Automotive Planetary Gear Market Growth Drivers, Challenges and Opportunities

Automotive Planetary Gear Systems Market Size, Share and Growth Analysis

The automotive planetary gear market is forecasted to expand from USD 5.05 billion in 2025 to USD 8.20 billion by 2034, growing at a CAGR of 5.54% from 2025 to 2034.

Unlock Infinite Advantages: Subscribe to Annual Membership

Introduction

The automotive planetary gear market is a crucial sector of the automotive components industry. This industry deals in manufacturing and distribution of planetary gear systems for the automotive sector. There are various products developed in this sector consists of helical gear, spur gear, bevel gear and some others. These gears are manufactured using several materials including steel, aluminum, composite and some others. It finds application in numerous types of vehicles comprising of passenger vehicles, commercial vehicles, electric vehicles and some others. The growing demand for passenger cars in different parts of the world has boosted the market expansion. This market is expected to grow significantly with the rise of the EV sector across the globe.

• According to the Malaysian Automotive Association, around 480971 passenger vehicles were sold in Malaysia during 2020 that increased to 719160 in 2023.

Highlights of the Automotive Planetary Gear Market

• Asia Pacific held the largest share of the automotive planetary gear market.
• North America is expected to grow with a significant CAGR during the forecast period.
• By product type, the helical gears segment led the industry.
• By product type, the spur gear segment held significant share of the market.
• By application, the passenger vehicles segment held a dominant share of the market.
• By application, the electric vehicles segment is projected to rise with a significant CAGR during the forecast period.
• By material, the steel segment held the largest portion of the industry.
• By material, the aluminum segment is likely to rise with the fastest growth rate during the forecast period.

Key Metrics and Overview

Automotive Planetary Gear: Stats and Figures

• According to the Malaysian Automotive Association, around 80571 commercial vehicles were sold in Malaysia in 2023.
• According to the International Energy Agency, around 3.4 million EVs were sold in Europe in 2024.
• According to the U.S. Energy Information Administration, Tesla sold around 48.9% EVs in the U.S. during the 2nd quarter of 2024.
• According to the Bureau of Transportation Statistics, around 1609035 hybrid vehicles were sold in the U.S. during 2024.

Product Type Insights

The helical gears segment led the industry. The rising demand for smooth gear shifts in passenger vehicles has boosted the market expansion. Also, the growing adoption of helical gears in sports car for maneuvering in high-speeds efficiently is crucial for the industrial growth. Moreover, the increasing use of helical gears in automotive due to various benefits such as higher efficiency, reduced noise, versatility, durability and some others is expected to propel the growth of the automotive planetary gear market.

The spur gear segment held significant share of the automotive planetary gear market. The growing use of these gear systems in heavy commercial vehicles has driven the market growth. Additionally, the rising application of spur gears in hybrid and electric vehicles has played a positive role in shaping the industrial landscape. Moreover, several advantages of these gear systems including high power transmission efficiency, easy installation, compact design and some others boosts the market expansion.

Application Insights

The passenger vehicles segment held a dominant share of the market. The rising sales and production of passenger vehicles has increased the demand for planetary gear system, thereby fostering the market growth. Also, the growing use of helical gears in high-speed vehicles along with technological advancements in automotive sector has boosted the market expansion. Moreover, the increasing investment by automotive companies for developing powerful SUVs is driving the growth of the automotive planetary gear market.

The electric vehicles segment is projected to rise with a significant CAGR during the forecast period. The growing prices of gasoline and diesel across the world has boosted the market growth. Also, several government initiatives aimed at lowering C02 emission in the environment coupled with rapid investment by startup companies for manufacturing transmission systems for EVs is positively impacting the market expansion. Moreover, several automotive brands such as Tesla, BYD, Tata Motors, BMW, Audi and some others are launching new EVs that in turn propels the growth of the automotive planetary gear market.

Material Insights

The steel segment held the largest portion of the industry. The growing use of steel for manufacturing automotive components has driven the market expansion. Also, the rising government initiatives aimed at developing the steel industry coupled with numerous partnerships among steel manufacturers and automotive brands has played a significant role in shaping the industrial landscape. Moreover, the rapid adoption of steel in gear manufacturing due to its durability and strength is driving the growth of the automotive planetary gear market.

The aluminum segment is likely to rise with the fastest growth rate during the forecast period. The growing demand for fuel-efficient vehicles has boosted the market growth. Also, the rising use of aluminum for manufacturing automotive gears along with technological advancements in material science sector is crucial for the industrial expansion. Moreover, numerous government initiatives aimed at using sustainable materials in automotive sector coupled with the increasing emphasis of automotive companies in reducing vehicle weight drives the growth of the automotive planetary gear market.

