Off-Highway Equipment Transmission Components Market, North America and Europe, 2024-2030

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

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.

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

• TEREX CORPORATION
• CATERPILLAR
• KOMATSU
• XCMG
• LIEBHERR
• SANY
• VOLVO
• HITACHI
• DOOSAN BOBCAT
• SANDVIK
• EPIROC
• KOBELCO
• METSO OUTEC
• LIUGONG
• MANITOU

Europe

• SANDVIK
• EPIROC
• VOLVO
• LIEBHERR
• KOMATSU
• CATERPILLAR
• XCMG
• SANY
• HITACHI
• DOOSAN BOBCAT
• EPIROC
• KOBELCO
• METSO OUTEC
• LIUGONG
• MANITOU

Suppliers

North America

• Dana Incorporated
• Allison Transmission
• Cummins
• Omni Powertrain Technologies
• Muncie Power Products
• Heavy Hitch
• Ruegg MFG
• Behlen Country
• Kolpin Outdoors
• Agri Supply
• Parker Chelsea

Europe

• Kessler+Co
• Bosch
• Eaton
• ZF Group
• Bonfiglioli
• Carraro S.p.A
• Comer Industries S.p.A
• LHY Powertrain
• Farinia Group
• NAF Axles
• ESCO Group
• Zuidberg