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Growth returns to global geared products market
After sliding for two consecutive years, global revenues for industrial geared products are forecast to grow by 4.7% this year to reach $13.2bn, according to a new study from IHS. However, this growth will still leave the market about 0.7% below its previous peak level, achieved in 2011, following two years of growth above 15%.
IHS defines the market for industrial geared products to include gearboxes and geared motors used in stationary applications.
In 2012, this market suffered as a result of the poor economic situation in the Eurozone and the fallout from overproduction in China, resulting in a 5% drop in global revenues. The American market provided one bright spot for geared products in 2012, expanding by 7%.
The poor performance of the global geared products market continued into 2013, when revenues declined for a second year, although the rate of decline slowed to just 0.1%. Sales were constrained by limited demand from the cement, aggregates and mining sectors, which accounted for 21% of market revenues in 2013.
IHS is more optimistic about the outlook for 2014 and expects growth to accelerate in global machinery production and capital expenditure. It predicts that the recovery will occur faster in the discrete sectors, while growth in the process sectors is likely to remain subdued.
The Asia-Pacific market is the largest regional market for geared products and is also expected to lead in terms of growth in the near term. However, the slowdown of the Chinese economy has lowered growth rates significantly from the double-digit rates seen in this region before 2012. During 2014, IHS expects revenues in the Asia-Pacific region to climb by 5.2%.
