Global Automotive Gears Market - Growth, Trends and Forecast (2018 - 2023)
Automotive Gears Market is forecasted to grow over 6% in the year 2018 and estimated to reach USD 38 billion by 2023. Gears have established themselves as a major component in automotive systems. Gears are found extensively in automotive differential systems, steering systems, and transmission systems. The global automotive production grew by 2,225,965 vehicles in 2017 compared to 2016. The number grew from 94,976,569 in 2016 to 97,302,534 in 2017, indicating a considerable growth in production statistics during the last year. The global sales figure grew by approximately 3% during the past year.
New Demands from the New Market
With the growing demand for auto-transmission systems and smoother gear-shift-ratio systems is expected to propel the market for gears in transmission systems towards a higher CAGR by 2023. Lightweight and highly durable aluminum and composite gears are estimated to gain higher popularity with their market, registering a significant growth in the coming 5 years. In 2017, Differential system gears segment dominated the market and the transmission system gears segment is expected to dominate the market during 2018-2023 due to the rising adaptation of automatic transmission in passenger cars.
Automotive gears are of various types, which include spur gear, bevel gear, planetary gear, helical gear, rack and pinion, and others. An automatic transmission is a type of motor vehicle transmission that can automatically change gear ratios as the vehicle moves, which prevent the driver from shifting the gears manually. Increasing demand for the automatic transmission in vehicles is one of the growing trends witnessed in the automotive industry, which has increased the demand of the automotive gears due to its automatic function that provides ease in the driving of the vehicle. The automatic transmission also helps in achieving better fuel efficiency and less wear and tear of the gears, which results in a long life of gears. The option of the Automatic Transmission is also available in the low priced passengers cars, e.g. Suzuki providing Automatic Transmission System in its cars in India, which usually consist of low priced cars and is also introducing 6 Speed Manual Gear Transmission for its cars in India.
The planetary gears used in automobiles are expected to account for the largest market during the forecast period, attributed to the increasing demand for low-carbon-footprint technologies. The planetary gear systems enable vehicle’s engine to run at an optimum level, thereby reducing engine losses that may result from friction and lubrication.
The Rise of the Electric Vehicle
With rise of the electronic vehicle market predicted around the year 2020, the automotive gear market is anticipated to be impacted negatively because of not housing components, like the transmission system or the differential system or the engine itself. Electric motors have a much larger RPM range than the typical internal combustion engine. And, unlike a gas or diesel engine, an electric motor makes its best power output over an incredibly broad RPM range. So, instead of packing the car with numerous gears to keep the engine in its happy zone, designers of electric cars just pick a gear ratio that provides a good compromise between acceleration and top speed. And with the typical electric motor capable of sustaining 20,000 RPM, the top speed often isn't even a limiting factor.
Rise in Production of Passenger and Commercial Vehicles
In the year 2017, Asia-Pacific region dominated the market, with China being a key contributor to the growth of the automotive gears market. Asia-Pacific is the leading market for automotive gear. With increasing, vehicle production in countries, such as India and China as well as the manufacturers’ focus on increasing production capacity, demand for automotive gear is anticipated to grow significantly in the forecasted years. Rising purchasing power with a dream and a need to own a car, low penetration of automobiles, and infrastructure development in emerging nations have increased the demand for personal transportation and commercial vehicles. Increasing operational performance, improving drivability (aligned with the current technology) and ensuring safe transport of cargo and passengers is the top priority of automobile manufacturers. Additionally, increasing need for fuel-efficient vehicles along with 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 regions.
Key Players: BHARAT GEARS LTD., SHOWA CORPORATION, TAIWAN UNITED GEAR CO. LTD., ZF TRW amongst others.
March 2018: Latest Maruti Suzuki Swift is expected to be equipped with a 6-speed transmission system
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Provides latest insights into the Automotive Gears Market
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Analyzing various perspectives of the market with the help of Porter’s five forces analysis
Detailed analysis on the region that is expected to witness the highest growth
Identify the latest developments, market shares, and strategies employed by the major market players
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