Application-wise domestic demand for gears and gearboxes in fiscal 2019 (Rs 48.5 billion)

      
    

Ve
a)

lm Wind power

@ Material handling

Bein Cement

m Conventional power

m= Metals

Note: Others include elevators, printing machines, plastic extruder, rubber, chemical, pharma, plastics, marine, crane,
packaging, etc.
Source: CRISIL Research, industry

Over the forecast period, wind power is expected to continue to drive demand for gearboxes over fiscals 2020-
2025. CRISIL Research expects wind power capacity additions over the period at 15-17 GW compared with 15
GW over fiscals 2014-2019.

Demand for gears is expected to be robust from the material handling equipment required for slew of infrastructure
projects including roads, metro construction, river-linking and railways over the forecast period. Demand from
these sectors is expected to increase at 4-5% CAGR. In addition, increased mining activity is expected to support
gear and gearbox demand over the forecast period.

Demand from new conventional power projects is expected to remain lackluster due to the shift in focus towards
renewable energy till fiscal 2023. Demand from new steel and cement plants is expected to remain benign due to
lesser pace of capacity additions over fiscals 2019-2023 compared with the past five years. However, investments
in long steel products capacity and orders from the defence sector are expected to support demand for gear and
gearboxes.

Geared motors outpace gearbox growth owing to convenience in commissioning

Gearboxes accounted for 54-56% of the total gears and gearboxes market in fiscal 2020, followed by geared
motors with 24-26% share. The balance 19-21% belonged to loose gears, gear box housings and coupling
products. Demand for geared motors increased at 8-10% CAGR and for gearboxes at 6-8% CAGR between fiscals
2015 and 2020. Geared motors have seen growing preference owing to plug-and-play design vis-a-vis gearboxes,
which requires installation of electric motors separately. Geared motors are particularly preferred in <125 kW
power output applications. Loose gears primarily find applications in railways and textile machinery, and as a
replacement product across all industrial applications.

Component-wise domestic demand for gears and gearboxes in fiscal 2020 (Rs 49.7 billion)

Gearbox,
54-56%

Geared
Titel olson
PAs

 

Source: CRISIL Research, industry

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