Market Trends of Industrial Gearbox Industry
Helical Gearbox Type Segment to Dominate the Market
- In a helical gearbox, the teeth on a helical gear are cut at an angle to the face of the gear. When two teeth start to engage, the contact gradually begins at one end of the tooth and maintains contact as the gear rotates in full engagement. It offers the capacity to conduct a smooth operation and high thrust outputs. It is the most used gear in automobile transmissions, generating large amounts of thrust.
- Defining features of helical gearboxes include extremely high output torques, silent operation, and long service life. Helical Gearboxes are the most efficient gearboxes manufactured in the industry and work at 98% efficiency, after Planetary Gearboxes. Due to their high efficiency and high thrust generating capabilities, helical gearboxes are utilized in major industries, like fertilizer, automobiles, steel, rolling mills, power and port industries, and manufacturing sectors, such as textile, plastics, and food.
- Helical Gearbox is used in automobile transmissions in medium and heavy-duty industrial applications, as it can handle high speeds and loads. Modular design and construction offer many engineering and performance benefits, including a high degree of interchangeability of parts and sub-assemblies. This, in turn, provides considerable economies of production while maintaining the highest standard of component integrity.
- As global vehicle production surges, the demand for helical gearboxes is on the rise. Renowned for their smooth operation and capability to manage high torque with minimal energy loss, helical gearboxes are becoming indispensable in today's automotive landscape.
- Further increasing automobile production is driving the demand for helical gears. In 2023, global motor vehicle production reached 94 million units, marking a roughly 10% uptick from the prior year, as reported by the International Organization of Motor Vehicle Manufacturers (OICA). Leading the charge in production were China, Japan, and Germany, dominating both car and commercial vehicle outputs.
- Investments in the auto sector are set to boost the demand for helical gearboxes, particularly for their noise-reducing benefits. In March 2024, the Indian auto sector plans to inject up to USD 7 billion by FY28. This move aims to localize advanced components, like electric motors and gearboxes, thereby curbing imports. The Automotive Component Manufacturers Association (ACMA) indicates that this investment will be spread between FY24 and FY28.
- In April 2024, BMW Group, the German automotive giant, revealed plans to pump an extra USD 3.12 billion into its Shenyang production base, located in Northeast China's Liaoning Province. The China Association of Automobile Manufacturers highlighted a robust start for China's vehicle market in Q1 2024, with production and sales surpassing 6.6 million units.
- Therefore, based on the above factors, the helical gearbox type segment is expected to dominate the market during the forecast period.
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Asia-Pacific to Dominate the Market
- The Asia-Pacific region accounted for a significant share of the industrial gearbox market, owing to the increasing demand for gearboxes in various applications like the manufacturing sector, power industry, etc. Countries such as India, China, Japan, Korea, and Australia, are the key contributing nations in the region.
- China's industrial production saw a 5.3% uptick in October 2024. Month-over-month, the growth stood at 0.41%. China’s robust industrialization and infrastructure projects, including the Belt and Road Initiative, drive demand for construction equipment requiring industrial gearboxes.
- According to the China National Bureau of Statistics, the industrial sector contributed approximately 31.7% to China’s GDP in 2023, making it the largest contributor, followed by the retail and wholesale industries. The growth and development of the industrial sector are key drivers of the industrial gearbox market in China. As industrialization continues to advance, the need for reliable and efficient power transmission systems will further propel the adoption of industrial gearboxes in the country.
- The automobile and steel industries are other major potential markets for industrial gearboxes in India. The automotive sector in India is expanding owing to the current investment plans made by some of the market leaders in the industry.
- For instance, one of the passenger vehicle market leaders – Maruti Suzuki India, has announced plans to add an estimated 1 million units from its new factory in Kharkhoda, Haryana, by 2028. Of these, the first 250,000 units will be commissioned by 2025. Additionally, to cater to increased demand for its PV range, the company has also decided to increase capacity at the Manesar plant by 100,000 units in 2024.
- In January 2024, VinFast announced plans to invest up to USD 2 billion in establishing an electric vehicle factory in India, which ranks as the world's third-largest auto market by sales. Located in Tamil Nadu, a southern state of India, this factory marks VinFast's inaugural venture into the Indian market. Such expansion in the Indian automobile industry is expected to offer vast opportunities for industrial gearboxes in the future.
- The steel industry in India is another potential user of industrial gearboxes in the country, and the growth of the market studied is also dependent on the development of this end-user sector. In the January-November 2023 period, India emerged as the world's 2nd largest crude steel producer, churning out 128.15 million tonnes - a notable year-on-year growth of 12.1%. This output represented a 7.5% share of global crude steel production.
- Therefore, based on the above-mentioned factors, Asia-Pacific is expected to dominate the industrial gearbox market during the forecast period.
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