Off-Highway Equipment Transmission Component Market Size - By Component, By Propulsion, By Vehicle, By Technology, By Sales Channel, Growth Forecast, 2025 - 2034

Off-Highway Equipment Transmission Component Market Size

The global off-highway equipment transmission component market size was estimated at USD 2.9 billion in 2024. The market is expected to grow from USD 3 billion in 2025 to USD 4.8 billion in 2034, at a CAGR of 5.4%, according to latest report published by Global Market Insights Inc.

Major expenditure is being made on infrastructure projects (roads, bridges, smart cities, housing) that will support the demand for construction equipment. Infrastructure projects must use heavy machinery with effective transmission systems for heavy loads over prolonged periods. Rapid urbanization, primarily in Asia and Africa, is increasing demand for off-highway machinery.
 

Similarly, agriculture is quickly adapting to mechanization, particularly in developing countries such as India, China, and some of Africa. Increasing population, food security and decreased labor is causing farmers to use tractors, harvesters, and sprayers with advanced transmission systems. The adoption of hydrostatic transmissions and electro-hydraulic transmissions are gaining market share due to their precision, ease of operation and efficiency.
 

The mining industry is still growing because of global consumption of minerals, rare earth elements, and fossil fuels. Heavy-duty machinery such as haul trucks, drills, and loaders depend on robust transmissions to operate in difficult conditions. There is interest in electrification of mining to reduce emissions, however, conventional diesel-powered equipment still needs very durable transmissions.
 

Environmental regulations and decarbonization goals are causing OEMs and operators to incorporate hybrid and electric powertrains. This is affecting the nature of transmissions that are now required to be incorporated with motors, battery and digital controls. Moving equipment Electric drive trains can be used in the material handling sector and on smaller equipment, and hybrid systems are in testing in the mining and construction sectors. This is a major change in the transmission components market and one of the largest growth opportunities being invested in by OEMs including Allison, and ZF, by investing in electrified solutions.
 

Agricultural producers in APAC (particularly in India, China, Southeast Asia) are using mechanized tractors and harvesters more, using precision agriculture tools (including GPS and sensors), and using smaller but more powerful implements. Shrinking labor, demand for productivity, and policies to promote small high-efficiency tractors are contributing to the demand for efficient transmissions and other drivetrain components.
 

In June 2025, Allison Transmission declared a finalized deal to purchase the Off-Highway business of Dana at USD 2.7 billion, which will significantly expand its global reach, as well as its product line in powertrain. The purchase will increase by about 11,000 people to the workforce of Allison and a business presence in more than 25 countries. The acquisition also enhanced Allison in terms of construction, agriculture and mining besides adding its hybrid and electric solutions. It is predicted to close the transaction in the fourth quarter of 2025.
 

Off-Highway Equipment Transmission Component Market Trends

• Hydrostatic and electro-hydraulic systems are on the rise because they can precisely control the speed, offer better maneuverability and they can offer dynamic load conditions. These systems enhance the construction, agriculture as well as mining applications besides providing smoother operation in the construction sector as well as mechanical wear being reduced.
   
• Off-highway transmissions are being developed with more durability in line with the rough working environment of off-highway vehicles including heavy loads, rough terrain, and extreme weather conditions. Technology advances in materials, cooling methods and drivetrain design are increasing reliability, lowering maintenance, and prolonging the life of off-highway vehicles such as construction and forestry machines, tractor and construction machines, and agricultural machines.
   
• The off-highway sector is quickly adopting electric and hybrid powertrains as a response to stricter emissions regulations and enhanced fuel efficiency. The exhibit of Dana at Bauma 2025 comprised samples of many integrated drive solutions in electric-battery, hybrid, and alternative fuels, which reflect the opportunities of new sources of energy.
   
• The modern transmissions are being enhanced with sensors, ionic interconnection, and operational efficiencies, with telematics and real-time monitoring. Digitalization facilitates reducing downtime, as well as efficiency, letting fleet operators assess performance and optimize using various types of off-highway equipment.
   

