April 21, 2024
Gear Reducer Market

Gear Reducer Market Growth Is Driven By Increasing Industrial Automation Across Globe

Gear reducers are widely used across various industrial applications such as material handling equipment, packaging machinery, metalworking machines, and automated assembly lines due to their ability to reduce rotational speeds and increase torque efficiently. Gear reducers find applications in conveyor belts, cranes, mixers, presses, and packaging machines among others. They help improve efficiencies of industrial processes by facilitating smooth and controlled motor motions. The global gear reducer market size was estimated at USD 18.54 billion in 2023.

Gear reducers are compact mechanical devices that are used with electric motors or engines to decrease rotational speed and increase torque output. They play a vital role in automating industrial processes by enabling applications which require movement of huge loads at controlled, slower speeds. Rise in industrial automation across industries such as food & beverage, metal & machinery, automotive has fuelled the demand for gear reducers. Also, gear reducers have advantages such as long operational life, low maintenance requirements, high torque output, and robust construction making them suitable for continuous and heavy duty industrial applications.

The global Gear Reducer Market is estimated to be valued at US$ 19.96 Bn in 2024 and is expected to exhibit a CAGR of 8.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the Global Gear Reducer Market Size is adoption of new materials. Manufacturers are focusing on developing gear reducers using advanced, lightweight materials like aluminum and plastics to enhance efficiency. Use of new materials helps in reducing weight and inertia of gear reducers without compromising on strength and torque capacity. This enables wider applications in industries where weight is a critical factor like aerospace. Additionally, new materials also provide benefits such as corrosion resistance, durability and ability to operate efficiently in harsh environments.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the gear reducer market is moderate. Significant investment is required for production capacity.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes like clutches and brakes.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to diversity in raw materials.

Threat of new substitutes: Threat of substitution is moderate as other mechanical devices like variable speed drives offer similar functionality.

Competitive rivalry: The gear reducer market is fragmented with the presence of both global and regional players.

Key Takeaways

The global gear reducer market is expected to witness high growth. The market size for 2024 is US$ 19.96 Bn and is expected to reach US$ 36.88 Bn by 2031, growing at a CAGR of 8.3% during the forecast period.

Regional analysis: Asia Pacific dominates the market and is expected to grow at the fastest rate during the forecast period. This can be attributed to increasing industrialization and growth of end-use industries in China, India.

Key players: Key players operating in the gear reducer market are Chevron Corporation, BASF SE, Afton. Chevron Corporation and BASF SE dominate the market. Chevron Corporation and BASF SE are the market leaders and together account for over 30% of the global market share.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it