CAGR: 5.1%Current Market Size: USD 25.6 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global Automotive Gear Shift System market is expected to grow from USD 25.6 billion in 2022 to USD 38.1 billion by 2030, at a CAGR of 5.1% during the Projection period 2023-2030. The market for automotive gear shift system is anticipated to be driven by rising automotive demand in both developing and developed nations as well as rising EV production.
In order to change gears in a car, a metal lever is attached to the shift assembly structure. This is known as an automotive gear shift system. Automobiles have two different types of gear changing systems: manual and automated. For a manual gearshift system, the clutch pedal is necessary; however, for an automated or semi-automatic gearshift system, the clutch pedal is not necessary. The market for car gear shift systems is growing as a result of the advantages of precise and quick gear activation. The torque and speed of the vehicle are regulated by an electronically controlled transmission device called the gear shifter. To engage and disengage the gears and alter them in accordance with the driver's needs, the automotive gear shift systems use an electronic system and a lever. This method often comes in manual and sophisticated varieties. In a manual transmission system, changing gears might be a laborious process that the sophisticated transmission system can eliminate. The electrical system may control a solenoid actuator and the clutch to operate the engagement, disengagement, and shifting of gears, while the sophisticated transmission system can detect when the driver is adjusting the gear. The rising usage of x-by-wire technology, in which electromechanical devices are employed to perform activities that are typically performed by mechanical linkages, is a primary driving factor for improved automotive transmission systems. The rising demand for semi-automatic and automatic transmission vehicles, as well as the growth in income levels and the increasing electrification of vehicles, are the primary factors driving the global automotive advanced transmission system market. To encourage the development of electric vehicles, the governments of several nations are enacting stringent pollution rules and undertaking numerous activities. The market for innovative vehicle gear shifters is increasing quickly due to the rising need for comfort while driving.
Sample Request: - Global Automotive Gear Shift System Market
Market Dynamics:
Drivers:
During the Projection period, it is anticipated that a strong demand for automotive gear shift systems would be generated by the expanding automotive industry, mostly as a result of growing demand for passenger automobiles. Additionally, as most manufacturers are focused on producing more fuel- and emission-efficient automobile gear shift systems, vehicle standards established by governments of various areas are also anticipated to generate favourable growth possibilities in the near future. Another important factor generating chances for the global automotive gear shift systems market is the rising popularity of electric vehicles.
Restraints:
The automotive gear shift systems market continues to face a long-standing problem with rising non-ferrous raw material and alloy prices. The primary factor anticipated to lead to a major increase in the price of raw materials is growing regulatory pressure to streamline mining methods in order to significantly reduce the detrimental effects of the technique on the environment. Electric cars will face hurdles from the demand for lightweight and robust alternatives to conventional materials, which will necessitate the adoption of new systems and technologies.
Opportunities:
Automobile manufacturers are now able to increase the fuel efficiency of their vehicles thanks to the development of automatic gear shift transmission systems. The need for automatic transmission systems is predicted to be significantly boosted by compliance with Corporate Average Fuel Economy (CAFÉ) norms as well as growing concerns about environmental degradation brought on by emissions. This is expected to fuel the market growth for automotive gear shift systems. Furthermore, with many automakers committing to investments in this cutting-edge technology, electric cars (EVs) are experiencing steady uptake. Automotive gear shift system makers are anticipated to see considerable opportunities as the EV market expands.
Challenges:
On the other hand, the auto gear shift system market may be constrained by the less dependable character of an advanced shifter. Additionally, the high cost of the raw materials required to make these components could provide a significant barrier to the expansion of the global market for automotive gear shift systems.
Segmentation Analysis:
The global Automotive Gear Shift System market has been segmented based on gear type, vehicle type, sales channel, and region.
