Bearings Market Intelligence

Industry Outlook & Drivers

Market Overview–Global Bearings Market

Global bearings market is expected to grow at a CAGR of 4.7 percent over the period from 2018 to 2022. Asia has the largest demand (>50%) for the bearings market. Globally, the OEM market contributes to about 40 percent, followed by industrial distribution market of 21 percent, and after-market of 9 percent.

• The demand for bearings is highly dependent on the industrial activity of economies, which is closely linked to the Global GDP trends. This is due to the bearing's extensive applications in production and engineering industries across the world
• Global bearings market is expected to grow at a CAGR of 4.7 percent over the period from 2018 to 2022. The United States, Japan, and Germany represent the top three bearing manufacturing countries with China rapidly increasing their presence
• Asia has the largest demand (>50%) for the bearings market, mainly due to the increasing production of automobiles followed by rapid industrialization in developing economies countries such as China, India, and South East Asia . Overall the region is estimated to witness a robust growth of around 10 percent by 2020
• Globally, the OEM market contributes to about 40 percent, followed by industrial distribution market at 21 percent, and after-market at 9 percent. The automobile sector has shown a slump in their aftermarket demand due to the shorter resale and longer lifespans of bearings
• There is no disruptive technology in the bearings industry but the need for energy efficiency and higher life span is creating new opportunities for the bearings manufacturers globally
• The overall supply landscape of the bearings market is consolidated as the top six suppliers contribute more than 65 percent of the market share and the top manufacturers are based out of Germany, the US, and Japan.

Market Dynamics–Drivers & Constraints

Drivers

Growth of Automotive Industry

• The global automotive industry is currently, one of the highest revenue generating industries in the world. The rising production of vehicles worldwide is pushing the growth of bearing market
• In the coming years, automotive bearings demand is expected to rise in Europe, Americas, Africa, and Asia-Pacific especially. This is because the demand for vehicles, mainly passenger cars and two wheelers are witnessing a constant rise worldwide

New Technological Developments

• The technology oriented industries such as, aerospace and defense, robotics, medical, etc. have witnessed a huge demand for effective, heavy-duty, SMART, and durable bearings in order to meet industry standards and demand across critical and hi-tech applications. So, a rising demand for bearings from these industries are also expected to drive the demand for bearings globally

Investments and Improvements in Renewable Energy

• In the wind energy sector, bearings are the most important components used in wind turbines. These bearings require designs that can optimize reliability and provide economic efficiency depending on the applications
• The present wind energy market is witnessing a lot of investments due to ongoing projects and innovations in wind power generation. The market for wind energy is driven by China and India significantly in the Asia-Pacific region

Diversification Expansion

• The end user markets served by bearings distributors have witnessed wild swings in demand since the recession. As a result, many distributors have been expanding their target markets. Key targets for growth areas includes; food and beverage, automation, manufacturing, and energy

Constraints

Dropping Market Share

• The influx of new players with aggressive pricing and lower cost structures has caused bearing prices to drop considerably
• Manufacturers from USA are facing increased competition from low cost imports from developing countries, especially from APAC
• The turbulence in the global industrial sector has restrained the bearing market growth. The market witnessed a decline in 2016, however, there was a recovery of bearings market in 2017

Increasing Concern over counterfeit products 

• Nearly every major bearing manufacturer has been hit over the last few years by counterfeiters – and as a result, they're working with channel partners to combat the growing issue (e.g. SKF )
• For example, NSK provides training to its distribution network on “how to identify and address counterfeiting activity of bearings”