PRECISION GEARBOX MARKET ANALYSIS

The global precision gearbox market size was valued at US$ 2,632.5 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 9.1% from 2023 to 2030. Increasing demand for automation from various industries including military & aerospace, food & beverage, machine tools, material handling, packaging and robotics is expected to drive the market of precision gearbox. The automation process involves replacement of manual labor with automated machines which reduces operational costs and increase total output production. Rising investments in the regional manufacturing landscape are also projected to fuel the demand of this machinery.

Global Precision Gearbox Market: Regional Insights

North America is anticipated to account for major share in the global precision gearbox market over the forecast period. The growth of this region is attributed to factors such as, increasing investment in adoption of advanced material handling equipment in industries such as power generation, cement, and steel. Moreover, growing military and aerospace industry spendings to adopt advanced technology systems, smart munitions, as well as motion control systems, is also driving growth of the global precision gearbox market in North America region.

Asia Pacific is also expected to gain major growth in the global precision gearbox market over the forecast period, and this is owing to widespread adoption of precision gearboxes in industries such as metallurgy, and cement across major developing countries in the region. The increasing consumption of processed and packaged food in the region is also expected to augment growth of the market in Asia Pacific.

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

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Global Precision Gearbox Market Drivers:

Increasing demand from robotics applications to drive growth of the market

The demand for installation of robots is increasing due to rise in implementation of automation technology in the production process. Growing use of robots in the industrial processes enabling the human employees to increase focus on the intellectually demanding projects. As a result the demand for precision gearboxes is increasing in robotics applications. This in turn is expected to drive growth of the global precision gearbox market over the forecast period.

Advantages of using precision gearbox to fuel growth of the market

The use of precision gearboxes is increasing across several industries including sugar, cement, rubber, and paper in order to complete their processes. The focus of gearbox manufacturers is increasing on development of technological advanced products to help minimize cost of energy, and enable companies to efficiently serve the industrial processes. Thus, industrial gearboxes are offering higher efficiency, due to which demand for this technology is increasing. These factors in turn are anticipated to propel growth of the global precision gearbox market over the forecast period.

Global Precision Gearbox Market Opportunities:

Growing demand for direct-drive actuators in robotics is expected to bring multiple opportunities in the global precision gearbox market over the forecast period. Due to the benefits of precision gearboxes such as low system complexity, lower maintenance requirement, and cost efficiency, the demand for direct-drive actuators in robotics is increasing for industrial and non-factory use is increasing rapidly. New properties used in actuators such as structural-magnetic synergy, amplified magnetics, and thermodynamic anomaly that allow the robotic design operate without gears. Thus, this factor is likely to create opportunities in the global precision gearbox market over the forecast period.

Advanced optimization to create growth opportunities in the global precision gearbox market over the forecast period. The focus of companies on using the joint efforts of humans and robots is increasing. Due to this, collaborative robots, a line of niche-specific machines is developed to amplify the productivity of manufacturing organizations. This in turn is creating demand for precision gearboxes. Thus, advanced optimization and improvement is likely to offer business opportunities in the market.

Global Precision Gearbox Market Trends:

Growing use of automation and robotics in emerging countries is a recent trend

According to Coherent Market Insights, robotics applications accounted for nearly 30% of the precision gearbox market in 2020. Increasing use of artificial joints and limbs for robots used in manufacturing and humanoid robots for achieving precise movements for different service and industrial operations is likely to drive the demand for precision gearboxes. Thus, this trend is likely to continue in the global precision gearbox market over the forecast period.

Increasing mergers and acquisition among market players is another trend

Major players in the global precision gearbox market are increasingly adopting growth strategies such as mergers and acquisitions to strengthen their product offerings. For instance, in March 2019, Nidec Corporation announced the acquisition of DESCH Antriebstechnik GmbH & Co. KG and its group companies. With this acquisition, the position of Nidec-Shimpo Corporation has been strengthen in the sales and manufacturing of precision reduction gears in the market of Europe. This trend is anticipated to continue in the global precision gearbox market over the forecast period.

