Gearboxes and Crushers

Global Market Outlook on Gearboxes and Crushers

Market Overview

Global industrial gearboxes market size: $31.5 billion (2022 E)

Expected to grow at a CAGR of ~3.5–4.5 percent to $34.22 billion by 2024.

Regional Market Overview

• The energy crisis in Europe, coupled with lockdown restrictions in China, has significantly impacted the supply market, leading to supply chain constraints and lead time delays

• The planetary gearboxes are the fastest growing among the industrial gearboxes category offering a host of benefits, such as low noise level, flexible ratio, high efficiency, better torque transmission, lightweight, and compactness

Gearboxes Market Overview: Global

Key Market Insights

• Renewable energy (especially wind power), among the prominent industries that employ gearboxes, is expected to spearhead the market growth in its various applications, such as wind turbines, hydro turbines, etc.

• The need for more automated and flexible equipment in a post-COVID industrial landscape will be a major driver for the demand

• Based on the design, industrial gearbox is segmented based on Parallel, Angular, and others. The parallel segment gearbox is expected to hold the largest share during the forecasted period

• The gearbox market is observed to be highly fragmented with major players situated in the APAC region (China, Japan, etc.) and is expected to dominate the market during the forecasted period

Global Crushers Drivers and Constraints

Drivers

• Increasing demand from downstream industries is expected to drive the market

• Recent regulations pertaining to energy efficiency motivate the consumers to upgrade to the energy-efficient motors as Energy costs account for around 96 percent of the total lifetime costs of running electric motors

• Continuous usage of motors and gearboxes results in an increased rate of wear and tear. Hence, the suppliers extending their range of services to after sales support i.e., repair and replacement works. And thus, creating secondary revenue stream to their business,

• One factor pushing demand is replacement. If the average lifespan of a solo gearbox is five years, about one-fifth of those in use will need to be replaced every year

• Flexibility is another key market driver. As consumer demand for more individualized products and packaging increases, it also increases the need for machine flexibility. This is helping to push the development of gearboxes

Constraints

• Various barriers to the adoption of high-efficiency industrial motors/gearboxes involve customer sentiment such as buyers being cost-oriented and focusing on short-term savings as opposed to life cycle cost assessments. Further, motor users prefer to repair the existing motors rather than replace them, due to concerns regarding costs and production downtimes. (applicable to gearboxes also)

• High competition among the manufacturers leads to low-profit margins within the industry, and coupled with a product lifecycle which is typically over 15 years, this restricts the growth of smaller manufacturers, especially in emerging markets. Such suppliers typically compete on price terms, which affects the quality of the products they manufacture.

• Energy Crisis in Europe and Zero-COVID policy in China: The supply market has been impacted due to factors such as Russia-Ukraine war, lockdown restrictions in China, etc.

Industry Best Practices : Gearboxes and Crushers

Factors Affecting Decision Making for Procurement of Industrial and Gearboxes

Proximity to Customer

• Customers prefer to source industrial gearboxes from suppliers who are in close proximity to their manufacturing locations. In many cases, it is not economical to ship such products over large distances, since logistics costs could add to around 7-10 percent of the landed cost.

Technological Expertise

• The cost components of industrial gearboxes have a strong correlation with technological advancements. Buyers must be aware of the latest technological developments in order to evaluate various product offerings and decide which would suit their application for the appropriate price.

Total Lifecycle Costs

• The energy costs of industrial gearboxes contribute to over 95 percent of their total lifecycle costs. With rising electricity prices, buyers are becoming increasingly aware of the expenses incurred in buying less efficient over the entire product life.

Service Levels

• Consumers prefer to source industrial gearboxes from suppliers who provide product management services over the complete lifecycle of the equipment. Such services include installation and commissioning, repairs, training, maintenance, and spare part offerings.