Automotive Gears Market Size, Share, Growth Analysis, By Material(Metallic gears and non-metallic gears), By Application(Passenger cars, light commercial vehicles (LCVs), and heavy commercial vehicles (HCVs)), By Region - Industry Forecast 2024-2031

Global Automotive Gears Market Drivers

Growing Demand for Electric and Hybrid Vehicles

• With the increasing focus on reducing carbon emissions and improving fuel efficiency, there is a growing demand for electric and hybrid vehicles. These vehicles require different types of gears, such as planetary gears and helical gears, which are designed to optimize power transmission and minimize energy loss. As a result, the demand for automotive gear is expected to increase significantly in the coming years.

Rising Demand for Automatic Transmission Systems

• The demand for automatic transmission systems in vehicles is increasing due to their convenience and ease of use. Automatic transmission systems require a greater number of gears compared to manual transmission systems, which is driving the demand for automotive gears. Additionally, the increasing popularity of sports utility vehicles (SUVs) and light commercial vehicles (LCVs) is also expected to boost the demand for gears.

Global Automotive Gears Market Restraints

Fluctuating Raw Material Prices

• The automotive gears market faces a substantial hurdle due to the instability and regular changes in the costs of essential raw materials, including steel and aluminum. These price fluctuations make it difficult for manufacturers to ensure consistent pricing and sustain profitability. Consequently, the fluctuating raw material prices present a significant obstacle to the growth of the automotive gears market.

Increasing Competition from Substitute Technologies

• The automotive industry is constantly evolving, and new technologies are emerging that could potentially replace traditional gear systems. For instance, electric vehicles use electric motors that do not require gears, which could potentially reduce the demand for automotive gears. As a result, the increasing competition from substitute technologies is a major restraint for the automotive gears market.