Global Precision Gearbox Market Restraints:

Gearbox failures to hinder the market growth

Failures in gearboxes can occur due to unpredictable system interactions or due to consequences of the operation modes. Mostly these failures occur due to the bearings instead of the gears. These gearboxes face major challenges such as misalignment, resonant vibration occurring due to elastic deflections, transient thermal expansion effects in the starting-up, sealing or breathing arrangements, and external contamination due to orientation. Thus, this factor is expected to hinder growth of the global precision gearbox market over the forecast period.

Availability of alternatives to hamper the market growth

A variable frequency drive can be used as an alternative to precision gearboxes. This frequency drive can vary the power supplied for matching the energy needs of the driven equipment. It further saves optimizes the consumption of energy and saves the energy. Thus, use of variable frequency drive as an alternative is expected to hamper growth of the global precision gearbox market over the forecast period.

Figure 2: Global Precision Gearbox Market Share (%), By Product, 2022

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Global Precision Gearbox Market Segmentation:

The global precision gearbox market report is segmented into Product and Application.

Based on Product, the market is segmented into Planetary, Harmonic, and Cycloidal. Out of which, Planetary is expected to dominate the global market over the forecast period and this is attributed to the growing applications of planetary precision gearboxes due to their lucrative properties. Planetary precision gearboxes are utilized in equipment including servosystems, conveyers, wheel drives, and coil tubing injectors. The lucrative properties of these gearboxes include high power density, and high efficiency among others. Thus, demand for planetary precision gearbox is increasing rapidly, and this in turn driving growth of this segment.

Harmonic segment is also expected to witness significant growth in the near future and this is owing to the widespread use of harmonic precision gearboxes. These gearboxes are used across various industries in applications like electronic equipment and machine tools. The demand for harmonic precision gearboxes is increasing in semiconductor devices and robots, owing to their various benefits. This is further driving growth of the segment in the global precision gearbox market.

Based on Military & Aerospace, the market is segmented into Military & Aerospace; Food, Beverage, & Tobacco, Machine Tools Material Handling Packaging, Robotics, Medical, and Others. Out of which, Military & Aerospace is expected to dominate the global market over the forecast period and this is attributed to the high demand for precision gearboxes in aerospace and military applications. These devices help boost precision levels for various equipment such as infrared focus & zoom systems, electro-optical targeting systems and more.

Robotics segment is also expected to witness significant growth in the near future and this is owing to the growing use in robotics for enabling precise movement in various end-use industries. Moreover, many companies are focused on offering customization for manufacturers of robotic system for their use in various industrial applications. This is in turn driving the use of precision gearboxes in the industry, which is further likely to boost growth of the segment.

Global Precision Gearbox Market: Key Developments

In January 2022, Schaeffler acquired Melior Motion GmbH, a precision gearbox supplier for robotics and other applications. With this acquisition, Schaeffler expanded its robotics offerings.

In February 2022, Nabtesco, a manufacturer of robotic gearbox announced to invest in a third manufacturing plant of precision gearboxes to increase Company’s production of precision gearboxes to two million per year by 2026.

In September 2020, Neugart GmbH started a novel subsidiary Neugart France S.A.S. This new subsidiary is expected to strengthen the portfolio of precision planetary pinion gearboxes of the company in the local market in France.

In March 2020, Sumitomo Drive Technologies and R.L. Matus & Associates announced partnership, and with this partnership, Sumitomo can strengthen its presence both technically and commercially in the Southeastern states across the U.S.

Global Precision Gearbox Market: Key Companies Insights

The global precision 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 precision gearbox market are Designatronics Inc., Grudel Group AG, igus GmbH, Harmonic Drive LLC, Designatronics Inc., Stöber Antriebstechnik GmbH and Co. KG, EGT Eppinger Getriebe Technologie GmbH, Cone Drive, Framo Morat, Apex Dynamics Inc., ATLANTA Drive Systems, Inc., GAM ENTERPRISES, INC., HIWIN Corporation, Wilhelm Vogel GmbH, DieQua Corporation, Motus Labs, Onvio LLC, and Georgii Kobold GmbH & Co. KG

*Definition: Precision gearbox is an industrial machine used to reduce the speed of the conveyor belt in food & pharmaceutical industry and maintain a standard rate of production. It helps in avoiding wastage of raw materials and increase the efficiency of the machine by decreasing the energy consumption. Rapidly developing aerospace sector is expected to drive the market of precision gearbox over the forecast period.