By Vehicle Type
The vehicle type segment is a commercial vehicle and passenger vehicle. Commercial vehicle led the largest share of the Automotive Gear Shift System market with a market share of around 65% in 2022. The market for automotive gear shift systems for commercial vehicles is expanding thanks in part to cutting-edge gear shift technology including automatic shifters and wire gear shift systems. On the other hand, automatic shifters are only seen in expensive cars. The mid-size and luxury car markets are expanding, which is helping the light-duty vehicle market grow.
By Sales Channel
The sales channel segment is aftermarket and OEM. The OEM led the largest share of the Automotive Gear Shift System market with a market share of around 60% in 2022. Any business that creates components or goods that are meant to be incorporated into the final goods of other businesses is considered an original equipment manufacturer (OEM), and they frequently collaborate with the value-added reseller who sells the finished goods (VAR).
Global Automotive Gear Shift System Market- Sales Analysis.
The sale of Automotive Gear Shift System market expanded at a CAGR of 4.3% from 2016 to 2022.
Automotive gear shift systems are a form of transmission system where the torque and speed of the vehicle are controlled by gears and gear drives. The two most common types of automotive gear shift systems are manual and automated. Automotive gear shift systems offer superior control, and thus, the ability to correctly operate a vehicle. Two factors that are anticipated to propel the worldwide automotive gear shift systems market in the near future are the expanding automotive sector and government regulations promoting fuel-efficient gear shift systems. Additionally, rising disposable income is boosting consumers' spending power globally and is a major element supporting the healthy expansion of the automobile industry globally, including vehicle gear shift systems.
Electronic gear shift systems were also made possible by technology advancements and inventions in the automotive sector. Electronic components are largely taking the place of the mechanical ones that were formerly utilised in these systems. Additionally, shift-by-wire gear systems are becoming more popular on the market, particularly for electric automobiles. This method eliminates mechanical coupling by providing a smoother transition between gears. As a result, it is anticipated that manual car gear change systems will soon be replaced.
Thus, owing to the aforementioned factors, the global Automotive Gear Shift System market is expected to grow at a CAGR of 5.1% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the Automotive Gear Shift System market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the Automotive Gear Shift System market and held a 35% share of the market revenue in 2022.
Global Automotive Gear Shift System Market- Country Analysis:
Germany's Automotive Gear Shift System market size was valued at USD 0.15 billion in 2022 and is expected to reach USD 0.17 billion by 2030, at a CAGR of 2% from 2023 to 2030. The growing demand for Automotive Gear Shift System from the region is due to the rise in consumption of automotive gear shift system.
China’s Automotive Gear Shift System market size was valued at USD 0.35 billion in 2022 and is expected to reach USD 0.47 billion by 2030, at a CAGR of 4% from 2023 to 2030. Countries like China are the main contributors in this region because of their enormous manufacturing capability and large number of firms. According to the China Association of Automobile Manufacturers (CAAM), China sold 25.76 million vehicles in 2019. In this area, the use of sophisticated gear shift technologies is growing, which supports growth.
India's Automotive Gear Shift System market size was valued at USD 0.26 billion in 2022 and is expected to reach USD 0.32 billion by 2030, at a CAGR of 3% from 2023 to 2030. In order to take advantage of the growing demand for affordable vehicles in India, ZF Friedrichshafen AG, a well-known player in the automotive gear shift system industry, recently announced the creation of a new electrified clutch that enhances the effectiveness of manual transmission in cars.
Key Industry Players Analysis:
To increase their market position in the global Automotive Gear Shift System market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
5.1% |
Market Size |
25.6 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Gear Type, By Vehicle Type, By Sales Channel, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Kongsberg Automotive, ZF Friedrichshafen AG, GHSP, SL Corporation, SILATECH S.r.l., Ficosa Internacional SA, Fujikiko Co., Ltd., Leopold Kostal GmbH & Co. KG, Dura Automotive Systems, TOKAIRIKA, CO, LTD, Ningbo Gaofa Automotive Control System Co., Ltd., Chongqing Kuayue (Group) Co., Ltd., Eissmann Group Automotive, and JOPP GROUP. |
By Gear Type |
|
By Vehicle Type |
|
By Sales Channel |
|
Regional scope |
|
Scope of the Report
Global Automotive Gear Shift System Market By Gear Type:
Global Automotive Gear Shift System Market By Vehicle Type :
Global Automotive Gear Shift System Market By Sales Channel:
Global Automotive Gear Shift System Market By Region:
Global Automotive Gear Shift System market is expected to reach USD 38.1 billion by 2030.