Off-Highway Equipment Transmission Component Market Analysis

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Based on component, the off-highway equipment transmission component market is divided into gears & gear systems, clutches & brakes, torque converters, hydraulic components, control systems and power transfer components. The gears & gear systems segment dominated the market, since modern gear systems integrate with hybrid and electric drivetrains, enhancing efficiency and energy management. The segment accounted for 31.6% in 2024 and is expected to grow at a CAGR of 6.1% through 2034.
 

• Planetary gear sets are being adopted more in gears and gear systems for compact, high-torque applications to make these applications more efficient, reliable, and space-efficient in off-highway machines. The use of low-weight materials like alloys and composites allows the system to be in low weight while adding additional strength. Noise and vibration suppression systems are also being integrated to improve operator comfort and to improve longevity of parts.
   
• Clutch and brake systems are being modified to include multi-disc clutches allowing them to handle higher torque and add durability to heavy machinery. Operators are increasingly preferring wet brake systems due to their ability to dissipate heat and long service life. Automated parking brakes add safety to operators, reduce manual operator effort, and improve safety while having integrated parking brakes. Innovations in power take-off (PTO) clutches provide smooth engagement for auxiliary equipment, which improves machine operation and enhances the operational capability of the machine.
   
• Torque converters are undergoing advancements, starting with hydrodynamic converters that will improve energy transfer efficiency in automatic transmissions. Variable geometry converters will increase torque delivery across a range of engine speeds, leading to improved performance. There is no question, even with the evolution of better transmission solutions, that the latest extremely large next-generation hydrodynamic automatic torque converters will have more advanced electronic control systems available in the marketplace, which will promote better shift quality, increased responsiveness, and ultimately superior performance of the drivetrain of off-highway equipment.
   
• In June 2025, Dana Incorporated focused its efforts on the production and supply of light and commercial vehicle systems both traditional and electrified following the divestiture of its off-highway business. To this end, Dana intends to simplify its operating model and reduce complexity in the manner it has previously conceived and be positioned as a supplier of both traditional and electrified vehicle systems for the on-highway market.

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Based on propulsion, the off-highway equipment transmission component market is divided into ICE, electric and hybrid. The ICE segment dominated the market, accounting for around 81% in 2024 and is expected to grow at a CAGR of 5.2% through 2034.
 

• Electrification trend is on the increase and yet the ICE is quite popular as an engine in off-highway applications due to its reliability and power. FPT (Fiat Powertrain Technologies) industrial also keeps enhancing its off-highway engines by ensuring that they are efficient in fuel consumption and emission reduction to meet the new environmental quality standards.
   
• Off-highway industry is also shifting to electric powertrains to comply with stringent emissions requirements and to enhance fuel economy. For example, at Bauma 2025, Dana introduced its Spicer eSG001 e-Transmission, which is built for battery-electric compact wheel loaders. Dana’s e-Transmission combines a TM4 motor with a TM4 inverter, providing vehicles with improved mechanical performance, while also enhancing OEM speed to market.
   
• Hybrid systems are becoming popular in off-highway applications due to demonstrated success in reducing fuel consumption and engine emissions. The Fusion-Drive hybrid powertrain was announced at the event recently and is being developed by Upfit UTV in collaboration with OMI. The Fusion-Drive will combine electric and internal combustion components to enhance performance in off-road vehicles.
   
• ZF opened a facility in Coimbatore, India, and launched a new ERGOPOWER M transmission in June 2025, targeting different off-highway applications. This launch highlights the industry's emphasis on advanced and reliable drivetrain solutions for construction, agriculture, and mining machines.
   

Based on vehicle, the off-highway equipment transmission component market is segmented into construction equipment, agricultural machinery, mining equipment, forestry equipment and material handling equipment. The construction equipment segment held a share of 53% in 2024 and dominates the market.
 

