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The Delayed Economic Recovery, Along With Investments in the Construction and Agricultural Industries, Will Drive Strategic Partnerships and Reduce Entry Barriers for New Market Participants
18-Sep-2025
Global
Market Research
KB71-01-00-00-00
AU_2025_33883
The construction and agricultural equipment market is expected to experience moderate growth in the North American market and moderate-to-strong growth in the European market until 2030. Investments in residential, urban, and transportation infrastructure will drive sales of compact construction equipment, while the consolidation of farms (both in North America and Europe) will drive demand for higher HP tractors. Though wheeled undercarriage systems dominate the market, tracked units are expected to grow at a compound annual growth rate (CAGR, 2024-2030) of 4.2% and 3.2% in the North American and European off-highway equipment transmission components markets, respectively. Operator or end-customer requirements for compact equipment in a wide range of operations, such as utility, industrial, agriculture, and landscaping and green spaces, will drive the demand for auxiliary systems. The growing need for multiple attachment types in compact equipment will drive the demand for hydraulic units for auxiliary systems.
Supply chain challenges, evolving customer behavior, and ongoing trade wars will influence existing as well as new partnerships between OEMs and transmission component suppliers.
This research focuses on the unit demand for key transmission components and also analyzes the competitive landscape. In addition, the study highlights key partnerships and trends influencing the market and forecasts demand for 2030.
Author: Krishna Achuthan
Scope of Analysis
This research analyzes the growth of the off-highway equipment transmission components market.
Objectives:
- Analyze growth trends and growth opportunities in the construction and agricultural equipment industry
- Evaluate technology trends and market dynamics for the transmission components market
- Examine market status and understand expectations by 2030
- Analyze the competitive and technological landscape in the transmission components market
Key Questions This Study Answers:
- What are the main areas of demand and growth?
- Who are the top industry participants, and what are their anticipated development and launch activities?
- What are some of the notable partnerships and highlights in the industry?
- What are the main factors and trends shaping growth?
| Scope | |
|---|---|
| Geographic coverage | North America (the United States and Canada), Europe (the European Union and the United Kingdom) |
| Study period | 2024-2030 |
| Base year | 2024 |
| Forecast period | 2025-2030 |
| Monetary unit | US dollar |
| Application scope | Construction and agriculture |
| Equipment scope | Excavators, loaders, and agricultural tractors |
| Component Scope | OE demand for planetary gearbox (standalone and integrated), axles, PTO units, hydraulics, and 3-point hitch (for agricultural tractors) |
Geopolitical Chaos
| Why | Economic uncertainties caused by the Russo-Ukrainian conflict and trade wars have significantly affected OEM operations, supplier confidence, and consumer purchase decisions. |
| Frost Perspective | OEMs that announced plans to launch manufacturing plants in the United States are expanding capacities to sustain growth and trade relations. However, the positive impact on sales is expected in the medium-to-long term. |
| Frost Perspective | Bilateral trade agreements and the strengthening of trade between countries such as Brazil-Mexico, Canada-Europe, and India-Europe will drive expansion and collaboration among stakeholders. |
Industry Convergence
| Why | Off-highway industry stakeholders will adopt strategic measures to counter short-term challenges. |
| Frost Perspective | Strategic partnerships among OEMs, suppliers, start-ups, financial institutions, and rental companies will support their expansion and sustain growth. |
| Frost Perspective | Vertical integration will expand the product portfolio and enable one-stop solutions for end customers. |
Competitive Intensity
| Why | New technologies are continuously impacting the industry in fields such as electrification and automation. |
| Frost Perspective | Strategic synergies are expected to offer low-cost solutions to alleviate customer hesitance. |
| Frost Perspective | Acquisitions and joint ventures among OEMs-solution providers and OEMs-contractors, respectively, will surge in the short term to secure growth in specific applications. |
Competitive Environment
| Number of Competitors | ~25 global companies with revenue greater than $1 billion |
|---|---|
| Competitive Factors | Product efficiency, durability, energy efficiency, total cost of ownership, after-sales support, customization, safety compliance, dealer network, brand reputation, and global adaptability |
| Key End-user Industry Verticals | Manufacturing, construction, and agricultural equipment |
| Leading Competitors | ZF Group, Bosch, Cummins, Allison Transmission, Bonfiglioli, Carraro S.p.A, Parker Chelsea, Eaton, and Mottrol |
| Distribution Structure | OEMs, direct sales, and the aftermarket |
