Market Trends of Industrial Bearings Industry
This section covers the major market trends shaping the Industrial Bearings Market according to our research experts:
Automotive Sector to Hold Significant Market Share
- The automotive bearings market in India is expected to benefit from the shift of production lines of global automotive bearings manufacturers to emerging economies. According to IEA, 11.3 million battery electric vehicles (BEVs) were in use globally in the previous year. More than four million new battery-electric vehicles were added to the worldwide fleet.
- In May 2021, Nachi-Fujikoshi, a prominent manufacturer of automotive bearings, announced its plan to move its production of general-purpose bearings from Japan and Taiwan to Thailand. The move was to reduce production costs for automotive bearings. The recent introduction of production-linked incentive (PLI) schemes for automotive components by the government of India is expected to play a crucial role in attracting global players to set up manufacturing facilities in the country.
- The growing demand for lightweight and durable bearings from the automotive industries is leading prominent bearing manufacturers such as SKF India, Schaeffler India, and NRB Bearings to focus on adopting new raw materials instead of traditional high-grade steel.
- For instance, SKF India manufactures automotive bearings with alloys that are 10%-12% lighter than traditional bearings made from high-grade steel. The vendors are increasing spending on research and development for lightweight technology development.
- The challenge is that the number of bearings in EVs will be fewer than in its counterpart due to eliminating the engine and its parts. The bearings will average fall to about 40 per vehicle, depending on the EV configuration. However, there will be an opportunity to develop high-quality bearings in terms of tolerance and heat management for high-speed electric motors in EVs. The requirement of smart and high-speed bearings in EVs will be a significant margin enabler for the bearing manufacturers who are continuously facing pricing pressure on conventional bearings used in ICE-based vehicles.
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Asia-Pacific to Witness Significant Growth
- Bearing manufacturers are adopting digital transformation as an essential part of the strategy to keep up with the increasing demand. For instance, National Engineering Industries Ltd digitalized its supply chain and inventory management, and the company implemented predictive maintenance using data analytics. The company announced that it aims to digitalize its manufacturing operations in the coming years. These developments are crucial for the growth of India's automotive bearings market.
- One of the primary drivers behind the recent measures of India to accelerate the transition to e-mobility is the rising pollution, increase in prices for oil imports, and international pledges to battle global climate change. According to Invest India, India committed to an aspirational goal of having around 30% of private automobiles as EVs by 2030 at the Conference of the Parties 26 (COP26) Summit.
- The bearing industry is growing at a decent pace across the world, with new automobiles being introduced and rising industrial production. Several developments are happening to the size, quality, and speed of bearings due to numerous new applications in different segments. Besides this, the new generation bearings are lighter, faster, and sustainable, which are the emerging requirements of the industry. The new-age bearings with sensors enable users to make data-based decisions, making the processes even more efficient.
- According to Invest India, in September 2022, India's automotive industry was worth around USD 222 billion. The EV market in India is estimated to be valued at USD 2 billion by 2023 and USD 7.09 billion by 2025. According to the Ministry of Road Transport and Highways, there are a total of 13,92,265 EVs on Indian roads as of August 2022. By 2030, this is likely to increase by 45-50 million EVs. The developments in the electric vehicle segment are fuelling the demand for bearings.
- Many conventional automotive players and oil companies are significantly investing to boost EV demand. To name a few, Skoda revealed its plan to produce EVs locally in India in 2021, and IOC stated its plans to create 22,000 EV charging stations over 3-5 years. These factors are driving the demand for industrial bearings.
- With the Indian government announcing the development of major infrastructure and industrial projects, the bearing market is expected to grow. The spherical roller bearings are expected to continue to dominate the market, riding on their high load-carrying capacity and ability to operate in the face of challenges and misalignments, enabling enterprises to achieve lower maintenance costs and longer bearing service life.
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