Automotive Transmission Gears Market By Type (Manual Transmission Gears, Automatic Transmission Gears, Dual-Clutch Transmission Gears, Continuously Variable Transmission (CVT) Gears), By Material (Steel, Aluminum, Composite Materials), By Application (Passenger Vehicles, Commercial Vehicles, Electric Vehicles, Heavy-Duty Vehicles), By Gearbox Type (Manual Gearbox, Automated Manual Transmission (AMT), Electronic Controlled Automatic Transmission (ECAT)), By End-Use (OEMs (Original Equipment Manufacturers), Aftermarket), and By Region; Global Insights & Forecast (2024 - 2030)

As per Intent Market Research, the Automotive Transmission Gears Market was valued at USD 18.5 billion in 2023 and will surpass USD 26.8 billion by 2030; growing at a CAGR of 5.5% during 2024 - 2030.

The automotive transmission gears market plays a critical role in the overall performance, efficiency, and driving experience of vehicles. Transmission gears are essential components that facilitate the smooth transfer of power from the engine to the wheels, enabling vehicles to operate efficiently across various speeds. With the growing demand for fuel-efficient and high-performance vehicles, the market for transmission gears has seen considerable advancements in technology, material selection, and manufacturing processes. This growth is fueled by factors such as the increasing popularity of automatic transmissions, the shift towards electric vehicles (EVs), and the rise in demand for advanced transmission systems for improved vehicle performance.

As automotive manufacturers focus on enhancing driving comfort, fuel efficiency, and performance, the transmission gears market is expected to evolve with innovations such as dual-clutch and continuously variable transmissions (CVT), which provide smoother gear shifts and optimized fuel consumption. The increasing adoption of electric vehicles, which often use specialized transmission systems, is further driving the demand for advanced transmission gear solutions. With ongoing technological advancements and evolving consumer demands, the market for automotive transmission gears is poised for continued growth, especially in emerging markets.

Automatic Transmission Gears Segment is Largest Owing to Demand for Ease of Driving and Fuel Efficiency

The automatic transmission gears segment dominates the automotive transmission gears market due to the growing consumer preference for convenience and ease of driving. Automatic transmissions are favored for their ability to shift gears without manual input, offering a smoother and more user-friendly driving experience. This is particularly true for passenger vehicles, where convenience and driving comfort are high priorities. The increasing demand for automatic transmissions in both conventional and electric vehicles, driven by technological advancements and consumer preferences, is supporting the dominance of this segment.

Automatic transmission gears also contribute to improved fuel efficiency, as modern systems are designed to optimize gear shifts based on driving conditions, ensuring that the engine operates at its most efficient RPM. The introduction of features such as electronic control and shift-by-wire technology has further enhanced the performance of automatic transmissions, making them more appealing to a broad range of consumers. As the automotive industry continues to prioritize fuel efficiency and comfort, the automatic transmission gears segment is expected to maintain its leadership position in the market.

Electric Vehicles Segment is Fastest Growing Due to the Rise of Sustainable Mobility

The electric vehicle (EV) segment is the fastest-growing in the automotive transmission gears market, driven by the global shift towards sustainable mobility and the increasing adoption of electric vehicles. Unlike traditional internal combustion engine (ICE) vehicles, electric vehicles often require different transmission systems, as they do not have multiple gears. However, advancements in EV transmission technology, such as single-speed gearboxes and specialized electric vehicle gear sets, are driving the demand for transmission gears in this segment.

Electric vehicles benefit from the use of advanced transmission gears designed to optimize the performance of electric drivetrains, ensuring efficient power delivery and maximizing range. With governments around the world implementing stricter emission regulations and offering incentives for EV adoption, the demand for electric vehicles is expected to rise significantly. As a result, the automotive transmission gears market is witnessing a surge in the need for transmission systems tailored to electric vehicles, positioning this segment for rapid growth in the coming years.

Steel Material is Largest Owing to Strength and Durability

The steel material segment is the largest in the automotive transmission gears market due to the material's inherent strength, durability, and ability to withstand high levels of stress. Steel is commonly used in the production of transmission gears for both manual and automatic systems, as it provides the necessary toughness to handle the forces generated during gear shifts and vehicle operation. Steel gears are particularly popular in commercial and heavy-duty vehicles, where high-performance and durability are essential for long-term reliability.

Steel transmission gears are also cost-effective compared to other materials, making them a preferred choice for many manufacturers, especially in mass production. While alternative materials such as aluminum and composite materials are gaining traction for their lightweight and fuel efficiency benefits, steel continues to dominate the market due to its proven performance and widespread use in the automotive industry.

