What’s in store for the Gear Manufacturing Market in India in the near future?
As a result of India’s growing population and increasing income levels, industries such as Oil and Gas, Textile, Food and Beverage, and Pulp and Paper are in the process of expanding and renovating their facilities to meet with the increased needs of the people. These industries all require the same fundamental component: gears.
As such, the Gear Manufacturing Market in India is flourishing more than ever before, and is set to continue to rise at a CAGR of 9.6 percent for the 2012-2016 period so long as gear manufacturers are able to overcome two big challenges.
#1. Increase in Capital Expenditure
Gear manufacturers use an array of materials in their products, including stainless steels, hardened steel, cast iron, aluminum, brass, bronze, and other metal alloys. The prices of these materials are increasing continuously and it is difficult for vendors absorb the burden of these costs, while maintaining profit margins.
#2. Lack of Product Differentiation
Several regional and international gear manufacturers offer almost identical products. The problem is that as we mentioned, profit margins are becoming increasingly narrow which means there’s very little room adjust product prices in order to maintain market share in this intensely competitive market. With that, a lot of vendors have hit a roadblock in their efforts to gain market share through differentiation.
So what does the gear manufacturing process come down to in India? Well, it really comes down to two things.
The development of industry specific gears, and an increase in technical expertise.
Vendors in India such as Ashoka Machine Tools and SRS Gears and Sprockets have recently started offering customized industry-specific gears to meet the specific needs of the end-users. They offer various types of gears in all sizes, shapes, designs, and speed ratios according to the specific requirements of industrial applications. This is sure fire way increasing market presence by targeting niche and specialized end-users.
Along similar lines, several smaller scale gear manufacturers in India have begun focusing on developing superior-quality gears for various industrial gear manufacturing processes. CAD, CAE, FEA, and CFD can all be applied to help manufacturers create prototypes of best-in-class gears. Naturally, a better gear is going to bring in more revenue than a competitor’s subpar product.
But are these trends really enough to keep the Gear Manufacturing Market in India rising for the next few years?
TechNavio’s analysts say yes, especially when you throw some of these other positive factors into the mix.
The automotive industry for instance, is booming more than ever before and requires-you guessed it-gears. There has also been a huge surge in the outsourcing of other country’s manufacturing activities to India, which demands once again, a lot of gears.
With all this in mind, it seems safe to say that the Gear Manufacturing Market in India won’t be going anywhere but up in the years to come!
For more info, view our 2012-2016 report on the Gear Manufacturing Market in India.
