Helical/ bevel-helical gears dominate the market

Helical/ bevel-helical gears dominated demand for gears with 58-60% share in fiscal 2020, owing to its high
efficiency and maintenance-friendly operation. These gears clocked 7-8% CAGR in the past 5 years, replacing
worm gear applications.

Planetary gears account for 27-29% of demand, with wind, sugar, and material handling equipment as major
applications. These gears clocked 7-9% CAGR between fiscals 2015 and 2020. The sugar industry particularly
moved from helical to planetary gears for better crushing and power saving. Planetary gears are also preferred in
plants with space constraints.

Worm gears form 10-15% of the demand, with cranes, elevators, and escalators as major applications. This
category has been losing share, de-growing because of its lower efficiency.

Over the forecast period, the worm gear market is expected to continue to de-grow at negative 6-8% CAGR due
to higher efficiency of helical/ bevel helical and planetary gears. Helical/ bevel-helical gears are forecast to register
8-10% CAGR, whereas planetary gears are likely to post 11-13% CAGR, driven by growing acceptance of
planetary gears.

Competing gearless technologies such as direct drive systems, hydraulic, and electromagnetic drives are not likely
to be a threat to the gear and gearboxes industry over fiscals 2020-2024, due to factors such as lack of economic
viability, maintenance capability, durability and reliability.

Import substitution drives customised demand

Customised gears and gearboxes form 20-25% of demand, while standardised or catalogue products form the rest.
Customisations in terms of box housing, mounting, gearing train, and changes to shafts fall under the customised
gear and gearbox market. Substitution of imports by locally customised products has driven demand in this
segment. Wear and tear replacement of spares in imported machinery by industrial users is also a contributor. The
share of customised gears in the gear and gearboxes market is, however, likely to remain stable over fiscals 2019-
2023.

Imports form ~35% of demand

Foreign players are primarily engaged in import of components and local assembly of gearboxes and geared
motors. They dominate the geared motors segment, whereas domestic players dominate the gearboxes market.

The market is fairly organised and competitive

The market for gears and gearboxes is fairly organised and competitive, with the top 15 players commanding
~70% share. The unorganised segment accounts for 8-10% of demand, largely catering to loose gears demand in
textiles and crane applications. Elecon Engineering, Premium Power Transmission, Shanthi Gears and New
Allenberry Works are key Indian players. Major foreign players include ZF Wind Power, Bonfiglioli
Transmission, Siemens, SEW and Nord Drive Systems. The windmills sector is particularly dominated by foreign
gearbox manufacturers.

Key drivers for Indian gear and gearbox markets

Steel sector demand to grow at subdued pace between fiscals 2020 and 2024

The domestic steel industry rose a moderate 1.4% on-year in fiscal 2020, supported by a 3.3% on-year rise in non-
alloy steel demand. In contrast, alloy steel demand plunged ~21% on-year on account of declining automobile
production. Also, demand for flat steel fell ~3% on-year, whereas that of long steel rose 5.5% on-year. The Covid-
19 has created the perfect storm for an economy that was anticipating a mild recovery in fiscal 2021. Along with
external factors, such as weak global demand, supply chain disruptions, and worldwide financial shocks, the
economy has been buffeted by lockdowns, factory shutdowns, reduced discretionary spending, and delayed capex
cycle. These are affecting construction activities and automobile production, and thereby, steel demand.

154
