Automotive Gear Shifter MarketSize and Trends

Growing use of automatic gear shifter system as compared to manual gear shifter system is one of the major factors, which enhances the demand for advance systems of gear shifter. In various regions, strict government vehicle standards for new vehicle is fueling growth over the forecast period. Manufacturers are using more fuel and emission efficient components in vehicles in order to follow government guidelines. For instance, in 2012, Environment Protection Agency (EPA) in the U.S. amended standards such as national program for greenhouse gas emission (GHG) and fuel economy standard for light-duty vehicles (passenger cars and trucks).

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.

Market Trends

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.