Know Your Market: Industrial Gearbox Sector
Gearboxes are widely used in various fields for a wide range of application. As a result, there are numerous kinds of industrial gearboxes, all with their own unique mechanisms, features, and functions. Gearboxes are essential for the functioning of devices and equipment like conveyor belts, elevators, 3D printing devices, mining, and heavy vehicles. The demand for the […]READ MORE >>
Gearboxes are widely used in various fields for a wide range of application. As a result, there are numerous kinds of industrial gearboxes, all with their own unique mechanisms, features, and functions. Gearboxes are essential for the functioning of devices and equipment like conveyor belts, elevators, 3D printing devices, mining, and heavy vehicles. The demand for the industrial gearbox is on a rise as automation in end-user industries such as paper, cement, sugar, and steel to reduce operational costs associated with manufacturing facilities are also on a rise. Additionally, many end-user industry buyers are trying to enhance the efficiency of machines and engines at their manufacturing facilities by procuring and installing industrial gearboxes.
Supply Market Overview: Industrial Gearbox Market
At present, several end-user industries are shifting their heavy manufacturing facilities to the APAC region. As a result, the spend in this market is expected to rise significantly. However, its quite a contrasting case in MEA as most of the buyers in this region are from the oil and gas industry, which uses industrial gearboxes for upstream activities. Rest of Europe and North America are expected to grow steadily as buyers from the renewable energy sector are continuously focusing on increasing the production of renewable energy by setting up windmills, which require industrial gearbox. However, the demand is not stable in those regions as most of the end-user industries located in Europe and North America are shifting their production hubs to APAC to enhance their profit margins.
With raw material prices on a rise, the pricing of the industrial gearbox is expected to change. Additionally, factors like commodity price fluctuations, the rise in R&D investment, and increase in logistics costs are expected to affect the final pricing. Buyers in this market are opting for a global sourcing strategy to procure high-quality and efficient industrial gearboxes based on end-user industry applications. This strategy involves costs related to inspection, quality assurance, maintaining overseas relations, and hefty tariffs on imports and exports.
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Factors impacting market demand
One of the biggest demand drivers for the industrial gearbox is the requirement for replacements in the manufacturing sector. Industrial gearboxes that are used in end-user industry applications such as manufacturing processes require periodic replacement due to gradual wear and tear. Maintenance of industrial gearboxes is required to improve the efficiency of the manufacturing process. an average replacement can cost around $1,300-$1,600 based on the end-user industry application and the type of gearbox used. Additionally, the continuous evolution of engines and equipment has increased the requirement for advances in industrial gearboxes to enhance efficiency. As a result, buyers of end-user industries are increasingly adopting and installing advanced industrial gearboxes.
Suppliers should continuously monitor the amount of waste being generated by their business activities, along with the percentage of recycled waste out of the total waste generated. This includes practices such as monitoring the amount of waste sent to landfills and the percentage of recycled waste. For instance, Siemens recycles more than 75%-85% of the waste generated at its production facilities and thus reduces its volume of waste sent to landfills. Additionally, suppliers are taking initiatives to reduce GHG emissions and water consumption as well.
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Read more about the market outlook of the industrial gearbox market along with procurement best practices, pricing models, supply market insights, and market challenges in SpendEdge’s upcoming report on the global industrial gearbox market.