According to a new market intelligence study by Fact.MR, global bearing market growth will hover around 7% despite fundamental weaknesses induced by the COVID-19 pandemic. Market players are readying for opportunities as the reversal of lockdowns has created stimulus in many markets.
However, the uncertainty over a second wave of the pandemic and lack of investor confidence could delay recovery to late 2021 or early 2022, according to the study.
Key takeaways from the bearing market report include:
- Global bearing market is anticipated to witness over 7% CAGR through 2030
- Market growth highly dependent on automotive sector revival
- Ball bearing continues to be the top-selling product
- End-users continue to show marked preference for unmounted variants
- APAC (Asia-Pacific) will maintain a lead as the largest market throughout the forecast period
- Growing use of innovative bearing technology in construction creating new growth avenues
- Steady penetration of EV likely to create opportunities in the long run
“While there has been a gradual reopening of [the] economy, the weakness in [the] automotive and construction sector[s] will continue to impact market growth through [the] first quarter of 2022,” says a report analyst.
EV Sales Can Open Up New Growth Avenues
According to Fact.MR's analysis, use of bearings in electric vehicles (EV) can open up new avenues of growth for market players. While the EV market was growing steadily before 2020, the impact of the pandemic has been felt in this category as well. However, the long-term prospects of the EV market remain bullish, which in turn, is likely to create significant opportunities for bearing demand.
The recent outbreak of the novel coronavirus has slowed down global bearing market growth significantly due to the various restraining factors such as shutting down of manufacturing units during long lock downs, unavailability of enough manpower, scarcity of raw materials, decrease in demand, and others.
Furthermore, the main end-user industries such as automotive, aerospace, construction, and others have been negatively impacted due to COVID-19, resulting in declines in market growth.
According to Fact.MR's market intelligence study, the effect of the COVID-19 pandemic is going to last till the end of this year. However, recovery is expected by the first quarter of 2022.