Market Challenges And Opportunities

Driving Factors in growth of Automotive Gear Shifter Market

Growing automotive industry is a major factor driving growth of the automotive gear shifter market. According to statistics published by OICA the global sales of vehicles reached to 96.8 million units in 2017, from 93.9 million units in 2016. Several vendors in the market are replacing mechanical components with its electronic counterpart in order to increase the efficiency of transmission system so as to enhance the speed of changing gears. Furthermore, rising sales of modern energy-efficient vehicles especially in emerging economies such as China, India, and Brazil, owing to rising disposable income, improved living standard, and others is fueling the market growth as automotive gear shifter are embedded with these vehicles. For instance, according to statistics published by OICA, the sales of passenger cars in India in 2017, was 3.2 million units up from 2.9 million units in 2016.

Rising adoption of electric vehicle is prominently driving growth of automotive gear shifter vehicle. Consumers have shifted their preference towards electric vehicles, owing to rising environmental concern and rising fluctuations in fuel prices. For instance, according to Germen Federal Motor Transportation Authority, 61% increase was registered in the sales of plug-in electric vehicles in 2018 as compared to preceding year. Thus, rising popularity of electric vehicles among consumers globally, is fueling growth of the automotive gear shifter market as electric gear shifters are embedded in electric vehicles.

Increasing demand for fuel-efficient components is also fueling growth of the gear shifter market. Increasing prices of fuels has propelled consumers toward fuel-efficient vehicles, which in turn drives growth of the market as automotive gear shifter increases the mileage of a vehicle that increases fuel-efficiency of the vehicle. Moreover, increasing fuel efficiency reduces the cost spent on fuel. For instance, according to Energy Information Administration (EIA) in the U.S. gasoline prices averaged US$ 2.41 per gallon in 2017, which was 13% higher than in 2016.

Furthermore, automotive gear shifter system is helpful in hilly areas and heavy traffic conditions. Thus, all these factors boosts growth of the automotive gear shifter market. However, high cost and complex design of automotive gear shifter system is expected to hinder growth of automotive gear shifter market.