• Construction equipment segment dominance is driven by strong demand for durable, high-performance transmissions in machinery such as excavators, loaders, and cranes, which are essential for large-scale infrastructure, urban development, and industrial projects worldwide.
   
• More construction equipment is moving towards sophisticated advanced transmissions, as well as hybrid drives, to enhance fuel economy, reduce emissions and develop a better performance. Compact loaders and cranes are also being electrified, and telematics and predictive maintenance tools enhance uptime which is relevant in large infrastructure and urban development projects.
   
• There is an increase in the electrification of all material handling equipment as battery-electric forklifts, aerial lifts, and warehouse machines continue to be used. Machines that run on electricity and hybrid power can offer solutions to the zero-emission work in the indoor environment, the accuracy in controlling machines, and operation cost reduction. Telemetry solutions and automation also provide improvements in efficiency, safety, and flexibility in logistics, warehousing, and industrial material handling environments.
   
• Precision agriculture is leading to the acceptance of hydrostatic and electro-hydraulic transmissions in tractors and harvesters. Hydrostatic and electro-hydraulic transmission solutions allow for variable speed control of machines, provide better fuel efficiency, and, along with GPS or sensor-based automation, help to improve productivity for farmers. More importantly, in adoption of better machines, farmers can reduce labor dependency in their activities and adapt to mechanization in emerging and developed markets.
   
• Mining equipment also demands tougher and strong transmissions with ability to withstand extreme loads and environment. Solutions for electrified or hybrid powertrains are being assessed to reduce emissions and operating costs. Innovative drivetrain solutions combined with predictive maintenance and telematics enhance the safety, efficiency, and productivity of surface and underground mining equipment.
   
• Dana introduced new efficient drivetrains for mid-sized mining machines at Bauma 2025. Spicer 342 transmission, and 262HD/162HD axles are among the drivetrains that are designed for use with alternative fuels, increased precision and reliability, and operator comfort with zero-jerk brake functionality. All of this allows for smoother, safer, and more efficient mining applications.
   

Based on technology, the off-highway equipment transmission component market is fragmented into mechanical transmission systems, hydrostatic & hydro-mechanical powertrains, hybrid & electrified powertrains, and control & actuation technologies. The hybrid & electrified powertrains are the fastest-growing off-highway transmission technology due to rising emissions regulations, increasing fuel costs, and sustainability mandates and is expected to grow at CAGR of 7.5% during 2025 to 2034.
 

• Mechanical transmissions continue to be important for heavy-duty off-highway equipment due to their durability and simplicity. OEMs are enhancing gear designs, materials, and lubrication systems to improve efficiency, reduce wear, and improve service life. Advanced mechanical systems are still deployed in high load applications in construction, mining, and forestry machinery.
   
• The use of hydrostatic and hydro-mechanical transmissions is still more popular because of the smooth control of the variable speed and maneuverability. The actual progress in this field is dedicated to the enhancement of efficiency, minimization of parasitic losses, and telemetry data collection / digital monitoring of the system. The usage of this technology is rising in the fields of agriculture, construction, and compact machinery that require flexibility and comfort among operators.
   
• Off-highway machinery is undergoing transformation through hybrid and fully electric powertrains. Original equipment manufacturers build electric motors, batteries, and regenerative braking into their vehicles' systems to reduce emissions and fuel consumption. Adoption is increasing in the material handling, construction, and compact equipment sectors of the industry, and is driven by improving regulatory requirements, energy efficiency incentives, and increasing use of electric off-highway equipment in urban areas and inside buildings.
   
• In July 2025, Caterpillar released a new ACERT engine with an integrated powershift transmission for heavy excavators. This system improves fuel economy, increases efficient torque delivery, and increases durability, for dependable service life under rigorous construction and mining applications while contributing to productivity, and reducing costs.
   

Based on sales channel, the off-highway equipment transmission component market is bifurcated into OEM and aftermarket. The OEM segment held a share of 78.1% in 2024 and is expected to grow at 5.4% CAGR from 2025 to 2034. OEMs are adopting modular design approaches to offer customizable drivetrain solutions that cater to specific application needs.
 