Geographical Insights

Asia Pacific held the largest share of the automotive planetary gear market. The growing sales and production of automotives has boosted the market growth. Also, the availability of raw materials along with presence of skilled labors is further accelerating the industrial expansion. Moreover, the presence of several automotive brands coupled with technological advancements in automotive sector is projected to foster the growth of the automotive planetary gear market in this region.

• According to the OICA, around 26123757 passenger vehicles and 4037209 commercial vehicles were manufactured in China during 2023. 

In Asia Pacific, China dominated the market. The rising demand for passenger vehicles along with rapid investment by government for developing the automotive sector has boosted the market expansion. Additionally, rise in number of new market players engaged in automotive components as well as availability of aluminum and steel is driving the market growth in this nation. 

India held a considerable share of the industry. The market is generally driven by the rising demand for SUVs along with rapid integration of automation solutions in automotive sector. Moreover, the presence of several automotive planetary gear brands such as Santram Engineers, Elecon, Universal Gears and some others has fostered the industrial growth in this country.  

Japan and South Korea also held considerable share of the market. The market is generally driven by the rising demand for autonomous vehicles along with adoption of advanced technologies in automotive sector. Moreover, the presence of several automotive brands such as Hyundai, Toyota, Mitsubishi and some others is likely to propel the market expansion. 

North America is expected to grow with a significant CAGR during the forecast period. The rising development in the automotive sector has driven the market growth. Also, numerous government initiatives aimed at strengthening the EV infrastructure coupled with presence of various automotive giants has boosted the market expansion.

In North America, U.S. is the major contributor of this industry. The growing demand for electric vehicles along with rapid government investment in metal industry has propelled the market expansion. Also, the presence of several automotive component brands such as BorgWarner Inc., Eaton Corporation plc, American Axle & Manufacturing, Inc. and some others has boosted the industrial growth.

• In January 2024, BorgWarner launched a new series of EV components. These components include drive modules, eMotors, inverters, and battery systems.

Canada held a notable share of the market in this region. The rising consumer preference towards luxury vehicles along with availability of crude steel has boosted the market growth. Additionally, the increase in number of automotive startups coupled with the growing demand for DCT gearboxes is crucial for the industrial expansion.

• In November 2024, Lexus launched IS sedan in Canada. IS sedan is a luxury vehicle that comes with an advanced 5.0L V8 engine that can provide a power of around 472 hp and generates a torque of around 394 lb-ft.

Industry Leader Announcement

In June 2024, Harsha Kadam, the Managing Director of Schaeffler India made an announcement stating that, “The launch of PGS represents a remarkable achievement for Schaeffler India. This innovation not only strengthens our commitment to the ‘Make in India’ initiative but also underscores our dedication to delivering superior motion technology solutions that meet the evolving needs of the automotive industry. Schaeffler’s global innovation, quality and technology enables us to bring this PSG systems made in India closer us to our OEM partners.”

Competitive Landscape

The automotive planetary gear market is a highly fragmented industry with the presence of several dominating players. Some of the prominent companies in this industry consists of JTEKT Corporation, Valeo SA, Hyundai Transys, ZF Friedrichshafen AG, BorgWarner Inc., Aisin Seiki Co., Ltd., Continental AG, Magna International Inc., Eaton Corporation plc, Schaeffler Group, Dana Incorporated, GKN Automotive Limited, American Axle & Manufacturing, Inc., Meritor, Inc., and some others. These companies are constantly engaged in developing planetary gear systems for the automotive sector and adopting numerous strategies such as business expansion, acquisition, product launches, collaboration, and some others to maintain their dominant position in this industry. For instance, in June 2024, Schaffler launched planetary gear system (PGS) in India. This gear system is designed for enhancing gear shifts in hybrid vehicles.

Recent Developments

• In December 2024, Stellantis announced to launch a three-speed gearbox. This gearbox is designed for hybrid and electric vehicles.
• In September 2024, Apex Dynamics launched a new range of planetary gearboxes. These gearboxes are designed for providing high torque density and efficient power transmission.
• In December 2023, Bonfiglioli Transmissions Pvt Ltd announced to invest around Rs 100 crores. This investment is done for developing a gear manufacturing plant in Pune, India.

Automotive Planetary Gear Market Segmentations

By Product Type

• Helical Gear
• Spur Gear
• Bevel Gear
• Others

By Application

• Passenger Vehicles
• Commercial Vehicles
• Electric Vehicles

By Material

• Steel
• Aluminum
• Composite
• Others

By Distribution Channel

• OEMs
• Aftermarket

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa