Advanced Gear Shifter System Market is segmented By Technology Type (Automatic Gearshift, Shift by Wire), By Vehicle Type (Light-duty Vehicles, Medium-duty Vehicles, Heavy-duty Vehicles), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Report Overview
Advanced Gear Shifter System Market is expected to grow at a CAGR of 7.5% in the forecast period of (2024-2031).
The advanced gear shifter system is the system in which the gear shifts with automatic transmission. In the automobile industry, a generational change is occurring for vehicles. Vehicles are shifting to modern automatic transmissions with an increasing number of gears and mechanical linkages are disappearing in favor of shift by wire.
Advanced Gear Shifter System Market Summary
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Metrics |
Details |
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Market CAGR |
7.5% |
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Segments Covered |
By Technology Type, By Vehicle Type, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Advanced Gear Shifter System Market Dynamics
The growing automotive industry, mainly due to rising demand for passenger cars, coupled by vehicle standards set by governments of various regions are projected to create healthy growth opportunities for the manufacturers of automotive gear shift systems in near future.
The Shift by wire reduces the human machine interface efforts and improves performance, moreover provides better features such as effortless shifting, integrated safety feature, integration with custom vehicle features, reduced space claim and improved operator productivity while offering smoother transaction between gears and replaces the current mechanical coupling.
The growing automotive industry, mainly due to rising demand for passenger cars, is projected to create healthy demand for advanced gear shift systems during the forecast period.
In addition, vehicle standards set by governments of various regions are also projected to create healthy growth opportunities for the manufacturers of automotive gear shift systems in near future as most manufacturers are focused on the manufacturing of more efficient automotive gear shift systems with low fuel & emission. Additionally, growing adoption of electric vehicles is also one of the key drivers creating opportunities for the overall automotive gear shift systems market.
COVID-19 Impact Analysis
The COVID-19 pandemic has disrupted the global economy and halted the key processes of almost all companies. Consequently, the global advanced gear shifter system market was also affected. The disturbances in supply chain management and transportation of goods and services had a negative impact on the growth of the market. Many manufacturing and production units were disrupted due to the government enforced lockdowns and curfews across the world which led to losses and wastage of many products. The automotive industry also faced losses during the pandemic. The pandemic also significantly changed the consumer demand and behaviour. The uncertain and unexpected situation caused by the pandemic significantly impacted the market hence, slowing its growth. However, the post-pandemic scene has improved and the global advanced gear shifter system market has recovered. The resumption of manufacturing operations will play a major part to boost the production and sales of vehicles which in turn will boost the growth of the market. Hence, the market is set to grow at a high rate.
Advanced Gear Shifter System Market Segmentation
Based on application, Advanced Gear Shifter System Market for Automotive market is classified into Automatic Gearshift and Shift by Wire
Currently shift by wire is the dominant segment. The Shift by wire system converts mechanically actuated automatic transmissions into electronically shifted transmissions. Vehicle Original Equipment Manufacturers (OEMs) can easily integrate this space saving system into their chassis with minimal wiring required. Shift by wire allows vehicle original equipment manufacturers to integrate more than just transmission shifting into a single controller. Six input and two output connections give vehicle original equipment manufacturers better control over auxiliary systems while improving operator efficiency. Shift by wire system provides vehicle original equipment manufacturers with a reliable platform for effortless shifting, integrated safety feature, integration with custom vehicle features, reduced space claim and improved operator productivity. Hence shift by wire gear technology will witness higher growth rate replacing the conventional systems in the automotive during the forecasted period (2021-2028).
Depending on the vehicle type, Advanced Gear Shifter System Market for Automotive is segmented into Light-Duty Vehicles, Medium-Duty Vehicles, and Heavy-Duty Vehicles
Currently light-duty vehicles are the dominant segment. The light-duty vehicle segment is projected to be the largest market for advanced gear shifter systems, by vehicle type. Advanced shifter technologies such as automatic shifter and shift-by-wire are extensively used in mid-size and economy class of light-duty vehicles. On the other hand, automatic shifters are used in luxury vehicles. Increasing sales of mid-size and luxury class vehicles is driving the growth of light-duty vehicle segment and hence advanced gear shifter system.
Similarly, the heavy-duty vehicles and medium-duty vehicles segments are also growing faster due to an increase in the demand for transportation of goods with a surge in global population and rising vehicle production. According to the International Organization of Motor Vehicle Manufacturers (OICA), 27,016,764 units were sold, including heavy trucks, light vehicles, buses, and coaches and 64,341,693 units of passenger cars were sold worldwide in 2019.
Advanced Gear Shifter System Market Geographical Share
By geography, the Global Advanced Gear Shifter System Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA)
The Asia Pacific region is expected to grow with the highest CAGR during the forecast period owing to the immense growth in the end user industries. The Asia Pacific market is forecasted to hold the largest market share and is estimated to grow at a significant CAGR during the forecast period. The market growth in the region can be attributed to the increase in vehicle production and adoption of advanced shifter technology in vehicles.
Expansion of leading OEMs and automotive component suppliers in developing economies like India and China are also projected to drive the growth in this region. Some of the leading automotive manufacturers across the globe are heavily investing in the Asia Pacific region. For instance, the German automotive company Volkswagen has recently announced plans to invest around 1 billion euros in the country over the next few years to develop six new models. Also, by 2021, South Korea’s second largest automobile manufacturer, Kia Motors intends to increase investments in the region to 2 billion dollars from the present 1.1 billion dollars. Suzuki Motor Corp has also announced investments of about 3 billion dollars over the next three years to maintain its position in the Indian passenger vehicle market.
Market Companies and Competitive Analysis
The Global Advanced Gear Shifter System Market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Some of the major players include Dura Automotive Systems, Ficosa International S.A, Kongsberg Automotive Holding ASA, ZF Friedrichshafen AG, Curtiss-Wright, Küster Holding GmbH, Lumax Industries Ltd, Stoneridge Inc, Silatech, Magneti Marelli, etc.
These key players in the market are mainly focus on new product launches, expansions, mergers & acquisitions to enhance their position in the global advanced gear shifter system market. For example, in March 2018, Ficosa announced that it has established itself in Africa for the first time, opening a new production center in Rabat, Morocco. Ficosa would produce electric cable sets, rear-view mirrors, shifter systems, and washer systems in this plant. In March 2021, Standard Motor Products Inc. (SMP) announced the acquisition of particulate matter sensor business of Stoneridge Inc. This acquisition enables Standard Motor to use the advanced emissions control technology and will help the company to strengthen its global position.
Dura Automotive Systems
Overview: Dura Automotive Systems is a global automotive supplier specializing in the design, engineering and manufacturing of automotive solutions.
Product Portfolio: Dura’s products include mechatronic control systems, lightweight chassis and body systems, exterior systems and automobile safety systems.
Key Developments: In August 2020, MiddleGround Capital announced the acquisition of majority ownership of Dura Automotive Systems from Bardin Hill Investment Partners.
