|Market Size in 2022
|Market Forecast in 2030
|CAGR (in %)
|USD 12.04 Billion
|USD 15.48 Billion
Automotive Gear Shifter Market
The global automotive gear shifter market size was worth around USD 12.04 billion in 2022 and is predicted to grow to around USD 15.48 billion by 2030 with a compound annual growth rate (CAGR) of roughly 3.22% between 2023 and 2030.
An automotive gear shifter is formally known as a transmission lever. It is a metal-based lever attached to the transmission section of an automobile. The gearbox is another name for transmission and utilizes gear functions to change the rotation direction or the speed of a machine, in this case, an automotive vehicle. In traditional vehicles, gear shifters are used in conjunction with the clutch pedal since only after pressing the clutch unit, the gear should be shifted to the desired level. When used in manual transmission, gear shifters typically refer to shift levers. However, when used in an automatic transmission, a similar type of lever is placed and is known as a gear selector. Gear shifters are generally found on the front side of the vehicle near the driver’s side of the transmission tunnel. Other locations of automotive gear controllers are on the center console or the floor depending on the vehicle model. Automatic and manual vehicles have different gear shifter technologies since the manual system works in sync with clutch handling; this attribute does not apply to automatic cars since they do not have a driver-operated clutch system. The industry for automotive gear shifters is growing at a steady pace and is expected to come across a few challenges during the forecast period.
Increasing research and innovation in gear shifter technology to drive market growth
The global automotive gear shifter market is expected to grow as a result of increasing research and innovation in gear shifter technology. Automotive companies are working toward deploying safe vehicles to meet the changing consumer expectations and demand. Automobile manufacturers are not only trying to improve user experience by providing easy-to-use and swift gear shifters but also working on enhancing fuel efficiency and space optimization along with reduced complexity in terms of mechanical structure. For instance, after Volvo successfully launched B7R 4X2 buses in India, the company introduced its breakthrough I-Shift technology on its multi-axle coach. The new system is capable of mimicking the role of best drivers. It not only improves the bus driver’s working environment but also focuses on passenger safety and comfort. I-Shift is a 12-speed manual gearbox equipped with an automated gear-changing system thus significantly impacting vehicle performance, fuel efficiency, and vehicle reliability. In July 2023, IC Bus launched the next generation of its CE Series school bus. The new automobile vehicle boasts of enhanced safety features along with improved total cost of ownership. Among other features, the most prominent is the improved ergonomics that allows shifting gear with the use of pull and push motion.
Increasing demand for electric vehicles to restrict market growth
The global automotive gear shifter market growth is likely to be restricted owing to the increasing demand for electric vehicles (EVs). Unlike traditional manual-gear vehicles, EVs do not use mechanical gear shifters. EVs are built to be user-friendly with a limited number of complex mechanical systems. These vehicles generally consist of a single-gear system and the drivers can choose from three options with each one facilitating either driving, parking, or moving in reverse. All of this can be achieved with just a push of a button or by selecting an option in the EV software system. The increasing number of EV manufacturers and slow but steady shift toward EVs across public and private sector domains are likely to impact the demand for manual gift shifters in the coming years. By 2030, the EV sector is projected to grow at a CAGR of more than 20% while the internal combustion engine market may be limited to only 10%.
Growing market for used cars to create growth opportunities
The automotive gear shifter industry players can expect higher growth opportunities owing to the increasing sales recorded in the used or refurbished car segment. With the increasing launch of new vehicles, more people are frequently buying new cars and selling used ones. These vehicles are available at reduced pricing without compromising on vehicle performance. As of 2021, the value of India’s used car market was around USD 24 million and by 2030 it is projected to reach USD 1 billion. Some of the market propelling factors include an increasing number of service providers that help in refurbishing used cars like new models by changing necessary mechanisms for improved performance.
Rising market segment of sports cars holds high growth potential
Sports cars typically consist of manual transmission since it helps drivers drive through sharp turns without losing too much speed. It is one of the main attributes of a sports car. In modern versions, the vehicles are equipped with dual-clutch automatic transmission. It is a fast-growing segment with tremendous future potential. As of 2023, the global sports car market is around USD 65 billion.