• Manufacturers are progressively incorporating electric and hybrid powertrains into equipment used off-highway, due to stricter emissions regulation and a need for improved fuel efficiency. Whether in construction, agriculture or mining, all OEMs have the same goal to manufacture products that ensure cleaner and more sustainable operation.
   
• The implementation of telematics systems with OEM equipment manufacturers could enable the monitoring of performance in real-time, which will lower downtime through the promotion of predictive maintenance. This results in efficiency and long life of the equipment to keep pace with the technological changes of industry including smart equipment.
   
• The emergence of e-commerce platforms has reshaped parts distribution in the aftermarket, allowing customers to easily access a wide selection of drivetrain components. Online platforms simplify the fulfillment process, lead to improvements in inventory management, and give suppliers access to greater market reach.
   
• In April 2025, CNH Industrial formed a collaboration with Bosch Rexroth to jointly develop electro-hydraulic transmissions for tractors and harvesters. The project will strive to achieve efficiency, facilitate accurate control and integrate telematics to predictive maintenance and thereby enhance reliability and reduce downtime, and enhance performance in agricultural machinery.

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US dominated the off-highway equipment transmission component market with around 86.1% share in 2024 and generated USD 728.9 million in revenue owing to rapid urbanization, rising disposable incomes, and growing consumer preference for premium vehicles.
 

• Hydrostatic transmissions are being used more in off-highway equipment in US because of their efficiency and flexibility. These transmissions provide smooth power delivery and a lower mechanical complexity, which makes them suitable for applications involving variable speed control, like in construction and agricultural machinery.
   
• Use of electro-hydraulic systems in off-highway equipment is picking up momentum with the increasing demand for precision and energy efficiency. Electro-hydraulic systems combine hydraulic power and electronic control, which can deliver faster and more efficient operation, particularly in fine-control intensive tasks and adjustability.
   
• The US off-highway equipment industry is experiencing huge growth for aftermarket services like repair, maintenance, and replacement of parts. The growth comes on account of the machinery becoming highly complex and equipment lifecycles extending, leading the operators to invest in full-service solutions.
   
• In August 2025, U.S. manufacturers such as John Deere transformed backhoe loaders such as the 710 P Tier with PowerShift transmissions having five forward and three reverse speeds. This product upgrade offers more control for operators, more productive machine utilization, and more durability to address the increased demand for productive and versatile equipment to help in construction and infrastructure projects.
   

The off-highway equipment transmission component market in North America is expected to experience significant and promising growth from 2025 to 2034 at a CAGR of 4.6%.
 

• Electric and hybrid off-highway machinery is booming in North America and is driven by the emission controls and commercial environmental ambitions. OEMs are spending enormous amounts of money on electric drivelines and hybrid transmission technology to enhance efficiency, reduce operating costs and enhance environmental compliance with the requirements of the U.S. EPA and Canada regulations.
   
• Reliability and productivity demand is fueling uptake of high-tech hydrostatic and electro-hydraulic transmissions in construction, farm, and mining equipment. To meet the tough requirements of diverse operating environments, North American manufacturers are developing integrated solutions using smart controls, enhanced fuel economy, driver comfort and machine life.
   
• As machinery life cycles continue to stretch throughout North America, the transmission components aftermarket is expanding. Aftermarket service providers are offering predictive maintenance, telematics integration, and remanufacturing services. In response to changing equipment life cycles, all these services reduce downtime and enhance cost savings and aftermarket services have become an important additional growth area beyond OEM sales throughout North America.
   
• In July 2025, a U.S.-based supplier, Southwest Steel Processing, reaffirmed increasing need for domestically forged drivetrain and transmission cogent. With OEMs' emphasis on supply chain resilience, increasing preference exists these days for domestically manufactured components to restrict dependency on imports, encourage reliability, and satisfy stringent quality requirements for construction and mining equipment for big-sized projects in the U.S.
   

