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The gear manufacturing market size is estimated to grow by USD 127.7 billion at a CAGR of 8.08% between 2023 and 2028. The growth of the market depends on several factors, such as the adoption of industrial automation, growing investments in renewable energy, and the resurgence of investments in the oil and gas sector. The increasing adoption of industrial automation enhances efficiency and productivity, driving demand for advanced technologies and equipment. Growing investments in renewable energy reflect a global shift towards sustainable and clean energy sources, stimulating market expansion in related sectors. Additionally, the resurgence of investments in the oil and gas sector indicates a renewed focus on traditional energy resources, further boosting market growth by increasing demand for specialized equipment and services. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
Market Forecast 2024-2028
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The market is vital for various industries, including oilfield companies, oil companies, and the mining and construction industries. Amid the pandemic, adherence to social distancing and sanitization measures is crucial for employees involved in production activities. Key products like rack and pinion gear and cylindrical gear are essential for smooth power transmission in machine components. Advanced processes like honing ensure precision in automotive applications, aerospace applications, and medical products. Leading companies such as Timken and Ringfeder are focusing on energy-efficient gears to meet sustainability goals. The market's growth is driven by the demand for reliable and efficient gears across diverse sectors, ensuring optimal performance and longevity of machinery.
Over the past few decades, technological advancements have driven automation, leading to the widespread adoption of robots and industrial automation. Globally, automation is increasingly utilized across all industrial sectors, with particularly high adoption rates in manufacturing. This trend is expected to become a significant driver for this market. Many companies are experiencing challenges such as shrinking profit margins and operational difficulties due to rising labor costs and manufacturing overcapacity in certain regions. Consequently, manufacturers are increasingly turning to automation to replace manual labor.
Automation not only helps reduce operational costs but also enhances work efficiency while minimizing losses from human errors associated with manual handling and processing. The growing mechanization of manual tasks in industries is anticipated to fuel the demand for manufacturing during the forecast period. This trend is supported by market research and growth analysis, indicating the increasing adoption of automation and its impact on market trends. Furthermore, market growth and forecasting suggest a positive outlook for the gear manufacturing sector as automation continues to transform industrial processes.
Advancements in interconnected electronics and information relay technologies are facilitating the transition of control systems in gear manufacturing from analog to digital communication. The incorporation of IIoT technologies into gearboxes is also expected to increase alongside the expansion of industrial automation, commonly referred to as Industry 4.0. IIoT enables the comprehensive collection of data from the entire process system, including the utilized in gearboxes. The data gathered by sensors is transmitted to local machine controllers and manufacturing execution systems (MES).
This integration allows operators to analyze equipment conditions and performance and implement predictive maintenance measures, thereby preventing unexpected failures and reducing downtime. Currently, the application of IIoT in gear and its systems is primarily limited to high-performance and critical applications, but it is projected to drive this market forward with the adoption of Industry 4.0 practices during the forecast period. This trend is supported by market growth analysis and emphasizes the importance of innovative gear materials and gear production technology in enabling the transition toward digitally-enabled gear manufacturing processes.
Due to the vast manufacturing sector, China has a huge potential for growth in this global market. China is considered a global hub for manufacturing and produces everything from vehicle and aircraft components to industrial machines and electronics. Nevertheless, the slowdown in the Chinese economy is anticipated to restrict the growth of the market growth. As global exports have been declining, the Chinese economy and its manufacturing sector are facing a slowdown, and the manufacturing industry is experiencing low foreign investments.
In addition, the US government is debating several trade reforms that may limit the import of manufactured goods into the country. Although China is expected to remain one of the leading markets. Such factors may adversely influence the demand for their manufacturing from end-user industries, thereby hindering the growth of the market during the forecast period.
The worm gear segment is estimated to witness significant growth during the forecast period. A worm gear has a shaft with a spiral thread that connects with a toothed wheel and moves it and it helps in changing the rotational movement at 90 degrees. They are generally made from steel and brass materials.
