Without gears it is nearly impossible to drive any machine or equipment. For rotary as well as linear movement it is necessary to use gears. The global automotive industry has prompted significant innovations in the area of transmission, eventually gears and driveline. The inventions are driven by the relentless quest towards greater fuel economy, lower emissions and improved driving experience. The markets for electric vehicles, semi-autonomous and autonomous vehicles and CNG and LPG vehicles are gaining pace and the concepts are streaming towards scalability. As a consequence, modern powertrains are anticipated and expected to be compatible for each segment, noiseless, ecological, maintain vehicle dynamics, and support active safety as well. The evolution of transmission technology is positively influencing automotive gears market. The modern automotive has witnessed evolution in gearboxes from 3 speed – 10 speed, also developments around 11-speed boxes triple clutch transmissions and reversible variable transmissions. Also, the quest towards ‘automatic driving’ technology is also adding impetus to the market. For instance, in 2018, HARMAN International, a subsidiary of Samsung dedicated towards connected technologies for automotive, showcased HARMAN’s and Samsung’s accumulated approach for establishing a network of associates and solutions to further develop Samsung’s DRIVELine, its novel open platform for automated driving solutions. Automotive gears plays a very significant role in order to make a vehicle function appropriately as it transmit force (torque) from one shaft to another. As the global automotive sector is foraying into various types of vehicles as mentioned above, the burgeoning sales of vehicles globally is assisting the global automotive gears market demand to progress tremendously. The most common types of gears and gear boxes delivered by OEMs in the market are spiral bevel gear, worm gear, and helical gear box. The global motor vehicle production in 2018 was 95.6 million units. The acceptance of novel automotive technologies by consumers is also a factor adding impetus to the market. For example, global electric car fleet surpassed 5.1 million in 2018 with sales almost doubling from the preceding year Similarly, opportunities in the global semi-autonomous and autonomous vehicles market is also estimated to be progressing at a global CAGR of 31.28% during the forecast period of 2019 – 2025.
The global automotive gears market size was evaluated to be $ 31.45 billion in 2018. Since gears are the fundamental constituent of the automotive transmission system, eventually the vehicle, opportunities in the market is estimated to be progressing at a global CAGR of 5.89% during the forecast period of 2019 – 2025.
An analysis of technological developments in modern automotive driveline and transmission systems positively influencing innovations in automotive gears market:
Developments in the automotive sector such as transition from front-wheel drive (FWD) to all-wheel drive (AWD) and innovations like E-CVT E-axle (electronically-controlled continuously variable transmission) for enhanced fuel efficiency is adding substantial impetus to innovations in automotive gears market. Instructions and enforcement such as Sustainable Development Goals (SDGs) by United Nations for enhanced fuel efficiency amalgamated with strict emission regulations by governments across the globe have enforced automotive OEMs (original equipment manufacturers) to implement the hybrid and electric vehicle technology. As a consequence, technological developments in the spectrum of electric and hybrid drivelines, transmissions and gears that includes automatic start-stop, regenerative braking, E-CVT and E-axle are the major driving forces of modern automotive gears market demand. The arrangement of driveline equipment contrasts for a Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), or Battery Electric Vehicle (BEV) as the prime source of power differ from internal combustion engine (fuel combustion) to batteries, hence the market is witnessing rampant developments in terms of variants as well.
