INDUSTRIAL GEARBOX MARKET ANALYSIS

The global industrial gearbox market size was valued at US$ 28.04 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.4% from 2023 to 2030. The global industrial gearbox market is expected to grow at a significant rate during the forecast period. This growth is primarily driven by the rising adoption of industrial automation in various industrial sectors, technical advancements in robotics and industrial automation, and increasing investments in renewable energy generation. The growing focus on reducing carbon emissions and climate change is another factor driving the market growth.

Global Industrial Gearbox Market: Regional Insights

North America among other regions is expected account for major share in the global industrial gearbox market over the forecast period. This can be attributed to robust presence of various industries in the region including railways, manufacturing, power generation, food and beverages, mining and others. Manufacturing industry in the region continues to show growth, as the revenue generated by the industry in the U.S. in 2020 accounted for nearly 10.8% of the economy of this country. Thus, the demand for industrial gearboxes is expected to increase in the coming years. This is expected to drive the market growth in the near future.

Europe is also anticipated to gain substantial growth in the global industrial gearbox market during the forecast period. This is due to presence of strong manufacturing industry in the countries of this region such as Germany. Moreover, the presence of large automotive industry in the region is also one of the region for high demand of industrial gearboxes. The region is also witnessing increasing demand for electric vehicle manufacturing facilities. These factors are in turn likely to support the market growth in the coming years.

Figure 1: Global Industrial Gearbox Market Share (%), By Region, 2022

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Global Industrial Gearbox Market Drivers:

Rise in automation in manufacturing industries to drive the market growth

Industrial automation takes control of any machinery or equipment through technology, which results in enhanced production output. This further reduces the need for workforce and labor expenses. Several industries such as food processing, agriculture machinery, and automobile are increasingly adoption automation in manufacturing. The companies are adopting advanced technologies such as robots and AI for managing the manufacturing processes. Thus, the demand for industrial gearboxes is increasing for these automated machineries. This in turn is expected to drive growth of the global industrial gearbox market over the forecast period.

Growing industrialization around the world to boost the market growth

The industrialization is increasing in developed and emerging countries, which in turn is driving the demand for industrial gearboxes. The automobile industry is expanding all over the world. According to the Mechanical Engineering Industry Association, in 2017, the market revenue for digitalization industrial gearboxes and comprehensive mechanical technology in Germany accounted for nearly US$ 16.35 billion. Thus, the increasing robotization in industries is expected to drive growth of the global industrial gearbox market over the forecast period.

Global Industrial Gearbox Market Opportunities:

Rise in demand for energy-efficient gearboxes to create growth opportunities in the global industrial gearbox market over the forecast period. Companies across several industries are looking to cut down consumption of energy in order to reduce carbon footprint and operation costs. The use of high-efficiency gears in several cases cuts down the value of drivers and their operations. Thus, gears can significantly impact the final performance and reliability of equipment, consumers all over the world are adopting technically advanced products. This factor in turn is driving the investment in R&D to cater the demand for efficient gearboxes. Thus, the market is likely to witness several growth opportunities in the near future.

Increasing robotics applications are likely to create lucrative environment for growth opportunities in the global industrial gearbox market over the forecast period. The robotics industry is growing rapidly due to which the industrial gearbox business is flourishing. Gearboxes are used for managing the speed and torque in robotic arms with precision. Thus, integration of robotics is increasing into industrial processes. This factor in turn is creating multiple opportunities in the market.

Global Industrial Gearbox Market Trends:

Helical gearbox segment is gaining traction in the market

Helical gearboxes offer smooth operation and high thrust outputs. The teeth on a helical gear, in a helical gearbox cut an angle to the face of the gear. When these teeth start engaging, the contact becomes gradual, starting off at the end of the tooth and maintains contact when the gear is rotating in full engagement. The result is smooth operation and better thrust output. The use of these gears is increasing in automobile transmission applications. This in turn is likely to support growth of the global industrial gearbox market over the forecast future.

Market players introducing novel products is another trend in the market

Key players in the market are increasing launching new products to gain a competitive edge in the market. For instance, in October 2020, Nanjing High Accurate Drive Equipment Manufacturing Group Co. Ltd. announced the launch of its WinGearTM brand 3.xMW main gearbox platform at the China Wind Power 2020 exhibition. Launch of such technologically advanced products is driving the demand for the global industrial gearbox market.

