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| Automotive Transmission Gears Market |
The global automotive transmission gears market is estimated to be valued at US$24,356.1Mn in 2023 and is expected
to exhibit a CAGR of 8.3% over the
forecast period 2023-2030, according to a new report published by Coherent
Market Insights.
Market Overview:
Automotive transmission gears are an essential component of vehicles,
facilitating the transfer of power from the engine to the wheels. These gears
play a crucial role in ensuring smooth and efficient vehicle operation. The
growing demand for fuel-efficient vehicles is driving the market for automotive
transmission gears, as manufacturers strive to develop advanced and lightweight
gears to improve fuel economy. Moreover, the increasing production of electric
vehicles and the integration of advanced technologies in automotive
transmission systems are further propelling market growth.
Market Key Trends:
One key trend in the automotive transmission gears market is the growing
adoption of advanced materials in gear manufacturing. Manufacturers are increasingly
using lightweight and high-strength materials such as carbon fiber composites,
aluminum alloys, and advanced polymers to develop gears that are not only
durable but also help reduce the overall weight of the vehicle. This trend is
driven by the need to enhance fuel efficiency and reduce carbon emissions.
Advanced materials offer excellent thermal resistance, improved wear
resistance, and reduced noise levels, making them ideal for automotive
transmission gears.
Porter's Analysis:
Threat of new entrants: The threat of new entrants in the Automotive
Transmission Gears Market is moderate. Although there are significant
barriers to entry such as high capital requirements and strong brand
recognition of existing players, the market does provide opportunities for new
players due to the increasing demand for automotive transmission gears.
However, established companies with economies of scale and established
distribution networks may limit the market share available for new entrants.
Bargaining power of buyers: The bargaining power of buyers in the automotive
transmission gears market is moderate. Buyers, particularly OEMs and
aftermarket suppliers, have the ability to negotiate prices and terms with
manufacturers. However, the limited number of key suppliers and the high
switching costs associated with changing suppliers can limit the bargaining
power of buyers.
Bargaining power of suppliers: The bargaining power of suppliers in the
automotive transmission gears market is moderate to high. Suppliers of raw materials
and components, such as steel and gears, hold significant bargaining power due
to their role in the production process. Additionally, the limited number of
key suppliers and their specialized manufacturing capabilities give them
leverage in negotiating prices and terms with manufacturers.
Threat of new substitutes: The threat of new substitutes in the automotive
transmission gears market is low. Transmission gears are essential components
for automotive vehicles, and there are limited alternatives that can perform
the same function. While electric vehicles may reduce the demand for
traditional transmission systems in the long term, the adoption of electric
vehicles is still relatively low, limiting the immediate threat of substitutes.
Competitive rivalry: The competitive rivalry in the automotive transmission
gears market is high. The market is dominated by a few key players who compete
based on factors such as product quality, price, and technological
advancements. Intense competition and the constant introduction of new products
and technologies drive innovation in the market.
Key Takeaways:
The global automotive transmission gears market is expected to witness high
growth, exhibiting a CAGR of 8.3%
over the forecast period of 2023-2030. This growth can be attributed to the
increasing demand for automotive vehicles, especially in emerging economies.
Factors such as urbanization, rising disposable income, and changing consumer
preferences are driving the demand for vehicles, thereby increasing the demand
for transmission gears.
In terms of regional analysis, Asia Pacific is expected to be the
fastest-growing and dominating region in the automotive transmission gears
market. The region is witnessing rapid industrialization, leading to increased
automotive production and sales. Additionally, favorable government
initiatives, such as Make in India and China's Belt and Road Initiative, are
further boosting the growth of the automotive industry in this region.
Key players operating in the automotive transmission gears market include
American Axle & Manufacturing Holdings Inc., AmTech International, Bharat
Gears Ltd, Cone Drive, Dynamatic Technologies Limited, Franz Morat Holding GmbH
& Co. KG, Gleason Corporation, IMS Gear SE & Co. KGaA, Robert Bosch GmbH,
RSB Group, Showa Corporation, UAG LLP, and ZF Friedrichshafen AG. These players
are focusing on product innovation, strategic partnerships, and expansion
strategies to maintain their market position and cater to the growing demand
for automotive transmission gears.
Overall, the automotive transmission gears market is poised for significant
growth, driven by increasing vehicle production and technological advancements.
The market offers opportunities for both existing players and new entrants, but
competition remains intense. Manufacturers need to focus on product quality,
cost efficiency, and differentiation strategies to stay ahead in this
competitive market.