Automotive Pinion Gear Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Automotive Pinion Gear Market Size

Automotive Pinion Gear Market Trends & Drivers

Advancements in Gear Materials and Design

• The continued advancements in the materials and design technologies used in the manufacturing of pinion gears are the biggest market trend in present times. Most prominently, the auto parts industry is currently using CATIA software for designing and manufacturing these systems.
• The computer-aided analysis (CAE) of pinion gear clevis joint and casing is done to make sure they are rigid and safe.
• Advanced polymers and carbon-fiber-reinforced materials are gaining popularity among the players for their high strength-to-weight ratio and versatility.
• Automotive pinion gears play a crucial role in transmission systems, which is why redesigning the gearbox and its components leads to reduced carbon emissions, enhanced fuel-efficiency, and improved operational capabilities.

Rise in Demand for and Production of Automobiles Strongly Drive Market

• Due to the significant population growth, the transition of the lower middle class to the upper middle class, economic growth around the world, and high disposable income, the desire for vehicle ownership has risen. This, in turn, contributed to an increase in the demand for cars, with over 92.7 million units selling in 2023, as per OICA.
• With technological advancements, improved acceleration and smoother gear shifting have contributed to an overall better driving experience. For this, pinion gears are important, which is why the demand for them is growing in tandem with the increasing production of automobiles.
• As per the National Automobile Dealers Association, in the U.S., around 15.5 million light-duty vehicles were sold in 2023; therefore, it remains a lucrative regional market for companies offering pinion gears.
• Mexico is emerging as a new manufacturing hub for the automobile industry, producing 3.5 million vehicles annually, as per the U.S. International Trade Administration.
• As per the International Organization of Motor Vehicle Manufacturers, in 2022, 3.6 million automobiles were produced in Germany, achieving a growth of 11% from 2021.

Electric Vehicles are a Severe Threat for Market Growth

• Due to the stringent pollution norms, the industry is shifting to electric vehicles. Since they do not use separate gears for forward and reverse motion. The motor simply spins in both the directions as per requirement.
• EVs are a significant threat as they use fewer pinion gears for the same automobile design and are, therefore, set to restrain the market growth.
• After the Paris Agreement 2015, countries are moving toward net-zero emissions and taking necessary measures for it. A host of subsidies, incentives, and other kinds of policies have been implemented for EV buyers and manufacturers, which will restrain the growth of the automotive pinion gear market in the coming years.

Automotive Pinion Gear Industry Outlook

Gear Type Insights

• The helical bifurcation held the larger share, of around 70%, in 2023, as well as it is the faster growing category, at a CAGR of 4.3%, during 2024–2030. Due to the high speeds at which modern vehicles travel, the ability to transfer significant amounts of power, while achieving a reduction in noise, makes helical variants a popular choice among automobile manufacturers.
• Their increasing use in SUVs, four-wheel-drive vehicles, and military vehicles is boosting the demand for these variants. SUVs are a popular choice among car enthusiasts for their off-road capabilities.
• Automotive pinion gears provide better steering control and faster deceleration and acceleration, thus enhancing safety.

The segment has the following bifurcations:

• Bevel
• Helical (Larger and Faster-Growing Category)

Vehicle Type Insights

• Passenger vehicles are the larger category, holding a share of around 75% in 2023. Cars are being incorporated with premium and upgraded features, such as ADAS and cruise, which is making them even more popular than before. With economic growth in developing countries, the purchasing power of people has increased. Thus, more cars are being sold, driving the passenger vehicles category in the market.
• Commercial vehicles are the fastest-growing category, growing at a CAGR of 4.5% during 2024–2030. As governments have implemented stringent policies regarding pollution norms, many old commercial vehicles are now being replaced with newer ones.
• Commercial vehicles are usually purchased in bulk for passenger and freight transportation by the owing entity, thus bringing about a rapid increase in their sale.

