The global industrial gears market was valued at US$ 204 Billion in 2021 and is expected to exceed US$ 273 Billion by 2030, registering a CAGR of 3.2% over the forecast period. 

An industrial gear is an enclosed system in which there is mix of gears which are used to transmit power and energy to an output device. Industrial gears find its application across range of industries such as aviation, steel & sugar industry, construction, automotive and many more. Gears are made up of different kinds of materials such as aluminium, iron, steel, plastic, and bronze. There are different types of gears such as helical, worn, planetary, rack and pinion, and spur gear. Modern industrial gearboxes play a critical role in the proper functioning of a variety of industrial equipment and processes. Some of the key factors driving the global industrial gears market are the rising demand for gearboxes for equipment used in the construction sector and the rapid increase in global installed capacity of wind power in recent years.

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MARKET DYNAMICS

Over the forecast period, the market is expected to be impacted the most by the following factors: 

Drivers

Rising Wind Power Installations 

Environment-friendly power sources such as wind power are gaining increased attention from policymakers globally to lower carbon emissions associated with the power sector. The rapid increase in the global installed capacity of wind power in recent years is likely to drive the market during the forecast period. For example, in 2018, the worldwide wind power establishments expanded to 591 GW from 14.86 GW in 2006. Wind turbines, which convert wind energy into power, comprise of a gearbox that helps increase the high-torque, low-speed rotation of the turbine’s rotor to match with a high-velocity electrical generator. The rising demand in wind energy could lead to promising growth prospects for the industrial gear market in the near future. India has currently the world's fourth-highest installed wind generation capacity of 39.25 GW as of March 31, 2021. The country’s wind energy sector created 60.149 billion units of power in 2020-21. The Indian government is focusing on increasing the interest of private companies in wind power projects by offering monetary advantages like custom duty exemption on key components of wind energy generators.

Rapid growth of construction industry in developing nations

The rising demand for gearboxes in the rapidly increasing global construction sector is one of the key factors driving the industrial gears market. Modern gearboxes help in improving the functional productivity across various industries, by providing better working results, reduced workload, and noise management, of construction machinery. In 2018, the construction sector in China endorsed agreements with worth than 7 billion US$. Furthermore, the rapid pace of urbanization in emerging economies is expected to continue to encourage investments in fundamental infrastructural areas like power, development, and transportation.

Restraints 

Technical faults such as oil leakage and heating

Being the most widely used transmission system in most machines, the smooth and normal activity of the gearbox is critical to the proper functioning of several systems. Gearbox malfunction, especially caused by oil spillage, can not only lead to unnecessary repair costs but also hamper workplace safety, while also resulting in oil wastage. These gear boxes operate under extreme conditions resulting from exhausting activities such as production and manufacture, pressure, and vibration. In such situations, failure to diagnose and manage risks early on can lead to additional hazards. This risk can be avoided by establishing an effective maintenance strategy and protocols such as powerful control measures for oil spillage in the gearbox, the correct installation, and welding box steel plate among others.

The global industrial gears market witnessed a notable setback in 2020 as the COVID-19 pandemic disrupted the operations of several industries. The disruptions impacted each component of the value chain, from raw material suppliers to producers and end clients. Operators were required to shut processing plants and production facilities amid lockdowns and social distancing measures announced by government bodies, bringing about a sharp drop in the sales of industrial gears on a global level. 

Market Segmentation

Product Type Analysis

On basis of product type, the spur gear segment valued at US$ 55.4 billion in 2021. The segment is expected to register a robust CAGR of 4.2% over the forecast period, thanks to the benefits of spur gears such as high transmission efficiencies, simple handling, and effectiveness. Moreover, the planetary gear segment is expected to register the highest CAGR of 5.6% over the forecast period. The high demand for planetary gear can be attributed to benefits such as solidness, high productivity, and capacity to deal with high force loads. The planetary gear segment had a valuation of US$ 37.2 billion in 2021 and is expected to rise to US$ 61.2 billion by 2030.

Application Analysis

In terms of application, the automotive segment dominated the industrial gears market in 2021, with around 71.0% share. The global rise in the production of automatic transmission vehicles combined with rising demand in modern technology in the automotive industry has propelled the segment growth. Manufacturers of automotive industry prefer using industrial gears as lot of equipment are involved in the operations of automotive which requires air compression and gear motor systems. Moreover, the aviation and oilfield equipment segment are expected to register a 6.4% CAGR during the forecast period.

Distribution Channel Analysis

Based on distribution channel, the OEMs segment accounted for a 54% share of the global market in 2021, followed by the aftermarket segment. The aftermarket segment is expected to register a promising CAGR of 4.7% over the forecast period. The OEM segment valued at US$ 109.5 billion in 2021. Moreover, the growth of the aftermarket segment can be attributed to the high demand for replacement gears across several industries. The aftermarket segment was valued at US$ 94.6 billion in 2021 and is expected to reach US$ 145.2 billion by 2030.

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Regional Analysis:

By region, Asia Pacific held the dominant market share of 46.2% in the global industrial gears market in 2021. The regional market was valued at US$ 94.8 billion in 2021 and is likely to register the highest CAGR of 4.9% over the forecast period. The key factors expected to drive the market for industrial gears in Asia Pacific are the rapidly growing auto parts manufacturing and automobile assembling markets in the region. Asia Pacific region has good access to skilled labor and cheap raw materials, and the region is in close proximity to key automotive markets. China held the major share of 53.6% in the Asia Pacific industrial gears market in 2021 whereas, India is anticipated to grow at the highest growth rate over the forecast period. Moreover, South America accounted for the lowest market share of around 3.9% in 2021. 

Competitive Insight

The global industrial gears market is of highly competitive nature as the seven leading players collectively accounted for nearly 49.0% of the market. Leading players are aggressively focusing on market expansion strategies to strengthen their positions in the marketplace. Some of the key players operating in the market are Ford Motor Company, Honda Motor, ZF Friedrichshafen, Toyota Industries Corporation, Aisin Seiki, General Motors, and Volkswagen. Other players contributing in the market are Aero Gear Inc., Precipart Corporation, Hota Industrial Manufacturing Co. Ltd, Cleveland Gear Company, Eaton, Philadelphia Gear, ITAMCO, Riley Gear Corporation, Atlas Gear Company, David Brown Santasalo, Martin Sprocket & Gear, Inc., Jackson Gear Company, OKUBO GEAR Co. Ltd, Omni G&M Corporation, Gear Motions, and Caterpillar Inc. 

Segmentation Overview 

The global industrial gears market is segmented based on Product Type, Application, Distribution Channel, and Region. 

By Product:

• Spur Gear
• Planetary Gear
• Helical Gear
• Rack and Pinion Gear
• Worm Gear
• Bevel Gear
• Others

By Application:

• Automotive
• Aviation
• Agricultural Machinery
• Construction Machinery
• Material Handling
• Mining Equipment
• Oilfield Equipment
• Power Plants
• Pulp and Paper
• Steel and Manufacturing
• Others

By Distribution Channel:

• OEMs
• Aftermarket

By Region:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America