Drives and Controls January 2023

n GEARS AND GEARBOXES I nteract Analysis has recently released the third edition of its Geared Motors and Industrial (Heavy-Duty) Gears report which covers geared motors and gearboxes for industrial use, but excludes precision gearboxes and loose gear parts. Amidst global economic uncertainty, the market has become more volatile than in previous years. Global sales of geared motors and heavy- duty gears rebounded strongly in 2021 and 2022, with estimated year-on-year growth rates of 16.1% and 7.2% respectively. Total sales were worth $12bn in 2021, but are expected to decline by 0.9% in 2023, before resuming growth (albeit with fluctuations) from 2024 to 2027. Average prices for geared products have increased substantially over the past two years – most dramatically during 2022 when average prices rose by 8–9% as raw material and transportation costs soared. Energy prices in Europe and supply chain issues in the US also contributed to the surge in prices. Many geared motor and gearbox suppliers announced several price increases during 2021 and 2022. Since the second half of 2022, however, cost pressures have started to ease. By November, both global copper prices and the container freight index had fallen back to January 2021 levels. Because of weaker demand going into 2023, raw materials and transportation costs are unlikely to return to last year’s highs. However, energy costs will still play a big role in raising prices, especially for European-made products. Interact expects a 1% fall in average global prices of geared products during 2023, with Emea (Europe, Middle East and Africa) being the only region where prices are predicted to increase – by 1.8%, due to energy costs. Emea is also expected to experience a 5.7% contraction in unit sales during 2023. The energy crisis has dampened demand, especially from high energy-consuming Soaring energy prices are affecting sales and prices of industrial gearboxes and geared motors. Samantha Mou, a research analyst with Interact Analysis, examines the factors driving the market. Energy prices hit industrial gearbox sales and prices Predicted global revenues and average prices for geared industrial products Source: Interact Analysis