The report covers the following vehicle types:

• Passenger Vehicles (Larger Category)
• Commercial Vehicles (Faster-Growing Category)

Material Insights

• Cast iron is the largest category, holding a share of 30% in 2023, as well as the fastest-growing category. Cast iron has excellent corrosion resistance and thermal stability, and it is not much expensive.
• The ease of availability of cast iron, along with its excellent material properties, drives its popularity among pinon gear manufacturers.

The following materials have been covered in the report:

• Steel
• Aluminum
• Brass
• Cast Iron (Largest and Fastest-Growing Category)
• Ductile Iron
• Powdered metal
• Plastic
• Bronze

Application Insights

• Steering system is the largest category, holding a share of 45% in 2023. The steering system changes the axial motion of the steering to the linear motion required to turn the wheels. Since the steering is central to every four-wheeler, the demand for pinion gears for it continues to rise.
• A differential pinion gear is majorly used in rear-wheel drive vehicles, where a ring gear is moved by a pinion gear. These variants are also deployed in vehicles that require exceptional cornering abilities as it allows the wheels to rotate at different speeds.

The key applications of automotive pinion gears are as follows:

• Steering (Largest and Fastest-Growing Category)
• Transmission
• Differential

Sales Channel Insights

• Original equipment manufacturer (OEM) held the larger share in 2023, and they are also expected to have the higher CAGR, of 4.7%, during the forecast period. Pinion gears are a critical component of automobile, and therefore, they require technical expertise to be perfectly installed.
• The increasing purchase of new commercial and passenger vehicles drives OEMs to augment their production, which is why they buy different vehicle components in significant numbers.

The categories of this segment are:

• OEM (Largest and Fastest-Growing Category)
• Aftermarket

Regional Insights

• Asia-Pacific held the largest global market share, of around 50%, in 2023. In the past two decades, there has been a global shift of automobile manufacturers to the region, due to the easy and cheap availability of technical labor. Hence, automobile production in the region fulfills not only regional demand but global demand as well.
• Passenger cars and light commercial vehicles are in high demand here; thus, manufacturers are investing in research and development to achieve better vehicle performance, while reducing the carbon footprint of vehicles.
• Asia-Pacific is also the fastest-growing region, with an expected CAGR of 4.6% during 2024–2030. There are a large number of vehicle manufacturing facilities in China, India, and Japan. The rapid urbanization and increase in purchasing power led to an increase in the sales of cars, which ultimately boosts the growth of the automotive pinion gear market here.

The regions and countries analyzed for this report include:

• North America (Largest Regional market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • U.K.
  • Germany (Largest and Fastest Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Automotive Pinion Gear Market Share

The automotive pinion market has a high degree of competitiveness on account of the presence of both global as well as local market players. The industry witnesses’ collaborations, mergers, and acquisitions regularly. In particular, the key market players collaborate with automobile manufacturers to develop advanced pinion gears with durable materials.

Automotive Pinion Gear Industry News

• In February 2022, MidOcean Partners acquired Cloyes, a developer, designer, manufacturer, and distributor of timing drive systems and engine components. This acquisition was aimed to accelerate the former’s growth and presence in the aftermarket sector.
• In November 2023, Kia Corporation and Hyundai Motor Company launched the Uni Wheel universal wheel drive system. This integrated-wheel drive system improves functionality and offers more space in electric vehicles. The pinion gear in the mechanism enables multi-axis movement and better suspension.
• In April 2023, Modern Automotives exported differential pinion shafts to BMW AG for electric vehicle powertrains. This move was aimed at increasing the share of exports in its revenue from 5% to 25% by 2025.
• In 2021, a Swiss company Humbel developed and designed prototypes for some specific components, such as internal ring gears for e-axles and e-gears in e-vehicles.
• In March 2019, Dana Incorporated acquired the drive systems division of Oerlikon Group. It resulted in the expansion of Dana’s product portfolio.