The landscape of the global precision gearbox and geared motor market is undergoing significant transformation and is expected to grow by over 10 percent in 2025, as it recovers from an earlier than anticipated dip in 2023 and 2024. According to the latest data from market intelligence specialist Interact Analysis, strong demand will generate a compound annual growth rate (CAGR) of 7.9 percent - with the market increasing from $3.29 billion to $4.8 billion - between 2023 and 2028.

The precision gearbox and geared motor market has not been immune to the broader economic challenges of the last two years. The slowdown for the market made an early appearance in 2023 and 2024 due to global economic and socio-economic unrest, including inflation and high interest rates. 

The Americas region is expected to show the highest rate of growth over the period from 2023 to 2028, with a CAGR of 10.4 percent, while the APAC region, excluding Japan, is forecast to be the fastest-growing market in 2024. This latter growth is attributed to the region’s manufacturing sector and the rise of local precision gearbox suppliers catering to the burgeoning number of collaborative robot manufacturers in China. 

At the heart of the precision gearboxes market’s resilience is innovation. The emergence of new industries, such as battery manufacturing and humanoid robots, will present fresh opportunities for growth.

The industry projected to see the strongest growth in demand during the forecast period is mobile robots (CAGR of 45.9 percent), where precision gearboxes are commonly used in the drivetrain of the robot; and the second largest predicted increase in demand is in battery manufacturing (CAGR of 13 percent). With over 150,000 mobile robots shipped globally in 2023, the sector is experiencing substantial growth due to increasing demand for more automated fulfilment and warehouse automation resulting from the continuing trend towards e-commerce. 

Despite strong growth in mobile robotics, the industrial and collaborative robot markets remain the largest consumers of precision gearboxes worldwide. Regional variation exists, but overall, these markets experienced a slowdown in market growth in 2023, but demand is expected to pick-up again worldwide fairly quickly. In 2023, the market value of gearboxes sold into the industrial and collaborative robots’ segment was just over $1 billion, making up 31 percent of the total precision gearbox market. By 2028, this segment is expected to grow to $1.33 billion.

interactanalysis.com