Passenger Car Gear Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 5.83 Billion
CAGR (2026-2031)	5.66%
Fastest Growing Segment	Transmission System
Largest Market	North America
Market Size (2031)	USD 8.11 Billion

Market Overview

The Global Passenger Car Gear Market will grow from USD 5.83 Billion in 2025 to USD 8.11 Billion by 2031 at a 5.66% CAGR. The Global Passenger Car Gear Market comprises mechanical components essential for torque transmission and speed regulation within vehicle drivetrains. The sector is fundamentally driven by recovering global automotive production rates and the heightened requirement for advanced transmission systems that enhance fuel economy. According to the International Organization of Motor Vehicle Manufacturers, in 2024, global motor vehicle production reached 92.5 million units, creating a sustained baseline of demand for transmission assemblies and their constituent gears.

Nevertheless, the industry encounters a significant challenge arising from the electrification of powertrains. Electric vehicles typically employ simpler single-speed reduction gearboxes rather than the multi-speed transmissions found in internal combustion engines, which inherently reduces the volume of gears required per unit. This structural shift forces manufacturers to significantly alter production capabilities to focus on fewer, high-precision components required for noise reduction in electric drive units, posing a financial and operational barrier to continued market expansion.

Key Market Drivers

Rising Global Passenger Vehicle Production and Sales Volumes acts as the primary catalyst for the gear market. As automakers ramp up manufacturing to meet post-pandemic recovery and emerging market demand, the absolute volume of transmission assemblies—and consequently the gears within them—expands proportionately. This volume growth is particularly pronounced in Asian markets, where high production rates sustain a robust order book for transmission component suppliers. According to the China Association of Automobile Manufacturers (CAAM), in January 2025, the country recorded a cumulative automobile production of 31.28 million units for the year 2024, setting a benchmark directly correlating to increased gear procurement.

The Accelerating Adoption of Electric and Hybrid Vehicle Powertrains is fundamentally reshaping gear specifications and value chains. While pure EVs often reduce gear counts, the surge in hybrid vehicles preserves complex multi-speed transmissions, while electric drive units demand high-precision gears to minimize noise, vibration, and harshness at high speeds. This shift forces suppliers to pivot toward higher-value components. According to the International Energy Agency (IEA), in May 2025, global electric car sales were projected to exceed 20 million units for the year, signaling a critical transition in drivetrain requirements. Industry players are capitalizing on this trend; according to Assembly Magazine, in November 2025, Toyota announced a $912 million investment to expand hybrid-electric vehicle assembly and advanced powertrain production capabilities across its United States manufacturing plants.

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Key Market Challenges

The transition toward powertrain electrification represents a structural impediment to the growth of the Global Passenger Car Gear Market. Unlike internal combustion engine vehicles that utilize multi-speed transmissions containing numerous gear sets to manage torque and speed, electric vehicles predominantly operate with single-speed reduction gearboxes. This technological divergence substantially lowers the quantity of gears required per unit, thereby reducing the overall volume of components demanded by original equipment manufacturers. Even as vehicle production recovers, the revenue potential for gear suppliers remains constrained by this decline in content per vehicle.

This reduction in component volume is accelerating in key manufacturing hubs, creating a tangible gap in demand for complex gear assemblies. As the market share of battery-powered vehicles expands, the total addressable market for conventional transmission gears contracts significantly. According to the China Association of Automobile Manufacturers, in 2024, the sales of new energy vehicles exceeded 12 million units. This massive adoption of simplified electric drivetrains in the world's largest automotive market underscores how the shift away from internal combustion engines directly limits the expansion opportunities for traditional gear manufacturers.

Key Market Trends

The Growth of Integrated Electric Axle (e-Axle) Gear Systems represents a fundamental shift in drivetrain architecture, where the electric motor, power electronics, and transmission are combined into a single compact unit to maximize power density and efficiency. This integration demands high-precision, helical gears capable of handling higher input speeds while minimizing package size, forcing suppliers to reconfigure manufacturing lines for these complex 3-in-1 systems. This structural transition is prompting significant capital allocation toward advanced manufacturing capabilities; according to Linamar Corporation, January 2025, in a corporate press release, the company announced an investment program of approximately $1.1 billion to expand its production capacity for next-generation mobility technologies, including specialized eAxle propulsion systems and hybrid propulsion solutions.

