The global precision gearbox market is estimated to grow at a CAGR of 6.2% during the forecast period. Factors that are augmenting the market growth include increasing automation in the major industry verticals such as food and beverages, automotive, consumer electronics among others. Precision gears are used to smooth the automation processes in these verticals. Moreover, rising application of precision gearboxes in machine tools, packaging, and robotics is also spurring the growth of the global precision gearbox market. Increasing consumption of convenience food is one of the primary factors for the expansion of packaging application in food industry. Convenience food products include frozen pizza, packaged chips, canned vegetables, and others. 

Convenience food is preferred mainly by adult population across the globe. Shifting trend towards fast lifestyle is imposing the need of food items which can be prepared instantly. Prevalent factors for the rising demand of convenience food are relative food prices, time constraints and changing demographic trends. The market demand for convenience food is being supported by amalgamation of fast internet in the form of online delivery services for the consumers. In the US, sit down services at the restaurants are declining with the emergence of online delivery of meals including convenience food. With rapid growth in world population the demand for convenience food is expected which is leading to the expansion in food packaging industry. This may lead to the expansion in the precision gearbox market size across the globe. 

Segmental Outlook  

The global Precision Gearbox market is segmented on the basis of product type, application, and region. On the basis of the product type, the market is classified into parallel, right angle, and planetary. Based on the application, the market is sub-segmented into machine tools, packaging, and robotics. Packaging application segment is estimated to share significant market share in the market owing to the rising demand for convenience food across the globe. 

Global Precision Gearbox Market Share by Product Type, 2018 (%)

Expanding food and beverages industry is escalating the packaging industry

Growth of the packaging industry is primarily attributed to the expansion of food industry. Number for contract manufacturing firms in the food industry is accelerating with the growing demand of food supply particularly in the developing economies of the globe such as China, India and others. Increasing population in these countries is growing the demand for food supply in the packaged form, which as a result, supporting the expansion of contract manufacturing industry. Also, the region of Asia-Pacific is creating the opportunities with potential market and rapid growth. North America is the leading market in food and beverages industry with the food segments such as snack foods, meat and related products, fruits, vegetable and pet food. According to Economic Research Services, meat processing sector comprises the biggest share in the food industry of the US. Moreover, rapid evolution of the industry has also led to the automation in the processes which is further driving the adoption of precision gears in packaging industry. 

Regional Outlook 

Geographically, the study of the global precision gearbox market covers the analysis of four major regions including North America (the US and Canada), Europe (Germany, UK, Italy, France, Italy, Spain, and Rest of Europe), and Rest of the World (RoW). Europe is estimated to contribute significant market share in the global market owing to the well-developed manufacturing sector and food and beverages industry that are creating the demand for precision gearbox. 

Global Precision Gearbox Market Growth, by Region 2019-2025

Asia-Pacific to be a potential region for the market growth

Asia-Pacific is estimated to be the fastest growing region in the global precision gearbox market during the forecast period. Expanding food and beverages industry, pharmaceutical industry and consumer electronics industry is augmenting the demand for precision gears to smooth the automation process. There is a potential scope for contract manufacturing in food industry owing to increasing food & beverage industry in developing countries. According to IBEF (Indian Brand Equity Foundation), India’s exports of processed food and other related products (including animal products) rose at a CAGR of 11.7% and reaching at $16.2 billion during 2011-2016, reflecting significant growth in developing countries such as India and China in near future. 

Market Players Outlook

Some of the key players operating in the global precision gearbox market include ABB Ltd., Bonfiglioli Riduttori S.p.A, Cone Drive Operations Inc., Curtis Machine Co., Dana Inc., Siemens AG and many others. In order to remain competitive in the market, these market players adopt various strategies such as mergers and acquisitions, product offering expansion, geographical expansion, partnerships and collaborations, and others. Players operating in the market are also focusing on the market opportunities to capture the market share. For instance, in September 2018, Bonfiglioli Riduttori S.p.A. aimed at geographical expansion by opening a new manufacturing facility in Chennai, India to cater to the growing product demand in the region. 

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global precision gearbox market. Based on the availability of data, information related to products and services, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.