The Automotive Gear Shift System market is projected to have a CAGR of 5.1%.
The market for automotive gear shift system is anticipated to be driven by rising automotive demand in both developing and developed nations as well as rising EV production.
Leading market players active in the global Automotive Gear Shift System market are SL Corporation, GHSP, Inc., S.A., Fuji Kiko Co., Ltd., Jopp Holding GmbH, Leopold Kostal GmbH & Co. KG, Tokai Rika Co., Ltd., Kongsberg Automotive ASA, and Dura Automotive Systems, LLC., Ficosa International among other
Based on the vehicle type, the Automotive Gear Shift System market is segmented into commercial vehicle and passenger vehicle.
Political Factors- Favorable tax regulations make it simple for companies to grow. Government incentives and advantageous tax rates will also help the automotive gear shift system market to grow. Government and political institutions and authorities must keep an eye on industrial rivalry. By doing this, businesses may be sure that their products and business practices are ethical. Additionally, corporate expenses won't be passed on to customers, allowing them to take advantage of attractive and competitive pricing. The automotive gear shift system market will be able to expand thanks to favorable tax laws that support business growth and development, which will contribute to the creation of economic value for the nation.
Economic Factors- A reasonable interest rate will aid businesses in obtaining bank loans, as demonstrated by manufacturers of the automotive gear shift system market. The goal of this business financing is expansion and development. Business loans would also play a significant role in the growth and construction of the sector's infrastructure. People might obtain personal loans with moderate interest rates. Personal loans will result in increased consumer spending and consumption when interest rates are low to moderate. Lower overall disposable income in the economy due to higher unemployment trends would have a direct impact on the profitability of businesses like the automotive gear shift system market.
Social Factors- The population is adopting trends in health and well-being. The movement toward health and wellness has also influenced consumption choices and behaviors. By incorporating health-related features into its products based on consumer research and behavioral evaluations, the automotive gear shift system market has added health-related parts to its marketing and is shaping the process between signing and closing with its acquisition of Automotive. Higher levels of education also indicate that customers are more conscious of their spending and consumption habits. They'll concentrate on encouraging consumption as a result, which will help the automotive gear shift system market.
Technological Factors- The proportion of young people and people in their middle years is higher than average. These demographic groups frequently utilize social media for connectedness. Businesses are increasingly using social media to obtain consumer data and insights, as seen in the automotive gear shift system market. High levels of domestic and foreign investment are made in the nation's technological R&D. The substantial investment aids in the advancement of industries by providing them with modern, flexible, and efficient means of conducting business and carrying out other business procedures. A higher rate of innovation has also been made possible by increasing investment and related research.
Environmental Factors- Recycling and environmental sustainability are receiving more attention. More and more consumers are demanding ways to recycle things before disposing of them. Consumption of recycled goods is also on the rise among consumers. The automotive gear shift system market has developed particular sites for disposing of products that need to be recycled as part of its acquisition of the Automotive gear shift system. In addition to many other players in the automotive gear shift system market is launching a new product line of recycled goods for customers to benefit from with its acquisition.
Legal Factors- Businesses are required by national regulations to create valid employment contracts. These agreements, which cover every aspect of employment, are approved by respected governmental bodies. Employment contracts provide a positive relationship between all parties and prevent miscommunication or collusion. The automotive gear shift system market follows employment rules and informs potential employees of them during the hiring process. Regarding the health and safety of employees at work, there are stringent rules. Respected associations and institutions conduct routine audits of businesses to determine whether safety nets, drills, and other preventative measures are being implemented. The safety and health of employees include not only their physical health but also their emotional and mental health.
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