenger vehicles and supporting market growth.
  • Technological: Advancements in transmission technology such as development of nine-speed and ten-speed automatic transmissions are helping automakers improve fuel efficiency. Addition of more gears allows engines to stay in optimum RPM ranges.

Key Takeaways:

The Global Automotive Transmission Gears Market Growth  is expected to witness high supported by increasing vehicle production across the world. The global Automotive Transmission Gears Market is estimated to be valued at US$ 28567 million in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030.

Regional analysis

Asia Pacific accounts for more than half of the global automotive transmission gears market share led by China, India, Japan, and South Korea. Strong economic growth, rising disposable incomes, and increasing vehicle ownership in these countries are fueling part replacements and new vehicle demand. Southeast Asian countries are also emerging as high potential markets.

Key players

Key players operating in the automotive transmission gears market are American Axle & Manufacturing Holdings Inc., Dynamatic Technologies Limited, Robert Bosch GmbH, ZF Friedrichshafen AG, Gleason Corporation, and others. American Axle & Manufacturing Holdings Inc. and ZF Friedrichshafen AG are the leading manufacturers with strong product portfolio and global presence.

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