Automotive Gear Reducer Market Size

The global automotive gear reducer market size was valued at USD 11.3 billion in 2024 and is estimated to register a CAGR of 4.2% between 2025 and 2034. The growth of the market can be attributed to the growing electric vehicle (EV) market. According to Statista, EVs amounted to over 15% of global passenger car sales in 2023, witnessing a rise of around 2.5% as compared to 2022.

As electric vehicle EV production grows, the need for high-performance gear reducers in powertrains is increasing. These gear reducers help transfer power efficiently from the motor to the wheels. With more people using EVs worldwide, these components are essential for better efficiency, less noise, and longer vehicle range. This trend is expected to drive strong growth in the automotive gear reducer industry during the forecast period.

The automotive industry is focusing more on reducing noise, vibration, and harshness (NVH) levels due to customer demand for comfort and regulatory requirements. In July 2023, Qatar's Ministry of Commerce and Industry (MoCI) issued a directive requiring vehicle dealerships and maintenance providers to comply with noise emission standards set by the Qatar General Organization for Standards and Metrology.

The standards include Gulf Standard for Cars – Noise Pollution (GSO1624/2002) and Gulf Standard for Motorcycles – Noise Pollution (GSO ECE 41-1:2007). Vehicles must meet decibel limits during testing, regardless of fuel type, as exceeding these limits violates the Consumer Protection Law (Law No. 8 of 2008), leading to penalties such as fines, imprisonment for up to two years, or administrative closure for up to three months.

Gear reducers, such as helical and planetary types, are key to lowering vibrations and improving vehicle smoothness. This is especially important in EVs, where the absence of engine noise makes other sounds more noticeable. These gear reducers ensure quieter and more efficient drivetrains, providing a smoother and quieter ride. Automakers are also using advanced gear designs and materials to improve NVH performance, which is driving the demand for these high-precision components.