The off-highway equipment transmission component market in Europe is expected to experience significant and promising growth from 2025 to 2034, holding a share of 21.3% in 2024.
 

• European OEMs are progressively using electric and hybrid drivetrains in off-highway machines to fulfill emissions standards and sustainability requirements. This transition requires the development of advanced transmission systems that are capable of effectively addressing the special needs of electric and hybrid powertrains.
   
• Telematics, automation, and predictive maintenance are some of the digital technologies that are revolutionizing the off-highway equipment industry in Europe. These technologies increase productivity and reduce downtime and efficiency of transmission systems as they constantly watch and analyze them on a real-time basis.
   
• In June 2025, the European Construction Equipment Association (CECE) and the European Agricultural Machinery Association (CEMA) issued a joint statement called the Role of Construction and Agricultural Machinery in the Decarbonization of Europe, that provided policies to the construction and agricultural machinery industry to assist in reducing emissions and make off-highway equipment more energy efficient.
   
• The varied set of applications for off-highway machinery in Europe calls for tailored transmission solutions. Designers are creating versatile and modular transmission systems which can be optimized to industry needs, such as agriculture, construction and forestry to give the best performance under various conditions.
   

The off-highway equipment transmission component market in Germany is expected to experience high growth from CAGR 4.6% during 2025 to 2034.
 

• Emissions laws and sustainability goals are making Germany the leader in electrification and hybrid powertrains in off-highway technologies. Such a transition requires the creation of sophisticated transmission systems that can meet the specific needs of electric and hybrid powertrains.
   
• Germany The off-highway equipment industry is transforming with the implementation of digital technologies such as telematics, automation, and predictive maintenance. The technologies increase the efficiency of operations, reduce downtime and improve the performance of the transmission systems through real-time monitoring and data analytics.
   
• Diversity of off-highway equipment application in Germany: The comprehensive spectrum of application of off-highway equipment in Germany demands special transmission solutions. Off-highway manufacturers are developing scalable and modular transmission systems that can be customized to suit particular industry applications, including agriculture, construction, and forestry, to most effectively work in different conditions.
   
• Germany's off-highway equipment market is pursuing tailored, modular transmission systems in June 2025. Manufacturers are designing customizable systems that can be modified to suit rugged conditions in agriculture, construction, and forestry and optimize their performance, reliability, and efficiency with each user and offer industry-specific customizations and enhance versatility to the machine.
   

The off-highway equipment transmission component market in Asia Pacific is expected to experience significant growth from 2025 to 2034. The region held a share of 38.5% in 2024.
 

• In China, India, and Southeast Asia, stricter emission regulations and incentives from governments are requiring OEMs to pivot off-highway equipment (e.g. loaders, tractors, forklifts) to electric transmissions and battery-powered drivetrains. These substitutes benefit urban air quality and emissions policies.
   
• In Asia-Pacific, compact electric construction equipment (mini-excavators, small loaders) with smaller battery packs are on the rise, as one has limited space plus noise and pollution concerns. These machines will operate well in dense urban environments with very small power requirements for light tasks, while achieving stringent emissions/noise limits.
   
• In India, demand is soaring for high-capacity manual and automated (AMT) transmissions (9-speed, 12-speed) for heavy trucks. OEMs and suppliers are developing and conducting local manufacturing of transmission solutions capable of handling high torque, while also reducing fuel consumption and improving long-haul reliability.
   
• In June 2025, ZF India finalized a contract to supply its EcoMid and EcoTronic Mid 9-speed manual and automatic manual transmission (AMT) to a prominent Indian commercial vehicle OEM. This agreement reports the high-torque 1300-Nm segment of the market, allowing ZF to cement its partnerships and strengthen its presence in India's rapidly changing heavy-duty mobility market.
   

