Reasons for stagnant motor gear market

In recent years, the global gear product market has experienced ups and downs. It recovered strongly in 2010 and 2011, contracted in 2012, and then recovered slightly in 2013. In 2014, the global gear product market was valued at more than 12 billion dollars, a slight increase over 2013. However, it is expected that the recovery will interrupt the market growth and lead to the stagnation of the market in 2015 and 2016, mainly because of the poor performance of the gear motor market due to the unstable performance of the downstream process industry under the uncertainty of the global economy and geopolitics.

IHS predicts that the global gear product market will gradually recover from the middle of the forecast period, growing at a compound annual growth rate of 1.6% from 2014 to 2019, and reaching 13 billion dollars by 2019. In terms of regional markets, the Asia Pacific region is still the largest regional market for gear products in 2014, accounting for 46% of global revenue, with a valuation of more than $5.5 billion. EMEA is the second largest regional market, worth more than 4.3 billion US dollars in 2014, accounting for 36% of global revenue.

In 2014, the transmission market was still much larger than the reducer market, accounting for 60.3% of the market revenue. However, IHS predicts that the growth of the transmission market will be much slower than that of the reducer market until 2019, and will shrink until 2016. In general, from 2014 to 2019, the transmission market revenue will achieve a compound annual growth rate of 0.9%, which is mainly due to the poor performance of downstream process industries, especially mining, cement and metal processing. The reducer market in the same period is expected to achieve a compound annual growth rate of 2.8%, partly because the share of reducers in the discrete industry is larger than that of transmissions, and the gear products in the discrete industry will grow faster than that in the process industry. It is estimated that the reducer market will reach 5.5 billion dollars in 2019, and its share in the overall gear products will increase from 39.7% in 2014 to about 42%.

The performance of the gear product market largely depends on the potential growth of its application industries, including many machinery and processing industries. The material processing industry is an industry with many gear products. In 2014, it accounted for 15.5% of the market revenue, with a revenue of nearly $1.9 billion. The compound annual growth rate from 2014 to 2019 was also 4% higher. The food and beverage industry is the second largest application market of gear products, especially the reducer. It is expected that from 2014 to 2019, it will also be the downstream industry with the second fastest compound annual growth rate, which is 3.5%. As one of the main downstream industries, mining will be the worst among all industries, with a compound annual growth rate of - 3.4%, followed by metal processing.

In terms of market pattern, European suppliers continued to lead the whole gear product market in 2014, with eight of the top ten companies, accounting for about 45% of the global total revenue. SEW-EURODRIVE is still the market leader of gear products, occupying a dominant position in the reducer field. The market share of transmission is leading, and the overall market share of gear products is the second.