The world bearing market will reach 101 billion US dollars by 2018

Bearing Market in 2018a

Bearing Market in 2018aAccording to the forecasts of the U.S. consulting firm Global Industry Analysts, Inc. (GIA), the volume of sales in the global bearing market will reach 101 billion US dollars in 2018. According to analysts, the bearing market will reach new heights because of the recovery of the basic industries in combination with favorable trends on the investment front.

The demand for bearings is dynamic because the bearings are closely linked to global GDP trends through extensive use of means for production and engineering. However, because of the financial crisis that began in 2008, the turnover in the market dipped seriously both in turnover and in types. Despite the attempts of recovery in 2010, as well as beginning of 2011, combined with the debt problems of the Euro area, the slow recovery of the U.S. economy and the contraction of the Japanese economy; the growth prospects of the bearing industry began to restrain in 2012. This negative effect of reduced growth in major developed countries seeped in emerging economies such as China and India.

Changing Hub bearingsAccording to the forecasts of sales for the global market, the Bearing industry will reach 101 billion US dollars in 2018. The main roles will be played by China.

But despite the fragile state of the financial markets and stagnation in the short term on the end market, the gradual increase in global economic activity together with the weakening of the financial crisis in the long term can push up the demand for bearings. Improving the balance of the non-financial corporate sector and sustainable leveraging by banks and households, is expected to help the smooth flow of capital and the gradual strengthening of the positions of durable goods and applications that activates the demand for bearings. In addition, a  trend on consumption reduction will affect the price of the bearings themselves because of low prices for raw materials and increased competition between bearing companies, which will be forced to reduce their profits.

Key industrial sectors and consumers will continue to push the production of industrial equipment and automotive, while aerospace and related industries will have a stagnation. The increase in demand for railway equipment, electronics, aircraft and motorcycles in the developing regions will spur record sales growth for bearings and related products. This will be particularly in the Asia-Pacific markets, where the leading role will be played by China.

The greatest growth will be thus in the Asia-Pacific region, in the period between 2011 and 2016. The Market will rise there by an average of 10% per year and will reach $ 54 billion for bearings turnover. That will be more than half of the global total demand. China needs to grow faster than other countries in the region: Sales increase by 13% per year by expanding automotive industry and construction machinery, coupled with a strong after-sales service of industrial equipment and vehicles. In 2016, sales in China amounted to one third of the world total, and in 2021 will exceed the sales in North America and Western Europe combined.

China wind turbine repairThe greatest growth will be thus in the Asia-Pacific region, in the period between 2011 and 2016.

Rapid industrialization and urbanization in China over the past decade have created a huge demand for bearings in various industries, such as industrial equipment, electronics and cars, making China the world’s major consumer of bearings. Nevertheless, the negative situations in the major developed countries also affected China. In addition, the recovery of the domestic bearing market is started, after the deceleration of the national economy and the policy tightening measures adopted by the Chinese government earlier this year.

Demand for bearings in developed markets, including large regions as Japan, Western Europe and the U.S., will grow faster than in the period 2006 -2011. In most of these countries, general manufacturing, and especially automotive, fell sharply during the period 2007-2009. Since 2009, this has become stabilized, and in 2011 it went up slowly. Industrial production continues to recover, and the income from the sale of bearings will be much higher than now. The growing demand for industrial equipment and a variety of durable goods will contribute to rapid acceleration of sales for bearings by the original equipment manufacturers operating in Japan, the U.S. and Western Europe.

DieselEngineDemand for bearings in developed markets, including large regions as Japan, Western Europe and the U.S., will grow faster than in the period 2006 -2011.

According to GIA, there are currently 235 large bearing companies on the global market (including 294 subsidiaries). The list includes companies as EnPro Industries Inc., Federal-Mogul Corporation, JTEKT Corporation, NSK Ltd., NTN Corp., Igus, LM-Tabell Inc., Minebea Co, Ltd., Misumi USA Inc., RBC France SAS, Schaeffler Technologies, SKF Group, Timken Company and Spyraflo Inc. The most of the players have in general more than 150 companies in France, Germany, Great Britain, Italy, Spain and other European countries.

 

Does your company have a strategy for the changes in the global bearing market? Contact Bearing News today in order to reinforce your online and offline branding strategy.

source: Prompk