Defence and Robotics Lift Precision Gearbox Market in 2025

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Defence and Robotics Lift Precision Gearbox Market in 2025

Defence and Robotics Lift Precision Gearbox Market in 2025

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Feb 24,26

Precision gear revenues rose 7.8 per cent in 2025, supported by robotics demand and rising defence production, with military applications emerging as a key non-robotics growth driver through 2030, with insights Samantha Mou at Senior Analyst, Interact Analysis

Defence and Robotics Lift Precision Gearbox Market in 2025

Key Takeaways

With robotics projected to take a larger revenue share by 2030 and defence production accelerating globally, precision gearbox demand is increasingly tied to automation intensity and strategic spending cycles.
Rising applications in humanoids, mobile robots, semiconductors and defence are shifting focus towards compact, lightweight and high-torque gear solutions, rather than standard industrial demand.

Market revenues for precision gears grew 7.8 per cent year-on-year in 2025, following a decline of more than 10 per cent in 2024. This assessment is drawn from the Precision Gearboxes & Geared Motors report, based on extensive surveys with precision gearbox manufacturers.

The precision gears market remains closely linked to robotics, which contributed 35 per cent of global revenue in 2025, up from 33.6 per cent in 2021. By 2030, robotics is projected to account for 46.3 per cent of the global precision gear products market. The latest analysis covers sales across industrial, mobile and humanoid robots, indicating a steady rise in robotics’ revenue share over the coming years.

Figure 1 -Share of precision gear products revenue from robotics is expected to rise; Source: Interact Analysis

Industrial robots – modest recovery expected in 2026

Revenues from industrial robots, including collaborative robots, accounted for 27.3 per cent of global precision gearbox and geared motor sales in 2025, valued at $878 million. This represents a rebound from $790 million in 2024, though still below the $1.0 billion recorded in 2023. In 2024, industrial robot production declined from over 521,000 units to just over 502,000 units.

The 2024 contraction was driven by excess inventories from 2023 and weak investment across major regions. In 2025, production recovered strongly in Asia, with precision gear product sales rising 16 per cent, while markets in the Americas and EMEA remained largely flat.

Stronger demand from the industrial robot sector is expected across all major regions in 2026. In the US, reshoring and recovering manufacturing output are supporting demand. In Europe, delayed automotive projects are expected to resume. In Asia, steady growth in electronics and semiconductors, driven by the AI boom, is contributing to recovery.

Mobile robots – continued growth forecast

The mobile robot sector remains a high-growth segment, although shipment forecasts have been revised downward due to economic challenges. Tariffs and uncertainty in 2025 have delayed large-scale investments, prompting phased deployment strategies.

Despite this, mobile robots continue to drive precision gear sales. Revenue from this sector grew 24.5 per cent in 2025 to $169 million. With a forecast average annual growth rate of 20.1 per cent, the market is expected to exceed $400 million by 2030, contributing an 18 per cent increase in total revenue for the precision gear products market from 2025 to 2030.

Humanoid robots to become second largest market by 2030

In 2024, precision gearbox manufacturers generated $16 million in revenue from humanoid robotics. By the end of 2025, this had grown fivefold, as production expanded from just under 2,000 units to over 10,000 units. In 2026, revenue from this segment is projected to nearly double again.

Strain wave and planetary gearboxes are currently predominant in humanoid robot actuators. Cycloidal gears are being tested and selected for specific models, mainly for waist, hip and knee joints requiring higher torque and stiffness. By 2030, strain wave and planetary gears are expected to remain dominant due to their lightweight, compact design and relatively lower cost. Cycloidal gears show growth potential in high-torque and high-impact applications and are under evaluation for such use cases.

Figure 2 -The humanoid robot sector is expected to become the second largest market for precision gear products by 2030; Source: Interact Analysis

Non-robotics industries

Beyond robotics, higher revenue growth by 2030 is expected from military and defence, semiconductors and electronics machinery, and medical equipment.

Military and defence production is accelerating amid rising defence spending in major regions. Precision gear sales in this sector are projected to grow at a 5.9 per cent average annual rate from 2024 to 2030, the fastest among non-robotics industries. Applications include positioning and steering systems for radar and communications equipment, aerospace and military aircraft, military vehicles and unmanned systems.

The semiconductor and electronics sector has rebounded cyclically since 2024, supported by the AI boom and policy initiatives, with investments outpacing other manufacturing industries.

The medical equipment sector, which is more consumer-facing than traditional industries such as machine tools and woodworking, is expected to outperform most general manufacturing sectors in precision gear sales, particularly during manufacturing slowdowns. Food and beverage machinery and packaging machinery are also projected to sustain relatively higher growth in 2026.

However, while medical equipment typically requires high-end precision gears with reduced backlash, some clients in food, beverage and packaging are opting for “good-enough” products, lowering average prices and moderating revenue growth in these segments.

Outlook

The global precision gearbox and geared motors market recovered in 2025 after a challenging 2024. Robotics, particularly industrial and mobile robots, remains the primary growth driver, with humanoid robots emerging rapidly. Although tariffs and investment delays continue to affect short-term performance in general manufacturing, long-term prospects remain positive. Alongside robotics, military and defence, semiconductor machinery and medical equipment are expected to contribute meaningfully to future growth, supported by ongoing advances in precision automation.

About the author:

Samantha Mou, a Senior Analyst at Interact Analysis, provides support in the Industrial Automation sector. Samantha brings with her a master’s degree in Economics, and gained experience, whilst working in Germany, conducting market research in Industrial Equipment and Automobile Components.