Global Industrial Gearbox Market Restraints:

Slowdown in economic and industrial activities to hinder the market pace

Due to the outbreak of COVID-19 pandemic, the global economy was witnessing slowdown in 2020. It was found to be the slowest pace after the global financial crisis of 2008. During this period, all industrial activities were disrupted. The production and demand for industrial gearboxes among several other products declined significantly. This in turn negatively impacted the market growth. Thus, such slowdown in industrial as well as economic activities is expected to hinder growth of the global industrial gearbox market over the forecast period.

High initial cost and complexity of industrial gearboxes to limit the market growth

The initial cost required for purchasing and setting up industrial gearboxes is high. For some of small and medium-scaled manufacturers, this can be expensive. This in turn hinders the adoption of industrial gearboxes in developing and underdeveloped regions. Moreover, the difficulty of manufacturing these gears due to their need for special equipment which further adds into the cost also hinders adoption of industrial gearboxes. This in turn is anticipated to hinder growth of the global industrial gearbox market over the forecast period.

Figure 2: Global Industrial Gearbox Market Share (%), By Type Segment, 2022

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Global Industrial Gearbox Market Segmentation:

The global industrial gearbox market report is segmented into Type and Application.

Based on Type, the market is segmented into Worm Gearbox, Helical Gearbox, Bevel Helical Gearbox, Planetary Gearbox, and Other Types. Out of which, Worm Gearbox is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of worm gearboxes. These gearboxes are low-cost solutions that help produce high torque from relatively small electric motor. These gearboxes are majorly used in packaging and manufacturing applications. Thus, with increasing growth of these sectors, the demand for worm gearboxes is growing. This in turn is driving growth of this segment.

Helical Gearbox segment is also expected to witness significant growth in the near future and this is owing to the growing use of helical gearboxes in various industries including automobile, fertilizer, power, rolling mills, and port industries. The use of these gearboxes is high in these sectors due to their high efficiency as well as high thrust generating capabilities. With these features, it offers smooth operations. The use of helical gearbox is high in automobile transmissions field as it can generate large amount of thrusts.

Based on Application, the market is segmented into Power Industry, Steel Industry, Mines and Minerals Industry, Wastewater Treatment Industry, Manufacturing Industry, and Other Applications. Out of which, Power Industry is expected to dominate the global market over the forecast period and this is attributed to the growing applications of gearboxes in power industry for power transmission and generation. Gearbox is an important part of a large-scale power plant that performs crucial functions such as driving large coal crushers and pulverisers, air preheaters, cooling tower fans, conveying systems, and turbine drives. Due to the efficient and reliable operation of these gear units, their demand is increasing in power industry. This in turn is expected to support growth of this segment.

Steel segment is also expected to witness significant growth in the near future and this is owing to the increasing adoption of industrial gearboxes in steel industry. Gearboxes utilized in this industry are crane duty gearboxes, high torque planetary gearboxes, helical and bevel gears, and worm reduction gearboxes. These gearboxes are used for improving the processing and production lines of the steel industry.

Global Industrial Gearbox Market: Key Developments

In June 2021, NGC announced the launch of a range of novel products for mining industry including MHB standard gearboxes, MPT Tower Mill gearboxes, MPG Roller Machine gearboxes, and MHS special gearboxes for stirrers.

In April 2020, Lenze SE, announced the plans to expand into Western Australia with opening of a new facility in Tonkin Highway Industrial Estate in Bayswater. The novel premises will be the only OEM facility on the West Coast with a 1.5 MW test bench that can conduct test for whole drive systems up to a voltage of 6.6 kV.

In August 2021, NORD opened a new warehouse of automated small parts. The company also announced that this new warehouse will be providing more than 70,000 storage spaces, which makes it a biggest automated warehouse system in the NORD DRIVESYSTEMS Group.

In August 2020, NORD announced to have provided supply of eight SK7207V parallel gear units and couplings having speed ration of 14.20:1 and 1,480 rpm, and offer a 10,078 Nm output torque to Lodige, a food manufacturer in West Africa.

Global Industrial Gearbox Market: Key Companies Insights

The global industrial gearbox market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global industrial gearbox market are Nanjing High Accurate Drive Equipment Manufacturing Group Co. Ltd., Lenze SE, Flender Ltd, Nord Drivesystems Pvt Ltd., Bosch Rexroth AG, Zollern GmbH & Co. KG, INGECO GEARS Pvt. Ltd, Kngear, Essential Power Transmission Pvt. Ltd., Bonfiglioli Drives Co. Ltd., and Elecon Engineering Company Limited

*Definition: An industrial gearbox is a device that transfers mechanical energy from one system to another. It is used in a variety of applications including agriculture, mining, marine, metals and other heavy industries. It is made out of durable and strong materials to withstand daily operations for extended periods of time.