Concurrently, the Shift Toward Lightweight Composite and Hybrid Gear Materials is gaining momentum as manufacturers seek to mitigate the noise, vibration, and harshness (NVH) challenges inherent in silent electric vehicle cabins. Replacing traditional metal gears with high-performance engineering thermoplastics, such as PEEK (polyetheretherketone), significantly reduces operational noise and component weight, thereby extending vehicle range and improving passenger comfort. This material evolution is reflected in the performance of key polymer suppliers; according to Victrex plc, January 2025, in the 'Annual Report 2024', the company reported a 5% increase in its automotive division volumes for the fiscal year, a growth trajectory directly attributed to the accelerating adoption of their lightweight polymer solutions in electric mobility platforms.

Segmental Insights

Based on recent industry analysis, the Transmission System segment is recognized as the fastest-growing category within the Global Passenger Car Gear Market. This rapid expansion is primarily driven by the global transition from manual to automatic transmission technologies, such as Dual-Clutch and Continuously Variable Transmissions, which necessitate complex gear arrangements for enhanced driving comfort. Furthermore, stringent regulatory frameworks, including the Corporate Average Fuel Economy standards, compel automotive manufacturers to adopt efficient multi-speed gearboxes to minimize emissions and optimize fuel usage. The increasing production of electric vehicles also accelerates demand for specialized reduction gears essential for modern powertrains.

Regional Insights

North America dominates the Global Passenger Car Gear Market, sustained by substantial vehicle production and a deeply rooted consumer preference for automatic transmission systems. This demand is amplified by the popularity of larger vehicles, such as SUVs, which utilize complex multi-speed gearing to balance performance with economy. Additionally, rigorous Corporate Average Fuel Economy (CAFE) standards, administered by the National Highway Traffic Safety Administration (NHTSA), mandate higher efficiency across vehicle fleets. Consequently, manufacturers prioritize the development of advanced transmission gears to reduce fuel consumption, cementing the region's status as the primary driver of market activity.

Recent Developments

In November 2024, Magna International announced that it had received its first high-volume commercial award for the Dedicated Hybrid Drive (DHD) Duo system from a leading Chinese original equipment manufacturer. This advanced longitudinal front-drive solution featured a dual electric motor and a multi-speed gearbox design, specifically engineered to deliver smooth performance and high efficiency for passenger vehicles. The 800-volt system was developed to support various vehicle segments, including SUVs and light trucks, providing a flexible architecture for hybrid electrification. This product launch demonstrated the company's continued innovation in complex gear and drive systems, offering automakers a scalable solution to meet stringent emissions and performance targets.
In October 2024, Schaeffler AG successfully completed its merger with Vitesco Technologies Group AG, establishing a consolidated global leader in motion technology. This strategic combination significantly strengthened the company's capabilities in the passenger car powertrain market, specifically enhancing its portfolio of transmission systems and electrified drive solutions. The newly formed entity was structured into four specialized divisions, including Powertrain & Chassis and E-Mobility, to better address the industry's shift towards electrification. The merger allowed the company to integrate complementary technologies, such as gears, shafts, and housing components with advanced power electronics and software, thereby offering comprehensive system solutions to global automakers.
In July 2024, BorgWarner secured significant business contracts to supply its electric cross differential (eXD) to three major global automotive manufacturers. The company announced that these agreements covered applications for high-performance sedans and hatchbacks, utilizing the technology to enhance vehicle stability and dynamic traction. The electric cross differential, which functions as an intelligent torque management system within the driveline, was designed to improve handling by modulating torque distribution across the axle. This development highlighted the company's expanding role in the electric vehicle gear and drivetrain sector, with production for one of the contracts commencing immediately and others scheduled for 2026.
In March 2024, Aisin Corporation reached a basic agreement with Subaru Corporation to jointly develop and produce eAxles for use in future battery electric vehicles. This collaboration aimed to combine Subaru’s vehicle development expertise with Aisin’s technological capabilities in transmission and eAxle manufacturing. The partnership focused on creating a highly efficient integrated unit comprising a gearbox, a motor, and an inverter, designed to enhance the performance and range of electric passenger cars. The jointly developed eAxles were intended for installation in battery electric vehicles scheduled for production at Subaru's new manufacturing facility starting in the late 2020s.

