Mechanical Power Transmission Equipment Market Report 2026

The mechanical power transmission equipment market size has grown strongly in recent years. It will grow from $70.31 billion in 2025 to $75 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to industrial automation expansion, growth of manufacturing machinery, widespread use of mechanical drives, demand for torque control, equipment standardization.

The mechanical power transmission equipment market size is expected to see strong growth in the next few years. It will grow to $100.75 billion in 2030 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to energy efficiency regulations, demand for durable transmission systems, electrification of machinery, predictive maintenance adoption, growth in heavy industries. Major trends in the forecast period include shift toward high-efficiency transmission systems, growing demand for low-maintenance components, adoption of modular power transmission designs, increased use in heavy industrial machinery, focus on vibration and noise reduction.

The growth of the renewable energy industry, including wind and solar power generation, is expected to propel the mechanical power transmission equipment market going forward. Renewable energy refers to energy derived from naturally replenished sources that can be used without depleting their availability over time. Renewable energy production depends on mechanical power transmission systems to convert rotational energy into electricity, driving demand for specialized equipment such as gearboxes and drive systems. For example, in April 2023, according to a report published by the National Renewable Energy Laboratory (NREL), a U.S.-based research institution focused on advancing renewable energy and energy efficiency technologies, global photovoltaic (PV) installations reached 231 gigawatts direct current (GWdc), totaling 1.2 terawatts direct current (TWdc) cumulatively in 2022. China’s annual PV installations increased by 57%, accounting for 42% of global demand, driven largely by distributed PV. Annual installations are projected to exceed 300 GW by 2023 and surpass 400 GW by 2025. Therefore, the growth of the renewable energy industry, including wind and solar power generation, will fuel the mechanical power transmission equipment market.

The rise of government-led initiatives following the Paris Agreement on climate change is expected to drive global demand for electric vehicles during the forecast period, thereby supporting the mechanical power transmission equipment market. These initiatives aim to accelerate the shift from fossil-fuel-based transportation to cleaner mobility solutions. For instance, China aims for electric and hybrid vehicles to account for at least 20% of vehicle production by 2025. Similarly, Norway targets 100% of all vehicle sales to be electric by 2025, while California’s requirement for green vehicles to comprise 35% of sales by 2025 has been adopted by nine U.S. states. The anticipated increase in green vehicle production, supported by strong governmental policies, is expected to encourage wider consumer adoption of electric vehicles and reduce reliance on fossil-fuel-powered automobiles. Therefore, government-led initiatives aligned with the Paris Agreement will drive the mechanical power transmission equipment market during the forecast period.

Major companies in the mechanical power transmission equipment market are focused on developing innovative products such as Synchromotion polyurethane (PU) timing belts to gain a competitive advantage. Synchromotion refers to a PU timing belt designed for reliable power transmission, featuring wear-resistant PU material, minimal maintenance requirements due to its high-tensile-strength steel cord tension member, and strong suitability for demanding power transmission applications. For example, in February 2023, Continental AG, a Germany-based sustainable energy component manufacturing company, introduced Synchromotion, a new generation of polyurethane timing belts within its Truly Endless product line. These steel-cord-reinforced PU belts are known for their high flexibility, abrasion resistance, and long-lasting durability. The polyurethane cover further enhances power transmission efficiency, outperforming alternative materials.

Major companies operating in the mechanical power transmission equipment market are Hitachi Ltd., Siemens AG, General Electric Company, Mitsubishi Heavy Industries Ltd., ABB Ltd., Eaton Corporation plc, Nidec Corporation, Schaeffler Technologies AG & Co. KG, Illinois Tool Works Inc., SKF Group, Sumitomo Heavy Industries Ltd., Gardner Denver, WEG, Regal Rexnord Corporation, The Timken Company, Gates Corporation, Tsubakimoto Chain Co., Comer Industries S.p.A., Andantex USA Inc., Boston Gear LLC, Altra Industrial Motion India Pvt. Ltd., Renold Plc, Bonfiglioli Transmissions Private Limited, Dana Motion Systems Italia S.r.l., Flender, NTN Corporation.

Asia-Pacific was the largest region in the mechanical power transmission equipment market in 2025. Western Europe was the second largest region of the mechanical power transmission equipment market. The regions covered in the mechanical power transmission equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the mechanical power transmission equipment market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The mechanical power transmission equipment market consists of sales of shaft couplings, chain drives, gear drives, belt drives, and power screws. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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