LAMEA 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(Brazil, Mexico, Argentina, Chile, Colombia, UAE, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, Rest of LAMEA) Forecasts, 2024-2032

Market Overview

The LAMEA Precision Gearbox market size is expected to reach a valuation of USD 72.74 million by 2030, growing at a CAGR of 7.45% during the forecast period (2022–2030).

A precision gearbox is a mechanical device with greater tolerances than a standard gearbox. These devices are machined to have a better than 90% efficiency by varying the torque and managing the speed within exact limitations. They help save space because they have small component designs and are made up of two or more gears. They perform well with low-frequency vibrations and are appropriate for low-speed jobs. Precision gearboxes are becoming more common in a variety of areas, including robotics, medicine, machine tools, material handling, and others. These gears are designed for applications requiring extreme precision and accuracy. As a result, they're manufactured to extremely fine tolerances and have a high efficiency of over 90%. They're also more useful than standard gearboxes due to features such as quiet operation and small size. As a result, they're used in machine tools, robotics, food and beverage production equipment, and material handling equipment.

Middle East and African Precision Gearbox market size is expected to reach a valuation of USD 59.27 million by 2030, growing at a CAGR of 7.74% during the forecast period (2022–2030). During the study period, the Middle East and Africa precision gearbox market is expected to grow at a stable CAGR of roughly 7.74%. Players in the industry are diversifying their service offerings in order to increase revenue, which is expected to drive segment growth through 2027. Over the projection period, the growth of the medical sector in the Middle East and Africa is expected to improve product demand. The growing manufacturing sector in Latin America is responsible for the increased demand of these precision gearboxes in the region.

Market Dynamics

Key market drivers

• Growing Industry Automation: When a human does a task, the margin of error can be as high as 10%, however with a process automation platform, the margin of error can be as low as 0.00001%. The rising automation of industrial processes focuses not only on efficiency and profitability but also on increasing flexibility and dramatically enhancing the quality of manufacturing processes, reducing work margins of error. Precision gearboxes are employed in industries to automate various processes, and their demand is predicted to grow in the next years in the LAMEA region as automation increases.
• Increase in Robotics: Robotics is becoming more common in industrial settings, allowing corporations to deploy the technology across a wide range of industries and stages of production. Several user-friendly and intuitive manufacturers are also installing and upgrading robots and automation technology. As a result, the demand for robots in industrial settings is expected to rise. Similarly, labour costs are rising, and a scarcity of human skills is fuelling the demand for robots. In traditional articulated arm robotics, precision gearboxes are increasingly being used to transfer rotational forces between axles. The gears required in robotics are found in the joints of the robot arms. The gearboxes govern the speed and direction of the action. These precision gearboxes link the motor, which creates the driving power, to the machine component that moves the object. As a result, as the robotics sector evolves internationally, more precision gearboxes are expected to be used, fuelling a market expansion in LAMEA over the forecast period.

Key market restraints

• Increasing Demand for Direct-Drive Actuators: Demand for direct-drive actuators in robotics is growing in LAMEA for industrial and non-factory applications, owing to benefits such as reduced system complexity, cost-effectiveness, and maintenance service requirements. Amplified magnetics, structural-magnetic synergy, and thermodynamic anomaly are all new aspects in the actuators, allowing the mechanical design to function without gears. As a result of the removal of the gearbox and the further development of direct-drive actuator systems, the product is expected to improve machine performance and gain high demand. As a result, the precision gearbox market is projected to be choked.

Key market opportunities

• Increasing demand from the healthcare industry: The healthcare industry is one of the world's most important markets, touching every part of our lives. Precision gearboxes are used in a range of applications and operations in the healthcare business. They assist manufacturers of imaging equipment such as X-rays and NMR, softly and accurately move patient beds, and deliver trustworthy performance in prescription drug administration. The medical sector has seen a significant increase in product demand, which is expected to continue during the projection period, giving promising opportunities for the market's major players in LAMEA

Regional Analysis

By 2030, the LAMEA Precision Gearbox market is anticipated to be worth USD 72.74 million, with a CAGR of 7.45% over the forecast period (2022–2030). Furthermore, the market for Precision Gearboxes in the Middle East and Africa is estimated to reach USD 59.27 million by 2030, rising at a CAGR of 7.74% over the forecast period (2022–2030). The Middle East and Africa precision gearbox market is predicted to grow at a steady 7.74% CAGR during the study period. To generate revenue, industry players are broadening their service offerings, which is likely to fuel segment growth through 2027. Product demand is predicted to improve as the medical industry in the Middle East and Africa grows throughout the forecast period. Increased demand for these precision gearboxes in Latin America is due to the region's growing manufacturing industry.

During the projection period, the packaging sector in Brazil is expected to increase significantly. The packaging industry offers potential for the application of innovative technologies and materials that can extend the life of a product. High growth rates are predicted across the region as a result of rising personal incomes, resulting in increased demand for a wide range of products, which, in turn, promotes growth for packaging manufacturers, increasing the need for precision gearboxes in the Brazilian region.

Due to its application in heavy construction machines and vehicles for better functionality, precision gearbox machinery is in high demand in the Middle East countries of the UAE, Saudi Arabia, Oman, and Jordan. In these areas, high-precision worm gears, precision cycloidal gearboxes, and high-torque planetary gearboxes are frequently used.

In Africa, the demand for food and beverages will continue to rise as the population grows. In 2021, the African food and beverage industry's E-Commerce sector is predicted to generate €1.15 billion in revenue. Sales growth is predicted to average 18.19% from 2021 to 2025. In 2025, the predicted growth would result in a market volume of around €2.38 billion. South Africa is Africa's major food and beverage market, with a strong production capacity and excellent agricultural and agro-processing skills and due to this the demand is enhanced for these precision gearboxes in the region as it is frequently used in Food and Beverage Industry.

Segmental Analysis

In LAMEA Precision Gearbox Market is classified into three categories: product, application, and geography.

The precision gearbox market has been segmented into harmonic, cycloidal, and planetary segments based on product. With a high growth rate, the planetary category is likely to dominate the market in the region. Planetary precision gearboxes are small but powerful due to their rolling power. The burden of responsibility might be shared among the planet's gears as well. These planetary gears also have less backlash and a good torque-to-weight ratio. As a result, over the projected period, the market is expected to be driven by its use in robotics.

Military and aerospace, food, beverage, and tobacco, machine tools, material handling, packaging, robotics, medical, and other applications are all part of the precision gearbox business. During the projection period, the robot segment is expected to lead the region's market with respectable revenues.

Precision gearboxes are most commonly used in the robotics industry, which is expected to grow rapidly in the next years. This is due to the growing usage of humanoid artificial joints and limbs, as well as manufacturing robots, both of which rely on precision gearboxes to balance and conduct very exact movements for a variety of services and industrial tasks. Precision gearboxes are commonly used in the robotics industry since this business requires precise positioning, which precision gearboxes give.

As a result, the increase in the robot segment is expected to boost the expansion of the precision gearbox market.

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

• Recently, to expand its robot’s portfolio for the automotive, medical and pharmaceuticals, food processing, plastics, and electronics industries, STOBER partnered with Stäubli Robotics. STOBER would provide Stäubli with additional axes for robot production, allowing the company to configure its multi-axis robots.