Market Challenges And Opportunities

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 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.