The off-highway equipment transmission component market in China is expected to experience significant growth from CAGR of 6.5 % from 2025 to 2034, since real-time transmission monitoring, predictive maintenance, and fleet optimization are improving efficiency and reducing downtime.
 

• The trend of high-tech construction equipment is still growing rapidly, as China keeps urbanizing, megaprojects in infrastructure like smart cities and transport systems, and clean energy developments. Such a requirement has further led to the use of effective transmission systems and hybrid drive lines in heavy duty equipment to cope with the varying fuel economy and emission requirements.
   
• Chinese OEMs such as XCMG, LiuGong, and Zoomlion are exporting off-highway equipment at increasing rates. To compete internationally, they are adopting quality transmission systems, hybrid technologies, and digitalized solutions. Collaborating with international suppliers will enhance these OEMs' competitiveness in newly developing and developed markets.
   
• The government of China provides subsidies and incentives for electrified and hybrid off-highway equipment, incentivizing research and development in battery systems, electric vehicle (EV) drivetrains, and hybrid transmissions. Such government policies facilitate the shift to low-emission equipment and give a growth prospective to transmission parts, both local and overseas-based suppliers.
   
• During the Auto Shanghai 2025, ZF demonstrated its interest in China, presenting such innovations as advanced EVs, high-tech chassis, EV axles, and hybrid transmission in commercial vehicles. The company also focused on software integration, steer by wire and brake by wire technology, and focuses on local OEMs in China to promote electrification and automation in markets of off-highway and commercial vehicles in China.
   

The off-highway equipment transmission component market in Latin America is expected to experience significant growth from 2025 to 2034. The region’s vast agricultural base, particularly in Brazil and Argentina, is fueling demand for tractors and harvesters equipped with advanced transmissions.
 

• Significant expenditures on infrastructure - roads, ports, urban mobility - and growth in mining (especially copper and lithium in the Andes) are driving demand for heavy-duty off-highway equipment. There is increasing demands for transmission systems that can deliver high torque in harsh conditions and can be regarded as reliable when under stress.
   
• Latin America is experiencing growth in electric and hybrid-powered equipment for construction use this is primarily the result of increased environmental regulations and priorities, as well as the objective to save money. Electric excavators, loaders, and forklifts are swiftly becoming more accepted already in Brazil and Mexico, supported primarily by government incentives and pilot programs.
   
• In April of 2025, AGCO opened a Reman Transmission Center of Excellence in Jundiaí, Brazil to remanufacture mechanical transmissions for Massey Ferguson and Valtra tractors. This will reduce lead times, save money (~30% cost savings) and the support sustainability through local remanufacturing. Ultimately, it will enhance AGCO's aftermarket, service and product offerings in Latin America.
   
• Stringent emissions and non-road mobile machinery (NRMM) regulations are pushing fleet replacement across LATAM. Old equipment with ICE drivetrains is being replaced with cleaner or hybrid engine variability. More stringent policies in countries like Brazil, Peru and Chile have also propelled innovation to improve the transmission, along with driving adoption of cleaner powertrains.
   

The off-highway equipment transmission component market in Middle East and Africa is expected to experience a growth of CAGR 7.6% from 2025 to 2034.
 

• While acceptance is slow in developed regions, markets such as the UAE, Saudi Arabia, and South Africa are experimenting with electric and hybrid off-highway equipment. OEMs are working on energy efficient transmissions and battery integrated drives specifically designed to operate in dry, hot climates that facilitate sustainability efforts, assist in reducing emissions and get those operating in the area accustomed to operating with electric machinery.
   
• Mega infrastructure projects, urban developments, and oil & gas developments throughout the Middle East and Africa region are generating demand for heavy machinery. Equipment manufacturers are providing heavy duty, high-torque transmissions and drivetrain systems that will operate dependably in extreme temperatures, harsh climates, and remote locations and will not lose productive capacity for industrial and construction projects.
   
