Automotive transmission gears are an integral component of automobile's transmission system, which is used to change the gear ratio between the engine and wheels for better acceleration and higher fuel efficiency. The primary function of transmission gears is to transfer the engine power to the vehicle wheels through transmission shafts and differential gears. Growing vehicle production across the world due to rising disposable incomes and changing lifestyles is generating significant demand for automotive transmission gears. The global automotive transmission gears market is estimated to be valued at US$ 28567 Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The growing demand for electric vehicles provides significant opportunities for automotive transmission gears market over the forecast period. With stringent emission norms and push for emission-free mobility, global electric vehicle sales are anticipated to grow substantially in the coming years. As electric vehicles use single speed gearboxes to support torque generation and drivability, the demand and complexity of transmission gears is expected to increase manifold. Leading electric vehicle manufacturers are focusing on developing multi-gear transmissions with wider gear ratios to improve efficiency. The increasing adoption of electric vehicles worldwide represents a major market opportunity for automotive transmission gears manufacturers to tap the emerging EV powertrain requirements.
Porter’s Analysis
Threat of new entrants: The automotive transmission gears market has moderate barrier for new entrants due to high initial capital investment required to operate manufacturing facilities.
Bargaining power of buyers: With the presence of many established manufacturers, the bargaining power of buyers is high in this market. Buyers can negotiate for better prices and quality.
Bargaining power of suppliers: The raw material suppliers have moderate bargaining power due to availability of substitute materials.
Threat of new substitutes: There is low threat from substitutes due to lack of close substitutes for automotive transmission gears.
Competitive rivalry: The competitive rivalry is high among existing players to gain market share.
SWOT Analysis
Strength: Established distribution network and brand name of key players. Growing demand for fuel efficient vehicles is driving the market.
Weakness: Volatility in raw material prices can affect profit margins. Increased cost of R&D to develop new technologies.
Opportunity: Shift towards automatic transmission in commercial vehicles provide new opportunities. Growing automotive industry in developing countries will boost demand.
Threats: Strict government regulations regarding vehicular emissions can hamper growth. Electric vehicles pose threat to demand.
Key Takeaways
The Global Automotive Transmission Gears Market Size is expected to witness high growth.
Key regional factors influencing growth include rapid rise of automotive production in China and India. Growing disposable income and changing lifestyles have increased automobile ownership in these countries.
Key players operating in the automotive transmission gears market are Novartis AG, Gilead Sciences, Inc., Castle Creek Biosciences, Inc., Lineage Cell Therapeutics, Inc., Transgene SA, Cellectis, ImmunityBio, Inc., Sorrento Therapeutics, bluebird bio, Inc., Arcellx, Sana Biotechnology, Inc., Biodesix, Inc, and Laurus Labs. Key players are focused on developing new technology and collaboration for product innovation.
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