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Automotive Gear Reducer Market Trends

Report ID: GMI12898 Published Date: December 2024Report Format: PDF
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Automotive Gear Reducer Market Trends

Innovations in transmission systems such as dual-clutch transmissions (DCT) and continuously variable transmissions (CVT) are driving the need for advanced gear reducers. For instance, Tata Motors launched the full Curvv lineup, including EV, petrol, and diesel models. The diesel model offer both a manual transmission and a dual-clutch automatic gearbox. These gear reducers handle higher torque, ensure smooth shifts, and improve vehicle performance. They also help deliver power efficiently and reduce energy losses.

DCT and CVT systems focus on smoother acceleration and better fuel efficiency, making gear reducers essential for achieving these goals. Additionally, these advanced gear systems help meet stricter fuel economy standards, driving the need for more efficient and durable gear reduction systems in both conventional and electric vehicle powertrains.

Automakers are using lightweight materials such as aluminum and carbon fiber to reduce vehicle weight, which improves fuel efficiency and handling. This shift is driving demand for lighter and more compact gear reducers that can still deliver high torque. These gear reducers, made with lighter alloys and compact designs, are especially important for electric and hybrid vehicles, where efficiency and performance are critical. Lighter gear reducers lower the powertrain system's weight, helping extend driving ranges and improve energy efficiency. New materials and designs also ensure these components perform well without losing durability or reliability.

Developing advanced gear reducers for electric and hybrid powertrains requires significant investment in research and development. Smaller automakers or those with limited budgets often struggle to afford the high costs of specialized materials, precision engineering, and advanced manufacturing. This limits their ability to use these technologies, reducing their competitiveness and slowing adoption. High initial costs also slow market penetration, as larger automakers with more resources take the lead, delaying the widespread use of advanced gear reducers.

Author: Preeti Wadhwani, Aishwarya Ambekar
Frequently Asked Question(FAQ) :

What is the size of the Asia Pacific automotive gear reducer industry?+

The Asia Pacific market held over 35% of the global share in 2024, fueled by the rapid growth of the EV market, particularly in China, and the region's strong automotive manufacturing base.

Why is the use of planetary gear reducers increasing?+

The planetary gear reducers segment accounted for approximately 39% of the market share in 2024, owing to their ability to handle high torque while maintaining a compact size, making them ideal for automotive applications.

How big is the automotive gear reducer market?+

The market size of automotive gear reducer reached USD 11.3 billion in 2024 and is set to grow at a 4.2% CAGR from 2025 to 2034, driven by the rising demand for electric vehicles (EVs) globally.

Who are the major players in the automotive gear reducer market?+

Major players in the industry include American Axle & Manufacturing, BorgWarner, Bosch Group, Dana, Eaton, Nidec, Regal Rexnord, SEW Eurodrive, Sumitomo, and Valeo.

Automotive Gear Reducer Market Scope

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