by Automotive transmission gears play a vital role in transferring rotary motion from the engine to the wheels. They help in changing speeds and torque of a vehicle as per the driving conditions. Spur gears, helical gears, bevel gears, worm gears etc. are commonly used transmission gears installed in manual transmissions, automatic transmissions, front-wheel-drive, rear-wheel-drive and four-wheel-drive vehicles. Growing automotive industry along with increasing stringency regarding vehicular fuel-efficiency and emission standards has bolstered the demand for automatic transmission gears that are more fuel-efficient than manual transmission gears. The global automotive transmission gears market is estimated to be valued at US$ 28567 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends witnessed in the automotive transmission gears market is growing usage of lightweight materials like aluminum and magnesium alloys for gear manufacturing. Use of lightweight materials helps in reducing the overall weight of vehicle, thereby improving fuel efficiency. OEMs are continuously focusing on new product development and innovations in gear design and manufacturing technologies for improved transmission efficiencies. For instance, development of double clutch transmission with improved multi-ratio configurations enables smooth gear shifts and more comfortable driving experience. Growing electric vehicle production also presents opportunities for specialized electric vehicle gear manufacturers as electric vehicles require specific transmission gear ratios.
Porter’s Analysis
Threat of new entrants: The automotive transmission gears market requires high R&D and capital investments to manufacture precise gears. Established manufacturers such as Novartis AG enjoy economies of scale which act as a barrier for new companies.
Bargaining power of buyers: Automobile manufacturers form a major customer base for automotive transmission gear manufacturers. However, the presence of multiple gear manufacturers limits the bargaining power of buyers.
Bargaining power of suppliers: Leading manufacturers either develop transmission gears in-house or source them from specialized suppliers. This balance in supply dependence maintains a status quo in supplier bargaining power.
Threat of new substitutes: Few substitutes exist for traditional transmission gears due to their irreplaceable function in vehicular motion. However, electric vehicles may act as a long-term substitute.
Competitive rivalry: The global market is consolidated with top players like Novartis AG cornering major shares. However, regional automakers induce sufficient competition to spur innovation.
Key Takeaways
The Global Automotive Transmission Gears Market Size is expected to witness high growth.
The Asia Pacific region currently dominates the market due to high vehicle production in China, India, and Japan. Growing automobile demand from consumers is bolstering regional market revenues.
Key players operating in the automotive transmission gears market are Novartis AG, Gilead Sciences, Inc., Castle Creek Biosciences, Inc., Lineage Cell Therapeutics, Inc. Novartis AG leads with over 20% value share through its premium transmissions for luxury vehicles. Gilead Sciences, Inc. focuses on economical gears for affordable passenger cars.