As ‘Lightweight’ is a pivotal trend conquering automotive production, plastic gears are esteemed to be the future:
In terms of vehicle type, electric vehicle is estimated to be the fastest growing segment in global automotive gears market share. This segment is estimated to be progressing at an application CAGR of 6.88% during the forecast period of 2019 – 2025. The growth in the fleet of electric cars evinces the lead of electric vehicles. The global electric car fleet in 2018 surpassed 5.1 million and sales were recorded to be almost double than 2017. As the entire concept of electric vehicles dwell on curtailing global automotive carbon footprints, ‘lightweight’ is the resort sought by manufacturers to achieve Sustainable Development Goals (SDGs) targets. To achieve the objective of reducing body weight, OEMs are replacing traditional metals with engineered plastics in manufacturing of automotive equipment including gears. There are several advantages of plastic gearing that includes, reduced inertia and light weight because of the lower density of plastics, tendency to captivate intense and abrupt vibration due to enhanced elasticity, and noise reduction. For example, Amrut Gear Industries, India, are manufacturing an extensive array of PVC (polyvinyl chloride) plastic gears – nylon gears, PVC and transmission pinion gear shaft. Similarly, Yeh Der Enterprise Co. Ltd., China, manufactures an extensive array of plastic gears and gear that includes spur gear, worm gears, plastic pinion gear, plastic helical gear, and plastic bevel gear. The company also list several advantages of these unconventional gears, such as it less intricate to mold the material into complex shapes, hence it has an enhanced range of configuration. Also, they are economical in terms of manufacturing. The fact that Chin and India, global leaders in automotive sector are dwelling into ‘plastic’ for modern automotive gear equipment, it indicates the well-off application scope of plastic gears in automotive.
APAC Dominates Global Automotive Gears Market Size with Powerful Array of Automotive OEMs and Burgeoning EVs Sales:
The future of the automotive sector rightfully belongs to its electronic front and any region with substantial uptake of EVs is eventually a volatile market for any automotive equipment including gears. However, EVs are still at nascent stage in some developing economies such as India, where majority of automotive gears market size is dominated by demand from traditional automotive. After an acute analysis of the automotive gear regional markets, APAC is reckoned to be the most lucrative marketplace and had a share of 35.6 % in global market demand in 2018. There is a strong attendance of automotive OEMs in leading APAC countries such as India, China, and Japan. Moreover, the dominance of China is global electric vehicles market extending from cars and buses to heavy commercial vehicles is creating opportunities for automotive gears market demand in APAC. Moreover, with 5 out of top 10 global car manufacturers are situated in APAC, automotive sector of countries such as India, Indonesia, and Malaysia are growing at an impeccable rate with 7.98%, 10.31%, and 12.18% respectively as of 2018. Similarly, China in 2018 sustained it apex spot in global electric car market with sales recorded to be approximately 1.1 million, and with 2.3 million units, it held the largest stock of electric cars. Electric two/three-wheelers on the road surpassed 300 million by the end of 2018.
Government Initiatives in India and China for the adoption of EVs:
Indian Government in 2019 sanctioned to enact the scheme titled ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)’ to enhance the trend and trade of electric mobility. Followed by FAME India1 that was launched in 2015 and allocated with central investments worth $128 million, Phase II observed unprecedented funding worth $1.4 billion in 2019.
Incentives and tax exemption policies are major catalyst in global EVs market, to promote sales. For instance, in 2016, Chinese government provided strong financial and non-financial incentives to EV adoption such as exemptions from acquisition and excise taxes ranged $ 5,000 to $ 8,500.
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Automotive Gears Market Companies:
Some of the market players with majority of the automotive gears market share are Robert Bosch GmbH, GKN plc, Showa Corporation, Bharat Gears Ltd., TRW Automotive Holdings Corp., American Axle & Manufacturing, Inc., Jiangsu Pacific Precision Forging Co. Ltd., Gleason Corporation, and Gear GmbH.
Innovation is paramount in the global automotive gears market to sustain bottom line of companies as the technological demand from automotive manufacturers keeps fluctuating. As a consequence, leading market players are emphasizing on joint ventures with emerging market players to leverage the innovations by the later. For example, in 2017 Eaton Corporation Plc signed a joint venture agreement with Shaanxi Fast Gear to manufacture manual transmissions for light-duty vehicles. The markets targeted by this joint venture are APAC, Africa and Eastern Europe.
From differential and transmission to steering system, automotive gear manufacturers are constantly presenting products to leverage demand from various application areas. Engineering firms such as GKN plc, are driving innovations to enhance the proficiency of transmission systems targeting the vehicle electrification technology. Moreover, players that are innovation-driven such as Tesla are also into the manufacturing of multi-gear transmission systems for their respective arena, precisely for the next-generation vehicles. These efforts have delivered inventiveness to restrict mechanical loss, adopt a broader gear spectrum and, improve shift tracking.
A. Precision Gear Market
B. Automotive Gearbox Market
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