Mechanical Power Transmission Equipment Global Market Opportunities and Strategies to 2033

This report describes and explains the mechanical power transmission equipment market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global mechanical power transmission equipment market reached a value of nearly $176.54 billion in 2023, having grown at a compound annual growth rate (CAGR) of 4.7% since 2018. The market is expected to grow from $176.54 billion in 2023 to $265.61 billion in 2028 at a rate of 8.5%. The market is then expected to grow at a CAGR of 8.2% from 2028 and reach $394.11 billion in 2033.

Growth in the historic period resulted from the rising demand from agricultural machinery needs, rise in disposable income, increasing automotive production and growing industrialization. Factors that negatively affected growth in the historic period include trade restrictions pose challenges.

Going forward, the renewable energy industry surge, favourable government initiatives, strong economic growth in emerging markets and increasing population and urbanization will drive the market. Factors that could hinder the growth of the mechanical power transmission equipment market in the future include shortage of skilled professionals.

The mechanical power transmission equipment market is segmented by type into bearings, joints, clutches, couplings, pulleys, chains and sprockets, gearing and other mechanical power transmission equipment. The bearings market was the largest segment of the mechanical power transmission equipment market segmented by type, accounting for 62% or $109.4 billion of the total in 2023. Going forward, the bearings segment is expected to be the fastest growing segment in the mechanical power transmission equipment market segmented by type, at a CAGR of 8.9% during 2023-2028.

The mechanical power transmission equipment market is segmented by sales channel into original equipment manufacturers (OEMs) and aftermarket. The original equipment manufacturers (OEMs) market was the largest segment of the mechanical power transmission equipment market segmented by sales channel, accounting for 71.3% or $125.88 billion of the total in 2023. Going forward, the aftermarket segment is expected to be the fastest growing segment in the mechanical power transmission equipment market segmented by sales channel, at a CAGR of 9.2% during 2023-2028.

The mechanical power transmission equipment market is segmented by end-user into heavy industry, intralogistics, food, beverages, mining, metals, outdoor and mobile power, renewable energy, oil and gas and marine. The heavy industry market was the largest segment of the mechanical power transmission equipment market segmented by end-user, accounting for 20.7% or $36.6 billion of the total in 2023. Going forward, the outdoor and mobile power segment is expected to be the fastest growing segment in the mechanical power transmission equipment market segmented by end-user, at a CAGR of 8.9% during 2023-2028.

Asia-Pacific was the largest region in the mechanical power transmission equipment market, accounting for 45.5% or $80.37 billion of the total in 2023. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the mechanical power transmission equipment market will be Africa and Middle East, where growth will be at CAGRs of 15% and 14.2% respectively. These will be followed by South America and Eastern Europe, where the markets are expected to grow at CAGRs of 10.2% and 10.1% respectively.

The global mechanical power transmission equipment market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 6.15% of the total market in 2023. SKF was the largest competitor with a 0.93% share of the market, followed by Flender with 0.75%, THE TIMKEN COMPANY with 0.70%, Regal Rexnord Corporation with 0.68%, WEG with 0.61%, TSUBAKIMOTO CHAIN CO with 0.54%, Ingersoll-Rand with 0.54%, Illinois Tool Works Inc with 0.51%, Gardner Denver with 0.45% and Eaton Corporation PLC with 0.42%.

The top opportunities in the mechanical power transmission equipment market segmented by type will arise in the bearings segment, which will gain $58.12 billion of global annual sales by 2028. The top opportunities in the mechanical power transmission equipment market segmented by sales channel will arise in the original equipment manufacturers (OEMs) segment, which will gain $61.2 billion of global annual sales by 2028. The top opportunities in the mechanical power transmission equipment market segmented by end-user will arise in the heavy industry segment, which will gain $18.19 billion of global annual sales by 2028. The mechanical power transmission equipment market size will gain the most in Germany at $16.57 billion.

Market-trend-based strategies for the mechanical power transmission equipment market include focus on introduction of advanced power split transmission for improved performance in agriculture operations, focus on strategic partnerships and collaborations among market players and focus on innovative products.

Player-adopted strategies in the mechanical power transmission equipment market include focus on strengthening business capabilities through new product launches, focus on strengthening business through strategic acquisitions and focus on expanding business through new investments.

To take advantage of the opportunities, the analyst recommends the mechanical power transmission equipment companies to focus on advanced power split transmission development, focus on developing advanced polyurethane timing belts, focus on the bearings market segment, focus on the aftermarket segment, focus on expanding distribution channels, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and focus on targeting heavy industry end-users.