Gearbox and geared motor makers take global view

The European market for gearboxes and geared motors is facing intense competition from Asian and eastern European manufacturers that are luring end users through competitive pricing strategies.

The European market for gearboxes and geared motors is facing intense competition from Asian and eastern European manufacturers that are luring end users through competitive pricing strategies.

However, the growing need for planetary designs and the sustained demand from mechanical handling, wind energy, and food and beverages end users, is expected to increase revenues in the European gearboxes and geared motors market from Eur 2.48 billion in 2004 to Eur 3.13 billion in 2011.

The increase in energy prices and the need to reduce dependence on the Middle East for fossil fuels has led to the development of inexpensive and renewable wind energy applications, which is likely to lead to a demand for gearboxes.

Further, the need to reduce costs and improve productivity is driving the manufacturers to invest in more efficient power transmission solutions, which are expected to augment demand for planetary solutions and boost the growth of the European gearboxes and geared motors market.

"The anticipated expansion of the packaged food industry, with the modernisation and diversification of existing factories across Europe, will provide growth opportunities for gearbox and geared motor manufacturers", says Danny Solomon, Research Manager at Frost and Sullivan.

The modular design of off-the-shelf gearboxes and geared motors, which can be used in different applications, is another catalyst likely to drive the market.

The growing demand for large-scale highly engineered gearboxes is expected to drive the European gearbox market from Eur 1.33 billion in 2004 to Eur 1.72 billion by the end of 2011.

The market for helical gearboxes (which accounts for the largest share of the total European gearbox market) is poised for growth as customers' demands continue, due to the increased efficiency and improved reliability of these gearboxes.

The demand for planetary gearboxes also continues to rise, despite being more expensive in comparison to helical ones.

The growing importance of specialised planetary gearboxes is anticipated to generate greater revenues.

However, the inefficiency of the technology associated with worm gearboxes leaves limited prospects for significant growth of this market and revenues are likely to remain modest.

The need for an integrated solution combined with a general preference for geared motor solutions is expected to fuel revenues in the geared motors market from Eur 1.15 billion in 2004 to Eur 1.41 billion in 2011.

The geared motors markets in France, Scandinavia and Germany, which rely heavily on applications groups such as mechanical handling and food and beverages, will also assist in promoting the importance of geared motors in the region.

The availability of different designs in helical geared motors, such as in-line and helical bevel solutions, make them suitable for a broad range of applications and this is likely to result in increased revenues.

Planetary geared motors, though expensive in comparison to worm geared motors, are also expected to enjoy greater demand due to their suitability in larger applications.

The European gearboxes and geared motors market is also witnessing growth in countries that do not represent industry-based economies and which offer lower labour costs.

Although Germany, Italy and France have contributed significantly to the European gearboxes and geared motors market, other European areas such as Scandinavia, Benelux and Iberia offering lower labour costs are emerging as sources of revenue.

However, they are unlikely to challenge the dominance of the larger markets, notably Germany, even in the long term.

The German gearboxes and geared motors market, which represents nearly half of the total market revenues, is likely to remain the largest source of revenue.

Despite the country's economic slowdown during 2001 to 2003, the versatile German gearboxes and geared motors market is expected to rebound in 2006.

The Italian gearboxes and geared motors market is also expected to grow despite increasing competition from countries such as China and India.

Gearbox and geared motor manufacturers have also discovered new applications in France, supporting expansion prospects.

Growth in the UK market will depend on the established manufacturing sector and the ability to effectively compete with regions that can offer a less expensive workforce.

Despite this, the overall market in the UK is expected to increase from Eur 186.1 million in 2004 to Eur 228.0 million in 2011.

Countries such as Scandinavia, Iberia, Benelux, Switzerland, Austria, Greece and the Republic of Ireland are also likely to contribute to higher demand levels.

Future strategies should be focused on global manufacturing to strengthen international branding and achieve greater market penetration.

"Manufacturers should focus on building and maintaining end-user demand, enhancing their product portfolio and developing the expertise to offer improved services to complement their products", states Solomon.

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