by Market Overview:
The automotive transmission gears market involves gears used in transmission systems of vehicles. Automatic and manual transmissions use gears to transfer torque from the engine to the axles. Gears enable varying output speeds according to requirements. Different types of gears used include spur gears, bevel gears, helical gears, worm gears, and planetary gears. Passenger cars constitute a major application area of transmission gears.
Market Dynamics:
Increasing production of passenger cars globally is a major driver of the market. According to OICA, global passenger car production reached over 73 million units in 2021, registering a growth of 4% over 2020. Developing regions such as Asia Pacific witnessed higher growth rates. Rising disposable incomes in these regions is driving car ownership.
Another key factor is growing demand for vehicles with automatic transmissions. Automatic transmissions require more gears compared to manual transmissions, thereby augmenting demand. According to IHS Markit, the share of automatic transmissions in new passenger vehicles is estimated to reach 65% by 2025 from about 60% currently.
SWOT Analysis
Strength: The automotive transmission gears market enjoys strong growth prospects owing to rising automotive production worldwide. Growing demand for fuel-efficient vehicles boosts the demand for advanced transmission gears. Key players are investing heavily in R&D to develop cutting-edge transmission gear technologies.
Weakness: Volatility in raw material prices hugely impacts the profit margins of market players. High costs associated with manufacturing of advanced transmission gears increases the prices of vehicles.
Opportunity: Emerging economies in Asia Pacific and Latin America exhibit high growth potential due to rising disposable incomes. Developing electric vehicles offer new opportunities for transmission gear manufacturers to supply customized products.
Threats: Slowdown in the global automotive industry poses major challenges for the growth of the automotive transmission gears market. Shift towards electric mobility poses a long-term threat to demand for conventional transmission gears.
Key Takeaways
The Global Automotive Transmission Gears Market Demand is expected to witness high growth, exhibiting CAGR of 8.3% over the forecast period, due to increasing demand for fuel-efficient and high-performance vehicles.
Regional analysis
Asia Pacific dominates the global automotive transmission gears market and is expected to maintain its leading position over the forecast period. Presence of large automotive hubs such as China, India, and Japan drives the demand for automotive transmission gears in the region. Growing middle-class population and rising disposable incomes further stimulates automotive sales and boosts market growth.
Key players related content comprises
Key players operating in the automotive transmission gears market include 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. Key players are focusing on new product development and expansion strategies to gain a competitive edge in the market.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
