Sustained by the favorable outlook of manufacturers toward large-scale production of energy and cost-efficient products, North America precision gearbox market has been forecast to demonstrate a remarkable growth rate in the many years to come. The region is also expected to witness an increase in the efficiency scale of the supply chain activities across numerous industrial sectors, which would lower the costs of these products. Eventually, this would lead to a considerable boost in their sales across the automotive, construction, and healthcare sectors, thereby augmenting North America precision gearbox industry outlook. With novel developments defining the industrial growth of countries such as the U.S., Canada, and Mexico, North America precision gearbox market is expected to experience profitable growth in the years ahead.
U.S. Precision Gearbox Market, By Product, 2016 & 2024, (USD Million)
Companies partaking in North America precision gearbox market share have been implementing conventionally effective business strategies such as product innovations to strengthen their foothold across the region. In April 2017, Varvel SpA, a key player across precision gearbox industry, established a new division in the U.S. With its new product launch - FRP680 gearbox – contributing significantly towards its portfolio expansion drive, the firm is slated to witness high product sales in North America, blessed with an expanding poultry sector. Recently, even Pinion Inc., joined forces with Gates Corp. to collectively launch low-maintenance bicycle gearboxes in North America. The firm’s officials have seemingly predicted that U.S. cyclists will opt for a low-maintenance shifting technology to enable easy, comfortable bike rides. The aforementioned incidences validate the proactive measures undertaken by companies to impact the revenue graph of North America precision gearbox market.
Bringing about astounding innovations in product design and development is one of key tactics adopted by firms in North America precision gearbox industry. With the rise in the globalization, manufacturers are incorporating high-grade advancements in products to improve their operational efficiency. For example, EXSYS Tool Incorporation, a U.S. based manufacturer & supplier of precision gearbox tools, has been supplying high-precision EPPINGER Live, modulator adapter systems, and fixed toolholders to the business players across North American precision gearbox market since the last few years. As on 2017, EXSYS has increased its product offering that now comprise a new type of high-quality EPPINGER gearbox with customized gear-making solutions for the automotive sector. With many other firms likely to follow suit, North America precision gearbox market is projected to record a substantial growth rate.
The competitive landscape of North America precision gearbox industry has witnessed major acquisitions in the last few years. Recently, WITTENSTEIN SE, a key player across the North America precision gearbox market, acquired BARAMUNDI SOFTWARE, a unified endpoint management player located in Augsburg, to automate its product manufacturing processes. In fact, it has been observed that practically every firm across North America precision gearbox market has been trying to expand its manufacturing base with the creation of a novel platform that will help raise its product output. The combined efforts of numerous biggies in the region is expected to chart out a profitable growth path for North America precision gearbox industry.
Gearboxes find massive applications across the automotive, farming, poultry, food, construction, material handling, and healthcare domains. As per analysts, automotive applications will dominate North America precision gearbox industry over 2017-2024, having contributed a revenue of over USD 122 million in 2016. With the use of electric vehicles becoming more popular among the end-users, it is likely that the product will experience an improved penetration across the automotive sector. Estimates also claim food applications to grow at a rate of 6% over the coming seven years, given the numerous innovations in food packaging technology and reduction in the manufacturing duration across the F&B sector.
Regionally, the U.S. has made lucrative contributions towards North America precision gearbox market. The region accounted for USD 332 million towards the regional revenue in 2016 and is slated to dominate the industry over 2017-2024, with a contribution of over 90% towards the North America precision gearbox industry share. Demand for vehicles with precision gearboxes is gaining momentum across the U.S., thereby raising the product sales for original equipment manufacturers and the aftermarket. The high standards set by ANSI (American National Standards Institute) for transportation, robotic applications, and packaging is also expected to spur the product demand in the U.S. Furthermore, the thriving food & beverage sector is also anticipated to complement the growth of this region, inherently impelling North America precision gearbox market.
The implementation of accurate product pricing strategies is likely to lead to customer satisfaction, which would be a major driving force behind the growth of Canada precision gearbox industry. Driven by the rising product consumption in construction & infrastructure and oil & mining activities, the region will contribute substantially toward the overall North America precision gearbox market outlook.
Technological breakthroughs witnessed across the precision gearbox industry are foreseen to impel North America precision gearbox market development. Furthermore, effective pricing methods and Just-in-time strategies adopted by manufacturers along with effective channels of distribution are also expected to contribute toward the regional expansion. According to Global Market Insights, Inc., North America precision gearbox industry is set to hit a revenue of USD 556 million by 2024.