Automotive Spur Gear Market Report 2026

The automotive spur gear market size has grown steadily in recent years. It will grow from $33.36 billion in 2025 to $35.02 billion in 2026 at a compound annual growth rate (CAGR) of 5%. The growth in the historic period can be attributed to automotive transmission demand, mass vehicle production, adoption of steel gears, drivetrain standardization, mechanical power transmission needs.

The automotive spur gear market size is expected to see strong growth in the next few years. It will grow to $42.78 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to electric drivetrain growth, lightweight vehicle design demand, advanced gear machining, noise reduction requirements, expansion of automotive aftermarket. Major trends in the forecast period include precision manufacturing of spur gears, demand for lightweight gear materials, expansion of aftermarket replacement, growth of ev-compatible gear systems, focus on noise reduction.

The increasing sales of electric vehicles (EVs) are projected to drive the growth of the automotive spur gear market in the future. Electric vehicles are cars powered by electricity stored in rechargeable batteries or generated on board using hydrogen fuel cells. Automotive spur gears are essential for optimizing power transmission, enhancing efficiency, and ensuring precise control over speed and torque, all of which contribute to the success of electric vehicles within the sustainable transportation sector. For example, in July 2023, the International Energy Agency, a France-based intergovernmental organization, reported that sales of electric vehicles reached 10 million in 2022, with an expected increase to 14 million in 2023. Thus, the rising demand for electric vehicles is driving the automotive spur gear market.

The increasing demand for fuel efficiency is expected to drive the growth of the automotive spur gear market going forward. Fuel efficiency refers to how effectively a vehicle uses fuel to travel a certain distance, reflecting its ability to maximize energy output while minimizing fuel consumption. Automotive spur gears contribute to improved fuel efficiency by reducing energy losses and enabling more efficient power transmission within the vehicle. For instance, in January 2024, according to the U.S. Department of Energy, a U.S.-based government agency, plug-in electric vehicles accounted for 9.8% of all light-duty vehicle sales in December 2023, up from 7.8% in December 2022. Throughout 2023, plug-in vehicles consistently represented at least 8% of monthly sales, compared with a range of 5.5% to 7.8% in 2022. Therefore, the growing emphasis on fuel efficiency is driving the automotive spur gear market.

Major players in the automotive spur gear market are focusing on innovation by developing automatic gear shift variants to meet customer demands. The automatic gear system, exemplified by Suzuki Motor Corporation's New S-Presso AGS launched in May 2023, allows manual gearboxes to perform automated gear changes without the need for driver intervention. This enhances convenience, performance, and efficiency, complementing the vehicle's design and elegance. Suzuki's AGS variant features a new 1.0L K10C engine and an engine auto stop-start system (EASS) for fuel efficiency, providing a pleasurable ride while saving money.

Major companies operating in the automotive spur gear market report include ZF Friedrichshafen AG, Eaton Corporation Plc, Sumitomo Heavy Industries Ltd., Linamar Corporation, American Axle & Manufacturing Inc., GKN Sinter Metals Engineering GmbH, Univance Corporation, Bharat Gears Limited, Mahindra Gears & Transmissions Pvt Ltd, Oerlikon Graziano SpA, Showa Corporation, KHK Gears Co Ltd., Samgong Gear Co. Ltd., DESCH Antriebstechnik GmbH & Co. KG, Precision Gears Inc., Cleveland Gear Company, Neugart GmbH, Renold Plc, Wittenstein Group, BMT International SA.

Asia-Pacific was the largest region in the automotive spur gear market in 2025. The regions covered in the automotive spur gear market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive spur gear market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive spur gear market consists of sales of straight-cut spur gears, starter motor gears, and carbon steel gears. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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