Asia Pacific Precision Gearbox Market Size, Share & Trends Analysis Report By Product (Harmonic, Cycloidal, Planetary), By Application (Military & Aerospace, Food Beverage & Tobacco, Machine Tools, Material Handling, Packaging, Robotics, Medical, Others), By Type (Planetary Gearbox, Worm Gearbox, Helical Gearbox, Bevel Gearbox, Spiral Bevel Gearboxes, Others (Flange Gearboxes, hypoid gearboxes, etc.)), By Shaft Orientation (Coaxial, Right angled, Parallel Shift) and By Country(China, Korea, Japan, India, Australia, Taiwan, South East Asia, Rest of Asia-Pacific) Forecasts, 2022-2030

Market Overview

The Asia Pacific Precision Gearbox market size is expected to reach a valuation of USD 3870.8 million by 2030, growing at a CAGR of 10.20 % during the forecast period (2022–2030).  The region's expanding manufacturing industry, particularly in countries like China and India, is driving demand for precision gearboxes due to a focus on higher accuracy and lower operating costs. Increasing automation investment, coupled with the expansion of the industrial sector, is boosting demand for packaging, material handling, and machine tools. Factors such as government initiatives like India's Production Linked Incentive (PLI) scheme further contribute to market growth. 

A precision gearbox is a mechanical device that has a higher tolerance than a regular gearbox. By altering the torque and controlling the speed within precise limits, these devices are machined to have a greater than 90% efficiency. Because they have compact component designs and are made up of two or more gears, they assist conserve space. They are suitable for low-speed jobs and work well with low-frequency vibrations. Precision gearboxes are increasingly used in a wide range of industries, including robotics, medicine, machine tools, material handling, and more. These gears are made for applications that need a high level of precision and accuracy. As a result, they're made with incredibly tight tolerances and have a high efficiency of more than 90%. Because of advantages like quiet operation and tiny size, they're also more helpful than normal gearboxes. As a result, machine tools, robotics, food and beverage manufacturing equipment, and material handling equipment all use them.

The precision gearbox is predicted to have the highest market in Asia-Pacific. Precision gear is in high demand in the region's rapidly increasing manufacturing industry, which is changing its attention to higher accuracy and reduced operating costs. China and India, for example, are two of the fastest-growing economies in the region. Precision gearboxes are in high demand in these areas, because to a burgeoning manufacturing industry that emphasises higher precision and lower operating costs.

Market Dynamics

Market Drivers

• Growing Manufacturing Industry

  Since past few years, Asia's industrial progress has been extraordinary. The most dramatic example was Japan's development as a global industrial superpower in the post war decades, but more recently, countries like South Korea, Taiwan, and Malaysia have been the focus. Despite the fact that Asia's industrial output is still significantly smaller than its share of global population, the industrial sector is rapidly expanding and this will enhance the demand for the precision gearbox in the market.

• High Power Density with a One-of-a-Kind Design

  One of the numerous benefits of planetary gearboxes is their high-power density. This is primarily owing to the gear system's numerous planets, which allow for effective power distribution. Planetary gearboxes boost efficiency by distributing load across many planet gears, which minimises wear and tear and will potentially stimulate market growth in the Asian Pacific area.

Market Restraints

• Threat of Substitutes

  The availability of several substitutes, such as speed reducers and direct drive systems, may stymie the precision gearbox industry's expansion. For example, direct drive systems eliminate the need for gears, reducing product weight and system complexity. It boosts efficiency even further while cutting down on energy waste. Furthermore, a shift away from coil-driven items toward magnet-driven gearboxes has lowered product cost in recent years, potentially limiting product demand in Asian Pacific region and is a significant restraint to market growth.

Market Opportunities

• The Fourth Industrial Revolution (Industrial 4.0) is upon us

  The precision gearbox market appears to have a bright future as the industry evolves and adds new features and capabilities to its core. According to recent developments, precision gearbox manufacturers are focusing more on torque, power delivery, and transmission, making the entire process fluid and transparent. The significance of automated assembly and the usage of precision gearboxes is undeniable as the market works on challenges related to industry 4.0, such as autonomous robots, simulation, system integration, internet of things, augmented reality, and so on. The digitization of material handling equipment is at the heart of the Fourth Industrial Revolution. As a result, increased global research and development investments to innovate and design products in accordance with Industry 4.0 standards will likely provide attractive growth prospects for key players in Asia Pacific, assisting them in gaining dominance through the development of a robust product portfolio.

Regional Analysis

By 2030, the Asia Pacific precision gearbox market is anticipated to be worth USD 3870.8 million, with a CAGR of 10.20% from 2022 to 2030. In Asia-Pacific, precision gearboxes are expected to be the most popular. Precision gear is in high demand in the constantly expanding manufacturing industry in the region, which is focusing on higher accuracy and lower operating costs. For example, China and India are two of the region's fastest-growing economies. Precision gearboxes are in high demand in these locations, because to a growing manufacturing industry that places a premium on increased precision and reduced operating costs. As automation investment develops in tandem with the industrial sector's expansion, demand for packaging, material handling, and machine tools is likely to climb. As a result, precision gearboxes are in high demand in this region. Increased investment in regional manufacturing will be a key supply-influencing element.

Manufacturing industry development and increasing automation in nations like India, South Korea, China, and Japan are supporting regional market demand. These items are used in a variety of applications at the manufacturing facilities, including machine tools, robotic welding machines, and material handling equipment, among others. They not only improve operational precision but also reduce operating expenditures. Rising investments in the regional manufacturing landscape are other key growth enabling factors in the industry. For instance, in 2020, the Government of India approved the USD 27 billion Production Linked Incentive (PLI) scheme to boost domestic manufacturing and create jobs in the country over the next five years.

In the cement industry, an increase in the adoption of modern material handling equipment including waggon tipplers, belt conveyor systems, and bucket elevators for simple movement and handling of materials is likely to drive the market in China. Furthermore, the market is likely to profit from the use of advanced robotic systems in warehousing as part of China's zero-labour warehousing trend.

Segmental Analysis

The Asia Pacific precision gearbox market has been divided into three categories: product, application, and geography.

Based on product

The precision gearbox market has been divided into harmonic, cycloidal, and planetary segments. The planetary category is expected to dominate the market in the region, with a high growth rate. Because of their rolling power, planetary precision gearboxes are compact but powerful. The burden of responsibility can also be distributed throughout the planet's gears. Additionally, these planetary gears feature a low backlash and a high torque-to-weight ratio. As a result, the market is predicted to be driven by its use in robotics over the forecast period.

The precision gearbox business includes military and aerospace, food, beverage, and tobacco, machine tools, material handling, packaging, robotics, medical, and other applications. The robot segment is likely to lead the region's market with respectable revenues during the forecast period. The robotics sector, which is predicted to grow quickly in the next years, uses precision gearboxes the most. This is due to the increasing use of humanoid artificial joints and limbs, as well as factory robots, which rely on precision gearboxes to balance and perform very precise movements for a wide range of services and industrial operations. Precision gearboxes are widely utilised in the robotics industry since this field necessitates exact positioning, which precision gearboxes provide. As a result, the expansion of the precision gearbox market is projected to be aided by the growth of the robot segment.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• In 2020, the Government of India approved the USD 27 billion Production Linked Incentive (PLI) scheme to boost domestic manufacturing and create jobs in the country over the next five years.
• STOBER teamed up with Stäubli Robotics to enhance its robotics portfolio for automotive, medical and pharmaceuticals, food processing, plastics, and electronics industries. Stäubli would receive additional axes for robot production from STOBER to configure its multi-axis robots.