Key Market Players

American Axle & Manufacturing Inc.
BorgWarner Inc.
Bharat Gears Ltd
The Timken Company
Dynamatic Technologies Limited
Franz Morat Holding GmbH & Co. KG
GKN Automotive Limited
Gleason Corporation
IMS Gear SE & Co. KGaA
ZF Friedrichshafen AG

By Position	By Material	By Application	By Region
Skew Shaft Gears Intersecting Shaft Gears Parallel Shaft Gears	Ferrous Metals Non-ferrous Metals Others	Steering Systems Transmission Systems Differential Systems	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Passenger Car Gear Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Passenger Car Gear Market, By Position:

Skew Shaft Gears
Intersecting Shaft Gears
Parallel Shaft Gears

Passenger Car Gear Market, By Material:

Ferrous Metals
Non-ferrous Metals
Others

Passenger Car Gear Market, By Application:

Steering Systems
Transmission Systems
Differential Systems

Passenger Car Gear Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Passenger Car Gear Market.

Available Customizations:

Global Passenger Car Gear Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Passenger Car Gear Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Passenger Car Gear Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Position (Skew Shaft Gears, Intersecting Shaft Gears, Parallel Shaft Gears)

5.2.2. By Material (Ferrous Metals, Non-ferrous Metals, Others)

5.2.3. By Application (Steering Systems, Transmission Systems, Differential Systems)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Passenger Car Gear Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Position

6.2.2. By Material

6.2.3. By Application

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Passenger Car Gear Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Position

6.3.1.2.2. By Material

6.3.1.2.3. By Application

6.3.2. Canada Passenger Car Gear Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Position

6.3.2.2.2. By Material

6.3.2.2.3. By Application

6.3.3. Mexico Passenger Car Gear Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Position

6.3.3.2.2. By Material

6.3.3.2.3. By Application

7. Europe Passenger Car Gear Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Position

7.2.2. By Material

7.2.3. By Application

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Passenger Car Gear Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Position

7.3.1.2.2. By Material

7.3.1.2.3. By Application

7.3.2. France Passenger Car Gear Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Position

7.3.2.2.2. By Material

7.3.2.2.3. By Application

7.3.3. United Kingdom Passenger Car Gear Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Position

7.3.3.2.2. By Material

7.3.3.2.3. By Application

7.3.4. Italy Passenger Car Gear Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Position

7.3.4.2.2. By Material

7.3.4.2.3. By Application

7.3.5. Spain Passenger Car Gear Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Position

7.3.5.2.2. By Material

7.3.5.2.3. By Application

8. Asia Pacific Passenger Car Gear Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Position

8.2.2. By Material

8.2.3. By Application

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Passenger Car Gear Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Position

8.3.1.2.2. By Material

8.3.1.2.3. By Application

8.3.2. India Passenger Car Gear Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Position

8.3.2.2.2. By Material

8.3.2.2.3. By Application

8.3.3. Japan Passenger Car Gear Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Position

8.3.3.2.2. By Material

8.3.3.2.3. By Application

8.3.4. South Korea Passenger Car Gear Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Position

8.3.4.2.2. By Material

8.3.4.2.3. By Application

8.3.5. Australia Passenger Car Gear Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Position

8.3.5.2.2. By Material

8.3.5.2.3. By Application

9. Middle East & Africa Passenger Car Gear Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Position

9.2.2. By Material

9.2.3. By Application

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Passenger Car Gear Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Position

9.3.1.2.2. By Material

9.3.1.2.3. By Application

9.3.2. UAE Passenger Car Gear Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Position

9.3.2.2.2. By Material

9.3.2.2.3. By Application

9.3.3. South Africa Passenger Car Gear Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Position

9.3.3.2.2. By Material

9.3.3.2.3. By Application

10. South America Passenger Car Gear Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Position

10.2.2. By Material

10.2.3. By Application

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Passenger Car Gear Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Position

10.3.1.2.2. By Material

10.3.1.2.3. By Application

10.3.2. Colombia Passenger Car Gear Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Position

10.3.2.2.2. By Material

10.3.2.2.3. By Application

10.3.3. Argentina Passenger Car Gear Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Position

10.3.3.2.2. By Material

10.3.3.2.3. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Passenger Car Gear Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. American Axle & Manufacturing Inc.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. BorgWarner Inc.

15.3. Bharat Gears Ltd

15.4. The Timken Company

15.5. Dynamatic Technologies Limited

15.6. Franz Morat Holding GmbH & Co. KG

15.7. GKN Automotive Limited

15.8. Gleason Corporation

15.9. IMS Gear SE & Co. KGaA

15.10. ZF Friedrichshafen AG

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Passenger Car Gear Market in 2025?

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