• The region is also experiencing increase in remanufacturing and aftermarket services. By providing transmission and drivetrain repairs, refurbishments, and parts locally, downtime is reduced, service life is extended, and operating costs are reduced. OEMs have been ramping up investments in regional service centers and training to improve sustainable and profitable equipment ownership.
   
• In September 2025, an important power interconnection project linking the Gulf States and Iraq involves building a 435-kilometer, 400 kV transmission line with a capacity of 1 GW. The upgraded infrastructure facilitates a more secure energy environment, more reliable delivery of electricity, and the effective operation and advancement of heavy duty off-highway machinery, driving industrial and construction development.
   

Off-Highway Equipment Transmission Component Market Share

• The top 7 companies in the off-highway equipment transmission component industry are Allison Transmission, Bosch Rexroth, Caterpillar, Eaton Corporation, John Deere, Komatsu, and ZF Friedrichshafen contributing around 39.3% of the market in 2024.
   
• ZF stands out in advanced drivetrain and transmission systems, with a portfolio including hydrostatic, hydro-mechanical, and electrified assembly. ZF's strategy emphasizes research and development in Europe, Asia, and North America to drive innovation for off-highway applications and to partner with original equipment manufacturers (OEM) to provide integrated and high-efficiency transmission systems for construction, agriculture, and mining equipment.
   
• John Deere has formed a business around end-to-end off-highway differentiated solutions, embedding high-performance transmissions into tractors, harvesters, and construction equipment. Using strong local manufacturing in the US, Europe, and Asia, Deere will focus on building durable and fuel-efficient systems, aided by allowing monitoring of the overall speed of the drivetrain through digital means, and hybrid powertrains to increase reliability and productivity in various operating environments meeting the needs of agriculture and construction.
   
• Caterpillar produces heavy-duty mechanical and hydrostatic transmissions for construction and mining equipment by capitalizing on a global footprint. Caterpillar's strategy includes local manufacturing in important regions, R&D for automation and electrification, and nothing less than seamless integration with engine and control systems to increase efficiency, durability, and overall performance in harsh off-highway conditions.
   
• Komatsu prioritizes innovation in hydrostatic, electro-hydraulic, and hybrid transmission systems for applications in construction, mining, and forestry machines. With a global shop and immense presence across Asia-Pacific, the company believes its focus on reliability, energy efficiency, and integration with telematics and autonomous machinery will deliver better productivity while reducing cost-structure for users in the long run.
   
• Eaton's key business involves drivetrain and transmission components for off-highway vehicles and offers solutions for automated mechanical, hydrostatic, and hybrid vehicles. Its business model emphasizes durability and modular design to allow customers to easily customize equipment for a vehicle's application, including agricultural, construction, and industrial machines. Eaton also builds capacity to serve customers around the world with local partnerships and service networks to enhance aftermarket capabilities.
   

Off-Highway Equipment Transmission Component Market Companies

Major players operating in the off-highway equipment transmission component industry are:
 

• Allison Transmission
• BorgWarner
• Bosch Rexroth 
• Caterpillar
• CNH Industrial 
• Eaton Corporation
• John Deere
• Komatsu
• ZF Friedrichshafen

• ZF Friedrichshafen promotes high-performance off-highway transmissions with a focus on electrified and hybrid powertrains. Its APAC emphasizes localized research and development (R&D), modular systems, and integration of software to help OEMs deploy energy-efficient, high-torque solutions in construction, agriculture, and mining machinery while also leveraging reduced lifecycle costs.
   
• John Deere is using precision transmission in agricultural and construction equipment and utilizing smart hydraulics, telematics, and hybrid drive trains to enhance efficiency and uptime. Also, the regional manufacturing of Deere in the APAC and wide network of dealers in the region allow tailoring of equipment to satisfy the requirements of various climates and farming or construction operations.
   
• Caterpillar is a manufacturer of rugged and robust off-highway transmission systems that can endure extreme workloads. Caterpillar's strategy in APAC emphasizes automation-enabled transmissions, hybrid-ready drivetrains, and service-focused operations that operate equipment reliability, fuel savings and throughput in mining and large-scale construction work.
   