OEMs Sales Channel is Largest Due to High Production Volumes and Demand for Customization

The OEMs (Original Equipment Manufacturers) sales channel is the largest in the automotive transmission gears market, primarily due to the high production volumes of transmission gears for new vehicles. Automakers rely on OEMs to supply high-quality transmission gears that meet the specific requirements of their vehicles. OEMs also offer the benefit of customization, with transmission gears being tailored to the unique performance needs of different vehicle types, including passenger vehicles, commercial vehicles, and electric vehicles.

The OEM sales channel is further supported by the increasing demand for advanced transmission systems in new vehicles, such as automated manual transmissions (AMT) and electronic-controlled automatic transmissions (ECAT). As automakers continue to prioritize efficiency, performance, and safety in their vehicles, the demand for transmission gears supplied by OEMs is expected to grow, ensuring the segment's dominance in the market.

15-20 Inches Gearbox Type Segment is Largest Owing to Versatility in Vehicle Applications

The 15-20 inches gearbox type segment is the largest in the automotive transmission gears market, as it strikes a balance between performance and versatility across a wide range of vehicle types. This gearbox type is commonly used in passenger vehicles, commercial vehicles, and electric vehicles, offering optimal gear ratios for both everyday driving and heavy-duty applications. The 15-20 inches range provides the flexibility required for various vehicle sizes, making it the go-to choice for most automotive manufacturers.

The widespread adoption of 15-20 inches gearboxes can be attributed to their ability to deliver efficient power transfer and smooth gear shifts while maintaining fuel efficiency. These gearboxes are used in a variety of applications, from passenger cars to commercial and heavy-duty vehicles, making them crucial to the global transmission gears market. As the demand for performance-driven and fuel-efficient vehicles rises, this gearbox type segment is expected to continue leading the market.

Asia-Pacific Region is Fastest Growing Due to Increasing Vehicle Production and EV Adoption

The Asia-Pacific region is the fastest-growing market for automotive transmission gears, primarily driven by the rapid expansion of the automotive industry in countries like China, India, and Japan. The region's automotive market is characterized by high vehicle production volumes and an increasing demand for electric vehicles, both of which contribute to the rising demand for transmission gears. China, in particular, has become a global leader in the production and adoption of electric vehicles, further driving the need for specialized transmission systems in the region.

As the automotive industry in Asia-Pacific continues to evolve, driven by both traditional vehicles and the shift toward electric mobility, the region is expected to witness significant growth in the automotive transmission gears market. The rise in consumer demand for high-performance and fuel-efficient vehicles, along with government incentives for EV production and adoption, makes Asia-Pacific a key region for the continued growth of this market.

Competitive Landscape and Leading Companies

The automotive transmission gears market is highly competitive, with several key players dominating the global landscape. Leading companies in the market include ZF Friedrichshafen AG, BorgWarner Inc., Aisin Seiki Co., Ltd., and Eaton Corporation. These companies are at the forefront of developing cutting-edge transmission technologies, including dual-clutch transmissions (DCT), continuously variable transmissions (CVT), and electronic-controlled automatic transmissions (ECAT).

The competitive landscape is also marked by continuous innovation, as manufacturers seek to enhance gear efficiency, reduce emissions, and improve overall vehicle performance. Strategic partnerships, mergers, and acquisitions are common in this market, as companies aim to strengthen their product portfolios and expand their market presence. With the automotive industry increasingly focused on sustainability and performance, the competitive environment in the transmission gears market is expected to remain dynamic, with companies investing heavily in R&D to meet evolving consumer and regulatory demands.

Recent Developments:

• In November 2024, BorgWarner Inc. announced the launch of a new line of dual-clutch transmission gears for electric vehicles.
• In October 2024, ZF Friedrichshafen AG unveiled its new transmission system designed for next-generation hybrid vehicles.
• In September 2024, Aisin Seiki Co., Ltd. introduced an advanced automated manual transmission (AMT) system for commercial vehicles.
• In August 2024, Tremec S.A. collaborated with an electric vehicle manufacturer to provide high-performance transmission gears for electric trucks.
• In July 2024, Getrag Transmission GmbH (Magna International) expanded its portfolio with a new line of continuously variable transmission (CVT) gears for passenger cars.

List of Leading Companies:

• ZF Friedrichshafen AG
• Aisin Seiki Co., Ltd.
• BorgWarner Inc.
• GKN Automotive
• JATCO Ltd.
• Eaton Corporation
• Getrag Transmission GmbH (Magna International)
• Hyundai Dymos Inc.
• Tremec S.A.
• Ricardo plc
• Fuji Heavy Industries Ltd.
• Delphi Technologies (BorgWarner)
• Valeo S.A.
• Allison Transmission Inc.
• Schaeffler Technologies AG & Co. KG

Report Scope: