Industrial Gearbox and Gear Motors: European Manufacturers Are Challenged by Intense Competition and Low Margins, Finds Frost & Sullivan

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• Publié par: frost-sullivan
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• Langue: English

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Industrial Gearbox and Gear Motors: European

Manufacturers Are Challenged by Intense

Competition and Low Margins, Finds Frost &

Sullivan

PR Newswire

LONDON, June 20, 2012

- Nurturing strong customer-manufacturer relationships will be key to

maintaining growth

LONDON

,

June 20, 2012

/PRNewswire/ -- Although mature, the European

gearbox and gear motors market has consistently recorded moderate growth,

except in 2009 during the global recession. The market is highly competitive

with very low margins. Buyers are becoming more sensitive and manufacturers

can no longer rely only on low production costs to gain a competitive edge.

New analysis from Frost & Sullivan (http://www.motors.frost.com),

Gearbox

and Gear Motors Market

, finds that the market in

Europe

earned revenues

of

euro 2,928.1 million

in 2010 and estimates this to reach

euro 3,721.15

million

in 2017.

The need to cut costs and improve productivity is driving European

manufacturers to invest in more efficient power transmission technologies.

They are also focusing on product differentiation and technological innovation

to ensure the sustained use of geared components in future.

"Economic stability, with its attendant increase in consumer confidence and

spending, will push the gearbox and gear motors market back on track," notes

Frost & Sullivan Research Analyst Ramasubramanian Natarajan. "Rising

investments in major end-user segments such as wind power, food & beverage

and material handling will provide a fillip to geared components in the short-

and medium-term."

In particular, heightened environmental concerns and escalating energy costs

will promote the use of wind power farms – a consistent end-user segment –

resulting in greater demand for gear solutions. At the same time, simplicity of

design will facilitate the widespread acceptance of gears technology across

other applications and end-user segments. This technology is perceived to be

the most cost-effective for industrial mechanical power transmission.

"Modular design and flexibility in usage has boosted the cost-effectiveness of

geared products," adds Ramasubramanian. "A substantial customer base for

gearbox and gear motors is expected to impact the growth statistics of the

market."

The prevalence of gearbox and gear motors is, however, being threatened by

alternative and advanced technologies like variable frequency drives.

Widespread availability, falling prices and increasing awareness about the

advantages of electric drives are motivating end-users of gear products to

adopt these newer technologies.

"This has been exacerbated by the fact that most potential applications have

already been identified and satisfactorily addressed by gearbox and geared

motor manufacturers," remarks Ramasubramanian. "Consequently, they have