Increasing implementation of automation technology in the production process is likely to propel the demand for the installation of robots, eventually driving the global precision gearbox market size is expected to reach $ 4.7 billion by 2028.
According to a new report by Grand View Research, the market is anticipated to expand at a CAGR of 8.9% from 2020 to 2028.
The presence of many raw material suppliers, providing multiple options to product manufacturers, is projected to result in low bargaining power. In addition, the low switching cost for manufacturers is expected to decrease the bargaining power of suppliers. The increasing product demand in the medical industry is anticipated to benefit the market growth. In addition, the outbreak of the coronavirus pandemic across the globe has promoted the demand for medical equipment, which is anticipated to benefit market growth further, the report said.
Notable players in this market inlcude Parker-Hannifin, Nidec-Shimpo, Neugart GmbH, Bonfiglioli Riduttori and Nabtesco.
According to Grand View Research, the harmonic precision gearboxes segment is expected to witness the fastest CAGR of 11.6% from 2020 to 2028 because of its broad application scope, including rotary tables, positioning systems, and industrial robots, and cutting machines across various industries.
Military, Aerospace To Grow
The military and aerospace application segment is expected to reach $ 596.5 million by 2028, owing to high investments by governments across several countries toward adopting advanced and dependable equipment in the defence sector, such as electro-optical targeting systems, gimbal systems, periscope systems, and smart munitions.
North America dominated the market and accounted for revenue valued at $ 348.3 million in 2020 due to increasing investment by several companies towards adopting advanced material handling equipment in the steel, power generation, and cement industries.
In China, the market was valued at $ 586.5 million and is expected to be driven by the adoption of advanced robotic systems in warehousing, as per the trend of zero-labour warehousing.
The research firm said that the market is competitive due to several multinational players primarily consolidated in Europe and North America, whereas the Asia Pacific exhibits a limited presence of the established players.
The market is characterised by established players with a strong financial base; as a result, the entry barriers are high. In addition, the manufacturers are investing heavily towards developing application-specific precision gearboxes, which further provides a competitive edge to the manufacturers. Thus, the threat of new entrants is expected to remain low, Grand View Research said.
Courtesy: Grand View Research. NB: Photo is representational; courtesy: Parker-Hannifin.