Global geared products market anticipates slowdown; India to prop up revenue

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Global geared products market anticipates slowdown; India to prop up revenue

Global geared products market anticipates slowdown; India to prop up revenue

Industry News
Jan 08,24

Interact Analysis forecasts a revenue decline of 1.9 per cent for the global geared motors and industrial gears market in 2024. It is expected that Indian and Southeast Asian markets will prop up revenue growth of geared products in APAC over the next couple of years.

Global geared products market anticipates slowdown; India to prop up revenue

London

The geared motors and industrial gears market experienced a decline in 2023 following strong growth in 2022, according to Interact Analysis, the global market intelligence firm which expects further market contraction in 2024 before recovering in 2025.

Interact Analysis’ latest research found that many gearbox suppliers observed a slowdown in order intake in the second quarter of 2023, leading to an expected market revenue contraction of 0.7 per cent. This dip is expected to continue into 2024, leading the firm to forecast a further revenue decline of -1.9 per cent for the geared motors and industrial gears market next year. However, the outlook appears to be rosier for 2025 and beyond, with steady growth expected of about 3-5 per cent per year out to 2028.

Despite a slow year for the market in 2023, the global geared products market was worth $ 12.6 billion in 2022, representing year-on-year growth of 1.4 per cent. Price increases played a significant role, as average selling prices of geared products rose by 5-10 per cent in 2022 fuelled by raw material costs, supply chain problems and rising energy prices.

APAC leads the global geared products market

Taking a look at the market by region, APAC is by far the largest for geared products, representing 46 per cent of global revenues. This is followed by EMEA and the Americas with shares of 33 per cent and 21 per cent respectively. Revenue growth in the Americas outpaced EMEA in 2022 as a result of strong demand and strong currency. The market in the Americas grew by 12 per cent in 2022, compared with just 1.1 per cent in EMEA and -2.7 per cent in APAC.

However, in 2023, the APAC region is expected to have experienced the largest contraction, while the Americas region is forecast to maintain reasonable growth. This decline in APAC is largely due to the contraction that has been observed in China and the impact of the property slump on this market. It is expected that Indian and Southeast Asian markets will prop up revenue growth of geared products in APAC over the next couple of years.

Commenting on the supplier landscape for the geared products market, Samantha Mou, Research Analyst at Interact Analysis, said, “The leading vendors for the geared products market remain relatively unchanged, but concentration of the supplier base continues. As a result of its acquisition of Altra Motion, Regal Rexnord is now among the top 5 leading global suppliers of geared products. Overall, the ranking of other leading vendors remains stable, with SEW Eurodrive retaining its position as the #1 vendor globally and across all tri-regions. The EMEA vendor landscape is the most ‘stable’, with all leading suppliers enjoying growth in their specialized areas in 2022.”