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The worm gear segment was the largest and was valued at USD 110.90 billion in 2018. Worm gears can use high reduction ratios, which results in higher torque multiplication. Also, this helps in lowering speed and managing the speed at low and medium levels. The reduction ratio is based on the number of gear teeth, which results in a more compact structure. Worm gears are self-locking, which makes them ideal for hoisting and lifting applications. Such factors are expected to fuel the market segment, which in turn drives the market growth during the forecast period.
Based on end-user, the market has been segmented into the oil and gas industry, power industry, automotive, spur gear and others. The oil and gas industry segment will account for the largest share of this segment.?Heavy-duty industrial gears are used across the oil and gas value chain and all chemical process industries. Moreover, increasing investments in the exploration of crude oil by oil manufacturers and the ongoing increase in the production of crude oil will boost the market. For instance, in August 2021, Indian Oil Corp. Ltd announced its plan to invest USD 254 billion over the next five years to go up to 25 million tons per annum (MPTA), resulting in the expansion of a current capacity of 106.7 MPTA. Therefore, such factors are expected to fuel the growth of the market in the oil and gas industry during the forecast period.
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APAC is estimated to contribute 40% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In APAC, particularly China and India, have been adding substantial wind energy capacity for the last few years, which is a primary source of growth for the market. Also, the region is home to some of the largest oil and gas-consuming and chemical and industrial manufacturing countries, which contribute to its significant share in the market and the region is the world's largest automotive manufacturing hub.
In addition, the demand for manufacturing varies widely according to the country as the region includes both developed and developing countries. The development of water and wastewater treatment facilities in countries such as China, India, Indonesia, and Vietnam will also be a major source of growth for the market. These countries severely lack water treatment infrastructure and are anticipated to invest significant sums in such infrastructure development activities, thereby driving the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Emerson Electric Co - The company offers products such as gearboxes for rotary mowers and splitter gearboxes.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Siemens AG, Emerson Electric Co., Johnson Electric Holdings Ltd., DB Santasalo Sarl, ZF Friedrichshafen AG, SEW-EURODRIVE GmbH and Co KG, Sumitomo Heavy Industries Ltd., Comer Industries Spa, WEG Equipamentos Eletricos S.A., Rotork Plc, Regal Rexnord Corp., Bondioli and Pavesi Spa, Bonfiglioli Riduttori Spa, Curtis Machine Co. Inc., Dana Inc., FLSmidth and Co. AS, Eaton Corp. Plc, Elecon Engineering Co. Ltd., Bharat Gears Ltd., and KLINGELNBERG GmbH
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is essential for the energy sector, with companies like Moventas producing wind turbine gearboxes. Advanced testing and verification services ensure spur gears, helical gears, and other gear units meet high standards for operational life. In the automotive sector, gears are critical for drive-trains in passenger vehicles and commercial vehicles. The gear manufacturing process involves designing and engineering, focusing on gear specifications such as tooth profile, module, and pitch diameter. Techniques like hobbing, shaping, milling, grinding, and finishing processes are used to enhance strength and durability. Gear inspection methods, including gear rolling tests, backlash measurements, and tooth contact pattern analysis, ensure dimensional accuracy. High-precision gears are vital for sectors like aerospace, defense, medical equipment, and heavy-duty machinery.
Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.08% |
Market growth 2024-2028 |
USD 127.7 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.33 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 40% |
Key countries |
China, US, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bharat Gears Ltd., Bondioli and Pavesi Spa, Bonfiglioli Riduttori Spa, Comer Industries Spa, Curtis Machine Co. Inc., Dana Inc., DB Santasalo Sarl, Eaton Corp. Plc, Elecon Engineering Co. Ltd., Emerson Electric Co., FLSmidth and Co. AS, Johnson Electric Holdings Ltd., KLINGELNBERG GmbH, Regal Rexnord Corp., Rotork Plc, SEW-EURODRIVE GmbH and Co KG, Siemens AG, Sumitomo Heavy Industries Ltd., WEG S.A, and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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