| Notable Mergers and Acquisitions | Allison Transmission acquired Dana Incorporated’s off-highway division in June 2025 |
Key Competitors—OEMs and Suppliers
| OEMs | North America | Europe |
|---|---|---|
| OEMs |
|
|
| Suppliers | North America | Europe |
|---|---|---|
| Suppliers |
|
|
Scope of Analysis
Off-Highway Equipment Segmentation
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8
The Impact of the Top 3 Strategic Imperatives on the Off-Highway Equipment Transmission Components Industry
Economic Environment—North America
Economic Environment—Europe
Construction Industry—North America
Construction Industry—Europe
Construction Industry Definitions—North America
Construction Industry Definitions—Europe
Agriculture Acreage in North America
Profile of Farms in the United States
Agriculture Acreage in Europe
Profile of Farms in Europe
Competitive Environment
Key Competitors—OEMs and Suppliers
Growth Metrics
Excavators and Loaders—Growth Drivers
Excavators and Loaders—Growth Restraints
Agricultural Tractors—Growth Drivers
Agricultural Tractors—Growth Restraints
Forecast Considerations
Forecast Considerations: Demand Forecast—Distribution of Transmission Components by Application: Excavators and Loaders
Forecast Considerations: Demand Forecast—Distribution of Transmission Component by Application: Agricultural Tractors
Market Forecast—Off-Highway Equipment Unit Sales by Region
Market Forecast—Off-Highway Equipment Unit Sales by Application
Market Forecast—Off-Highway Equipment Unit Sales by Equipment Type
Market Forecast—Excavator Unit Sales
Market Forecast—Loader Unit Sales
Market Forecast—Agricultural Tractor Unit Sales
Market Forecast—Off-Highway Equipment Transmission Components
Forecast Analysis—North America and Europe
Off-Highway Equipment OEM Market Share
OEM Market Share Analysis
Competitive Landscape of Component Suppliers—North America
Competitive Landscape of Component Suppliers—Europe
Competitive Landscape—Cluster 1: Gears, Gearboxes, Transmission Systems
Competitive Landscape—Cluster 2: Axles, Driveshafts, PTO Units
Growth Metrics
Off-Highway Equipment Unit Sales
Off-Highway Equipment Unit Sales by Application
Off-Highway Equipment Unit Sales by Equipment Type
Excavator Unit Sales
Loader Unit Sales
Agricultural Tractor Unit Sales
Off-Highway Transmission Components
Forecast Analysis—North America
Growth Metrics
Off-Highway Equipment Unit Sales
Off-Highway Equipment Unit Sales by Application
Off-Highway Equipment Unit Sales by Equipment Type
Excavator Unit Sales
Loader Unit Sales
Agricultural Tractor Unit Sales
Off-Highway Transmission Components
Forecast Analysis—Europe
Excavators and Loaders—Demand and Technology Trends
Trend 1—Electric Equipment
TCO Analysis—Electric Excavators
TCO Analysis—Electric Wheel Loaders
Top Electric Models in the Market
Trend 2—System-Level Innovations and AI
Trend 2—Smart Equipment
Trend 2—Key Products with Smart Features
Trend 3—BMT
Agricultural Tractors—Demand and Technology Trends
Trend 1—Precision Agriculture
Trend 1—Precision Agriculture, OEM Features
Trend 1—Precision Agriculture, Third-Party Solution Providers
Trend 2—Autonomous Tractors
Trend 2—Autonomous Tractors, Key Products and Features
Trend 3—BMT
Trend 3—Key Service Provider Features
Tractor Implements by Application
ISOBUS for Agricultural Equipment
Implement Automation Functions
Off-Highway Ecosystem
Off-Highway Equipment—Construction Equipment Transmission Types
Off-Highway Equipment—Agricultural Tractor Transmission Types
Powershift Transmission
Hydrostatic Transmission—Wheeled Equipment
Hydrodynamic Torque Converter—Wheeled Equipment
Synchromesh Transmission Mechanical—Agricultural Tractors
CVT—Wheeled Equipment
Tracked Equipment—Travel/Swing Device
Agricultural Tractor PTO—System Overview
PTO Specifications
Axles—Wheeled Equipment
Axles Overview—Agricultural Tractors
Component Cost Contribution—Tracked Excavators
Excavator Component Cost Contribution Summary
Component Cost Contribution—Backhoe Loaders
Backhoe Loader Component Cost Contribution Summary
Component Cost Contribution—Agricultural Tractors
Agricultural Tractor Component Cost Contribution Summary
Component Cost Contribution—Estimation Methodology
Growth Opportunity 1: Electrification
Growth Opportunity 2: Software Control Systems
Growth Opportunity 3: Off-Highway Equipment Transmission Component Demand
Major OEM Product Launches—Electric Equipment
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
Legal Disclaimer
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Supply chain challenges, evolving customer behavior, and ongoing trade wars will influence existing as well as new partnerships between OEMs and transmission component suppliers.
This research focuses on the unit demand for key transmission components and also analyzes the competitive landscape. In addition, the study highlights key partnerships and trends influencing the market and forecasts demand for 2030.
Author: Krishna Achuthan
| Deliverable Type | Market Research |
|---|---|
| Industries | Automotive |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | off-highway transmission market |
| Keyword 2 | heavy equipment drivetrain report |
| Keyword 3 | Europe & NA equipment forecast |
| Podcast | No |
| Predecessor | KB71-01-00-00-00 |
| WIP Number | KB71-01-00-00-00 |