Automotive Gears Market Report 2026

The automotive gears market size has grown strongly in recent years. It will grow from $43.14 billion in 2025 to $46.45 billion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to expansion of passenger and commercial vehicle production, widespread use of manual and automatic transmissions, increasing demand for durable drivetrain components, growth of internal combustion engine vehicles, standardization of gear manufacturing processes.

The automotive gears market size is expected to see strong growth in the next few years. It will grow to $61.27 billion in 2030 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to increasing penetration of electric vehicles, rising adoption of advanced transmission systems, growing focus on efficiency and performance optimization, expansion of autonomous vehicle development, increasing investments in precision gear manufacturing. Major trends in the forecast period include increasing demand for high-precision transmission gears, rising adoption of gears for electric drivetrains, growing use of lightweight and non-metallic gears, expansion of planetary gear systems in evs, enhanced focus on noise and vibration reduction.

Increasing vehicle production is expected to propel the growth of the automotive gears market going forward. Vehicle production refers to the large-scale manufacturing and assembly of complete, functional vehicles that are ready for operational use. The rise in vehicle production is primarily driven by growing demand for automobiles in emerging economies, supported by urbanization, rising disposable incomes, and expanding transportation needs. Automotive gears play a critical role in vehicle manufacturing by enabling efficient power transmission, smooth speed variation, and reliable drivetrain performance. As global vehicle output increases, demand for high-quality and durable gear systems continues to rise. For instance, in April 2024, according to the Serbian Association of Vehicle and Parts Importers, a Serbia-based professional automotive organization, 93,546,599 vehicles, including 67,133,570 passenger vehicles, were produced worldwide in 2023, compared with 84,830,376 vehicles in 2022. Therefore, the increase in vehicle production is driving the growth of the automotive gears market.

Major companies operating in the automotive gears market are focusing on introducing high-performance transmission technologies to gain a competitive edge. High-performance transmission systems are designed to improve fuel efficiency, deliver smoother power transfer, and enhance overall driving dynamics. Continuous innovation in gear manufacturing and machining technologies supports the production of precision components required for modern transmission systems. For instance, in October 2024, Nidec Machine Tool Corporation, a Japan-based company specializing in machine tools and cutting technologies, launched its new ZFA Series of gear grinders. The ZFA Series, comprising the ZFA160 and ZFA260 models, is engineered to meet rising global demand for high-precision gear machining. The ZFA160 supports gears with external diameters up to 160 mm, while the ZFA260 accommodates gears up to 260 mm. These machines significantly reduce non-machining time by approximately 50% compared with conventional models, achieving industry-leading efficiency and productivity.

In July 2025, Adkev, a US-based manufacturing company, acquired Winzeler Gear for an undisclosed amount. Through this acquisition, Adkev aims to expand its product portfolio and strengthen its manufacturing capabilities in precision molded and stamped gear components. The transaction enhances Adkev’s ability to serve automotive and related industrial applications that require high-volume, high-precision gear solutions. Winzeler Gear is a US-based manufacturer specializing in the design and production of stamped and injection-molded precision gears, primarily supplying gear components for automotive and mobility-related applications.

Major companies operating in the automotive gears market are Robert Bosch GmbH, ZF Friedrichshafen AG, Eaton Corporation plc, Dynamatic Technologies Limited, Dana Holding Corporation, NSK Ltd., Linamar Corporation, American Axle & Manufacturing Holdings Inc., Universal Auto Gears LLP, Altra Industrial Motion Corporation, Gleason Corporation, Univance Corporation, Neapco Inc., Franz Morat Group, Bharat Gears Limited, IMS Gear SE & Co. KGaA, RSB Transmissions Ltd., Framo Morat GmbH & Co. KG, Precipart Group Inc., Cone Drive Operations Inc., Taiwan United Gear Co. Ltd., Atlanta Gear Works Inc., Tracey Gear & Precision Shaft Inc., Showa Corporation, B.D. Industries (India) Pvt. Ltd., GKN plc.

Asia-Pacific was the largest region in the automotive gears market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive gears market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive gears market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive gears market consists of sales of torque converters, planetary gear set, output shaft, and clutch packs. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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