Industrial Gearbox Market - Global Outlook & Forecast 2023-2028

MARKET OVERVIEW

The industrial gearbox market is expected to grow at a CAGR of 4.22%, reaching USD 38.44 billion by 2028 from USD 30 billion in 2022 during the forecast period. An emerging trend in the industrial gearbox market is increasing the requirement for efficient energy gearbox and clean energy sources and rising automation in manufacturing technology, which are the major factors driving revenue growth. Industrial gearboxes are significantly used in various power plants, including wind turbines, hydroelectric power plants, and thermal power plants, for transmission of power from turbine or generator to electric grids, which ensures optimal performance and reliability, in recent years, there has been a rising demand for energy worldwide which in turn is significantly rising the need for efficient power generation distribution systems.

The growth and development of the global industrial gearbox market are being propelled by various factors. One significant driver is the rapid adoption of Industry 4.0 practices, coupled with the integration of cutting-edge technologies like the Internet of Things (IoT) and artificial intelligence (AI). This convergence of advanced technologies enhances the efficiency and performance of industrial gearboxes, contributing to market expansion.

Additionally, favorable government regulations aimed at curbing noise pollution play a crucial role in supporting the growth of the global industrial gearbox market. Compliance with these regulations increases demand for noise-reducing and efficient gearbox solutions.

Furthermore, the global surge in construction and building activities directly impacts the market's growth. As infrastructure projects and construction endeavors increase, the demand for industrial gearboxes for various applications rises proportionately.

Overall, the convergence of Industry 4.0 technologies, favorable government regulations, increased construction activities, and the demand for clean energy collectively expand the global industrial gearbox market.

Product innovation is the key trend gaining popularity in the market, as many companies operating in the industrial gearbox market are developing innovative products to strengthen their position in the market. For instance, in October 2020, Sumitomo Drive Technologies, a US-based manufacturer, launched the new Hansen M5CT industrial gearbox. This gearbox is a future-oriented development based on the experience of 3 existing product lines. Additionally, in March 2022, RNWBL, LLC acquired gearbox express for an undisclosed amount. Through this acquisition, the company is focused on providing field service and technology to wind, solar, and broader renewable industries.

MARKET TRENDS & OPPORTUNITIES

Emerging Wind Power Industry

The global industrial gearbox market is experiencing gradual growth due to the increasing emphasis on replacing conventional energy sources with renewable alternatives, particularly in the wind power sector. Over the past two decades, solar and wind power generation, which were once considered costly options, have become highly competitive in terms of cost compared to the construction of new coal or gas plants. Building new wind and solar projects is expected to become more cost-efficient than continuing the operation of existing coal or gas plants. Moreover, an important factor contributing to the market's growth is the ambitious commitment made by the global wind energy council. They aim to achieve substantial offshore wind capacity, targeting 380 GW by 2030 and an impressive 2,000 GW by 2050 worldwide. This commitment will likely open up significant opportunities for gearbox vendors to deploy wind turbines soon.

Increasing Sugar Industry

According to ITC Trade Map, Trade statistics for international business development, in 2021, The import value of Raw Cane Sugar in Indonesia was around USD 2,229,890 thousand, followed by China with an Import value of $ 1,942,598 thousand. While India is the second major exporter of Raw Cane Sugar, the export value was $1,340,793 thousand, followed by Thailand with an export value of $630,065 thousand. Moreover, in November 2021, The Sugar Research Institute of Fiji released a new cane variety for commercial planting in 2022. The variety had a high sugar content leading to better yield, more income for the growers, and increased total sugar production. Hence, the industrial gearbox market is witnessing increased demand, primarily driven by the growing sugar industry. The sugar sector is one of the largest industries extensively utilizing diverse machinery. In this industrial domain, gearboxes play a crucial role and are widely employed in their basic form. By integrating gearboxes into the operations of the sugar industry, the machines function efficiently and cohesively, leading to a positive and successful outcome. The use of gearboxes contributes to the well-organized and smooth functioning of the machines in the sugar industry.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT
The helical industrial gearbox segment dominated the global industrial gearbox market share in 2022. The parallel shafts and winding tooth lines are used in helical industrial gearboxes. They have stronger teeth that seamlessly blend, are quieter, and can transmit larger loads, making them ideal for elevated applications. The modular design and production of helical gearboxes offer various engineering and performance advantages, including a high degree of interchangeability of components and sub-assemblies, resulting in cost-effective construction while maintaining the highest standards of component integrity. Furthermore, the planetary industrial gearbox segment is the fastest-growing segment of the global industry during the forecast period. The planetary industrial gearbox is typically utilized as rotation multipliers. Automatic door openers, motorized wheels, and winches are among the most common applications of planetary industrial gearboxes.