Raw material supply and other variations to challenge market growth
The automotive gear shifter industry growth is expected to be challenged by the uncertainties associated with the supply of raw materials used in the production of automotive gear shifts. Additionally, the automobile sector is evolving in terms of international trade relationships, collaboration, and partnerships. These factors are expected to challenge the industry growth since they are highly unpredictable. The rising preference toward automatic vehicles that run on single-gear systems could lead to a dipped demand for complex and conventional gear shifters.
The global automotive gear shifter market is segmented based on component type, vehicle type, and region.
Based on component type, the global market segments are solenoid actuator, CAN module, and electronic control unit (ECU). In 2022, the highest demand was observed in the solenoid actuator segment since it forms an essential part of the gear shifter mechanism in modern automobiles. They are widely used in vehicles powered by automated manual transmission (AMT). Solenoid actuators perform the actual or physical task of shifting gear when the change is made from the driver’s end. The increasing demand for AMT vehicles is projected to help the segment grow further. In 220, the AMT market was valued at USD 17 billion.
Based on vehicle type, the global market divisions are commercial vehicles and passenger vehicles.
Based on technology type, the automotive gear shifter industry is divided into automatic shifter and shift-by-wire. In 2022, the automatic shifter segment registered the highest growth however during the forecast period, shift-by-wire technology may take the lead. Automatic shifters are used in manual transmission cars with the drivers having the option to select several driving modes. Shift-by-wire on the hand are the new-age solution to complex gear-shifting mechanism since it leverages the advantages of electronic signals to change between driving modes. They are widely used in EVs and luxury cars. Tesla Inc. sold over 480,000 cars in 2022 in the US alone.
|Automotive Gear Shifter Market
|Market Size in 2022
|USD 12.04 Billion
|Market Forecast in 2030
|USD 15.48 Billion
|CAGR of 3.22
|Number of Pages
|Key Companies Covered
|Ficosa International, ZF Friedrichshafen AG, GHSP (Grand Haven Stamped Products), BorgWarner Inc., Stoneridge Inc., Eaton Corporation, Kongsberg Automotive, Xianfei Group, DURA Automotive Systems, Orscheln Products, Kostal Group, Atsumitec Co. Ltd., Fuji Kiko Co. Ltd., Marmon-Herrington, KUS (Kunshan), and others.
|By Component Type, By Vehicle Type, By Technology Type, and By Region
|North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)
|2017 to 2021
|2023 - 2030
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Asia-Pacific to witness the highest growth rate in the coming years
The global automotive gear shifter market is expected to be dominated by Asia-Pacific during the forecast period. The growth is a result of the increasing number of manufacturers and suppliers of gear shifter technology in Asian countries. These regions have an extensive array of production lines while being equipped with essential resources including manpower to undertake large-scale gear shifter production projects. China, India, and Japan produce automotive gear shifter technology and while domestic consumption remains high they continue to contribute to the international market. For instance, China is the world’s largest producer of automobiles. In 2021, it sold more than 27 million vehicles. The increasing number of affordable automobiles produced in Asian countries along with rising partnerships with other nations that include developed and other emerging countries with rising disposable income has helped Asia-Pacific growth at a steady pace during the forecast period.
The global automotive gear shifter market is led by players like:
By Component Type
By Vehicle Type
By Technology Type
An automotive gear shifter is formally known as a transmission lever. It is a metal-based lever attached to the transmission section of an automobile.
The global automotive gear shifter market is expected to grow as a result of increasing research and innovation in gear shifter technology.
According to study, the global automotive gear shifter market size was worth around USD 12.04 billion in 2022 and is predicted to grow to around USD 15.48 billion by 2030.
The CAGR value of the automotive gear shifter market is expected to be around 3.22% during 2023-2030.
The global automotive gear shifter market is expected to be dominated by Asia-Pacific during the forecast period.
The global automotive gear shifter market is led by players like Ficosa International, ZF Friedrichshafen AG, GHSP (Grand Haven Stamped Products), BorgWarner Inc., Stoneridge, Inc., Eaton Corporation, Kongsberg Automotive, Xianfei Group, DURA Automotive Systems, Orscheln Products, Kostal Group, Atsumitec Co., Ltd., Fuji Kiko Co., Ltd., Marmon-Herrington, and KUS (Kunshan).
The report explores crucial aspects of the automotive gear shifter market including a detailed discussion of existing growth factors and restraints while also browsing future growth opportunities and challenges that impact the market.