The global industrial gearbox market is expected to grow at a CAGR of close to 4% during the period 2018-2022, according to a new market research study by Technavio.
The report presents a comprehensive research of the global industrial gearbox market by product (standard gearbox and precision gearbox) and by end-user (power generation, oil and gas, and general machinery). The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geographies such as APAC, the Americas, and EMEA.
The report notes a few market trends:
Decline in the cost of wind-turbine gearboxes
The growth in wind-power generation capacity over the past few decades has been amplified by the decline in the cost of the components used in turbines, including the cost of gearboxes.
The cost of wind-turbine gearboxes has decreased considerably over the years. This is because of the enhancements in designs, optimization in raw material sourcing, entry of new players into the market, and larger economies of scale. The average cost of a gearbox unit has been declining due to the improvements in gearbox technology and reduction in manufacturing costs.
The growing trend of vertical integration of gearbox manufacturing by wind turbine suppliers is also assisting the cause.
Growing competition from direct-drive systems
Direct-drive systems have emerged as an ideal replacement for geared drive systems in several end-use applications over the past decade. The characteristics of direct drive systems make them less complex in design and easier to operate and maintain. This is a major factor driving the adoption of these systems in heavy-duty applications including wind power and industrial automation.
Adoption of industrial automation
The growth in technology over the past few decades is driving advances in automation, encouraging the adoption of robots and industrial automation. The use of automation across all industrial sectors across the globe is increasing.
The rate of adoption of automation is particularly high in the manufacturing sector. This is anticipated to become a driving force for the industrial gearbox market during the forecast period.
Robots and automation equipment are typically used in high-speed, repetitive tasks in manufacturing and other industries. The need to manufacture robots, which have a higher level of sophistication and scope of application, has led to research work on the development of high precision gearboxes.
According to a senior analyst at Technavio for engineering tools research: “A major factor contributing to the increasing adoption of automation is the rise in labor costs and the focus on abolishing production inefficiencies and reducing the costs. The cost of labor has been steadily increasing worldwide because of the economic growth in most countries. The economic growth in developing countries is higher than that in developed countries.”
Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more. Request a free report sample here.
Filed Under: Gearboxes, News