INSIGHTS BY CONFIGURATION
The global industrial gearbox market by configuration segments as parallel axis, angular axis, and others. In 2022, the parallel axis segment dominated the industry and accounted for a revenue share of over 41%. The parallel axis industrial gearbox has a simple mechanism for application in various industries. This type of industrial gearbox is highly efficient and runs at small and medium speeds. The angled axis segment is the fastest-growing segment of the industrial gearbox market. The angled axis industrial gearbox is produced at an angle of 90 degrees. The angled-axis industrial gearbox is widely used in the automotive and mechanical sectors.

INSIGHTS BY END-USER
The power generation end-user segment is dominating the global industrial gearbox market owing to the surge in demand for energy and power and the growing awareness regarding renewable energy, driving the market's growth. The industrial gearbox has many benefits, such as enhanced radial and axial load and reduced positioning time, driving the demand for industrial gearboxes. Moreover, the cement and aggregates market is also significantly contributing to the market owing to cement consumption in the construction industry.

GEOGRAPHICAL ANALYSIS

Asia-Pacific dominated the global industrial gearbox market in 2022. The region is home to several industries, including manufacturing, services, automobiles, and electrical drives, which consequently increase the need for power tools, explicitly cutting tools, which have applications in multiple industries. The APAC region has a strong manufacturing sector due to its easy availability and cheap labor cost. While Japan and South Korea are major manufacturers and exporters of electrical appliances and automobiles, Indonesia and China are leading in textile and oil exports. The factors such as growing demand for energy, rapid industrialization and urbanization, and rising initiatives for infrastructural development are boosting the growth of the industrial gearbox market in the Asia-Pacific region.

VENDOR LANDSCAPE

A diverse range of large and small players characterizes the global industrial gearbox market. These companies actively develop innovative products and invest in research and development initiatives to expand their product offerings. As international players expand their presence in various regions, local manufacturers may face competing challenges. The competition in the industry will primarily revolve around factors such as product durability, lifespan, performance, pricing, and customization options. Moreover, product innovation is gaining popularity in the market as many companies operating in the industrial gearbox market are developing innovative products to strengthen their position in the market.

Key Developments in the Global Industrial Gearbox Market

• In March 2021, Nanjing High Accurate Drive Equipment Manufacturing Group Co. Ltd ordered 656 gearboxes with the PDM460 dual-stage gearbox. This gearbox order is for the Perth subway system in Australia. The PDM460 subway gearbox used for this order was advertised as having strong bearing capacity, good reliability, and other attributes. As a result, it is ideal for varied loads and high tremors and can work in temperatures ranging from -25 to -50 degrees Celsius.
• In October 2020, Sumitomo Drive Technologies, a U.S.-based manufacturer, launched the new Hansen M5CT industrial gearbox. This gearbox is a future-oriented product with development based on the experience of 3 existing product lines.
• In March 2022, RNWBL, LLC. Acquired Gearbox Express; through this acquisition, the company is focused on providing field service and technology to wind, solar, and broader renewable industries.