Gear motor market to stagnate
The global market for geared products has experienced ups and downs in recent years, with a strong recovery in 2010 and 2011 followed by a contraction in 2012 and slight recovery in 2013. The global geared products market is estimated to have been worth over $12 billion in 2014, showing slight growth from 2013. However, the recovery trend is expected to halt market growth and lead to stagnation in 2015 and 2016, primarily because of the poor performance of the gearboxes market, which is predicted to be hurt by the performance of the downstream process industry sectors under the circumstance of a volatile global economy and geopolitical uncertainties.
IHS predicts the global market for geared products to gradually pick up growth from the middle of the forecast period with a revenue CAGR of 1.6% from 2014 to 2019 to achieve $13.0 billion in 2019. In terms of regional markets, Asia Pacific was still the largest regional market for geared products in 2014, accounting for 46% of global revenues with an estimated value exceeding $5.5 billion. EMEA was the second-largest regional market in 2014 with a value of over $4.3 billion, representing 36% of global revenues.
The market for gearboxes continued to be much larger than the market for geared motors in 2014, accounting for an estimated 60.3% of market revenues. However, IHS forecasts that the market for gearboxes will grow much slower than the market for geared motors through 2019, with contraction occurring up to 2016; overall, the gearboxes market will generate a revenue CAGR of 0.9% from 2014 to 2019. This will be primarily because of the underperformance of its main downstream process industry sectors, especially mining and cement as well as metal processing. The market for geared motors is forecast to see a 2.8% revenue CAGR from 2014 to 2019, in part because the share of geared motors in discrete industry sectors is higher than that of gearboxes, and the discrete sector for geared products is forecast to grow faster than those of the process sector from 2014 to 2019. The geared motor market is projected to reach nearly $5.5 billion in 2019, accounting for approximately 42% of total geared products, up from 39.7% in 2014.
The performance of the geared product market is largely dependent on the underlying growth in the industries that use them, which include many machinery and process sectors. The materials handling sector is the largest sector for geared products, accounting for 15.5% of market revenues in 2014 with an estimated value of nearly $1.9 billion and the highest revenue CAGR from 2014 to 2019 at 4%. The food and beverage sector (including machinery and process) is the next largest sector for geared products, especially geared motors, and it is projected to also grow at the second-fastest CAGR of the downstream industries at 3.5% from 2014 to 2019. Mining, one of the major downstream sectors, is forecast to perform the worst across all industry sectors with a revenue CAGR of -3.4%, followed by metal processing.
In terms of market landscape, European suppliers continued to lead the total market for geared products in 2014, with eight out of the top-ten companies accounting for an estimated 45% of total global revenues in 2014. SEW-EURODRIVE remained the market leader in geared products, primarily because of its dominance in geared motors. Siemens was the market share leader for gearboxes and held the second -highest total geared product market share.