• Komatsu is focused on flexible relationship efficient transmission systems/technologies - electro-hydraulic and hydrostatic systems. This technology intersects with autonomous machines and fleet management software to help operators in the APAC region improve equipment usage, reduce fuel consumption, and extend component life in a variety of situations, including mining, construction, and forestry.
   

Off-Highway Equipment Transmission Component Industry News

• During the bauma 2025 exposition, John Deere showcased its SmartDetect and SmartWeigh technologies for construction equipment and off-highway machinery. These products will offer a heightened level of awareness and safety on the jobsite and improve jobsite efficiency by monitoring loads in real-time providing predictive alerts and offering an easier way to handle materials, thereby allowing operators to maximize utilization, minimize downtime, and increase overall productivity.
   
• In May 2025, CNH Industrial announced a new strategic business plan with the goal of not only integrating advanced technology into traditional farming equipment to drive increased productivity without increasing resource use but has set a goal of expanding agricultural operating-profit margins to 16%-17% by the year 2030.
   
• During bauma 2025, Bosch Rexroth showcase scaled digital solution modules of electrified off-highway-trucks. The solutions will focus on helping to maximize productivity, efficiency, and safety in construction and mining equipment by use of intelligent controls, energy-saving drivetrains and real-time digital monitoring systems. This enables OEMs and operators all over to maximize efficiency and reduce maintenance.
   
• Two new wheel loaders were introduced by Komatsu at bauma 2025. The WA475-11, in a class between 17.8 and 25.5 tonnes, and the WA485-11, in a class between 19.1 and 26.9 tons. WA475-11 and WA485-11 house high torque engines and HMT transmissions to deliver impressive fuel efficiency, payload capacities, and compliance with EU Stage V emissions regulations. They are reflective of Komatsu's performance, sustainability initiatives, and advances in off-highway equipment technology.
   
• In September 2024, Eaton launched the Endurant HD V transmission to their product offering. Intended for vocational trucks operating on difficult terrain, the Endurant HD V transmission demonstrates Eaton's commitment to expanding product offerings by providing performance, reliability, and adaptability to varied duty cycles for fleet operators working in heavy conditions, which also positions Eaton to leverage the growth in the heavy-duty transmission market.
   

The off-highway equipment transmission component market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipments (Units) from 2021 to 2034, for the following segments:

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Market, By Component

• Gears & Gear Systems
• Clutches & Brakes
• Torque Converters
• Hydraulic Components
• Control Systems
• Power Transfer Components

Market, By Propulsion

• ICE
• Electric
  • Battery electric vehicles (BEVs)
  • Hybrid electric vehicles (HEVs)
  • Plug-in hybrid electric vehicles (PHEVs) 
• Hybrid

Market, By Vehicle

• Construction Equipment
  • Excavators & Backhoes
  • Bulldozers & Scrapers
  • Wheel Loaders & Skid Steers
  • Motor Graders & Compactors 
• Agricultural Machinery
  • Tractors & Utility Vehicles
  • Combines & Harvesters
  • Sprayers & Applicators
  • Tillage & Planting Equipment
• Mining Equipment
  • Haul Trucks & Dump Trucks
  • Draglines & Shovels
  • Underground Equipment
  • Crushing & Processing Equipment
• Forestry Equipment
  • Harvesters & Processors
  • Forwarders & Skidders
  • Feller Bunchers
  • Log Loaders & Delimbers
• Material Handling Equipment
  • Forklifts & Telehandlers
  • Rough Terrain Cranes
  • Aerial Work Platforms
  • Container Handlers

Market, By Technology

• Mechanical Transmission Systems
• Hydrostatic & Hydro-mechanical Systems
• Hybrid & Electrified Powertrains
• Control & Actuation Technologies

Market, By Sales channel

• OEM
• Aftermarket  

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Poland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Vietnam
  • Singapore
  • Indonesia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE