North America Precision Gearbox Market Analysis

North America Precision Gearbox Market Analysis

NA precision gearbox market from parallel was valued at USD 16.7 million in 2016 and will exhibit 4.0% CAGR up to 2024. Parallel gearbox, also known as coaxial gearbox, has input and output shaft parallel or in line to each other. These are mainly useful owing to their compact design, occupying less space.
 

Right angle gearbox acquired nearly 10% of total market share in 2016. They are used for applications with output and drive shaft inclined at 90 degrees with each other. Applications requiring inclined shaft prefer right angle precision gearbox. Limited installation space and compact design are the key factors boosting the product growth. Along with this, right angle precision gearbox can be combined with other gearboxes adding advantages to the product. The combination of the right-angle precision gearbox with other precision gearbox provides an added advantage in the installation of applications. The key disadvantages of the product are complex design and low torque transmission ratio.
 

Carbon steel is estimated to acquire over 23% of volume share in 2024 owing to higher strength and low cost of the material. The advancement in carbon steel with a superior watertight design required by the application will boost the business demand.
 

Recent developments in molding and manufacturing techniques will support the plastic segment. Increasing innovations owing to lightweight applications requiring minimum lubrication will boost the overall business demand. Plastic is used for the applications requiring less power output along with low maintenance of the product. Applications in constant contact with the fluid or chemicals mainly prefer plastic gearboxes.
 

Automotive applications registered revenue more than USD 122 million in 2016 and is anticipated to dominate the industry over the forecast timeframe. The expansion of the automotive industry will support the business growth. The shifting consumer preference toward electric vehicles supplying optimum power and speed will boost the industry demand. The noiseless operation for the application will further stimulate the product demand.
 

Precision gearbox application in food industry is projected to exhibit 6% CAGR during the forecast timeframe. The expansion in packaging technology across the food industry reduces the production time and offers ease in application, driving the product demand. Tight tolerance is required between casing and gears for proper functioning and the industry players are developing products as per the application requirements.
 

The OEM is expected to dominate the precision gearbox market acquiring more than 84% volume share in 2024. Superior tolerance along with ease-in-installation owing to the higher precision of the product will support the product demand. Manufacturers are offering increased product range and supplemental offerings in the market. According to the application requirements, the product is required to deliver high durability, economy, efficiency, reliability, lubrication, and value. Expanding demand for the automotive, food, and healthcare applications will further enhance the product growth. Equipment requiring precise and fast indexing movement is boosting the demand for precision gearboxes. Products available in gear ratios ranging from 5:1 to 50:1 provide customized solutions for OEM applications.
 

U.S. precision gearbox market was valued at USD 332 million in 2016 and is expected to increase at 5.3% CAGR up to 2024. The industry growth will be fuelled by the country’s healthy economic growth, increasing individual income levels, continued industrialization efforts, manufacturing output, and innovations in vehicles. The food & beverage industry of the U.S. aims at competitive pricing coupled with sustainable production, transportation, and packaging solutions. This operational efficiency is attained by implementing automated solutions, thereby enabling producers to develop advanced products at low costs. Increasing automation needs in the country will support the industry growth in the coming years.
 

Market growth is estimated to be healthy in Canada. The appropriate pricing of the product with appreciable features will attract the customers’ attention. To sustain in the competition, it is vital to manage expenses related to the manufacturing and offer low-priced products. The business prospects are strongly associated with the economic activities of the country in core sectors such as mining, oil, infrastructure, and power.