Gear Hobbing Machine Market Trend, Share, Growth, Size Analysis and Forecast 2030

Gear Hobbing Machine Industry Prospective:

The global gear hobbing machine market size was worth around USD 675.42 million in 2022 and is predicted to grow to around USD 861.37 million by 2030 with a compound annual growth rate (CAGR) of roughly 3.1% between 2023 and 2030.

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Gear Hobbing Machine Market: Overview

A gear hobbing machine is used during gear manufacturing. These machines use a multi-tooth, rotating cutting tool which is also known as a hob to generate teeth on different types of gears including helical gears, spur gears, sprockets, and splines. As compared to any other method of cutting gears, the use of a hobbing machine is the most preferred due to the high rate of accuracy obtained using the tool. The process including the use of these machines includes setting up the gear in its blank format. It is done by placing it on the spindle of the machine.

Once the machine starts functioning, the hob comes in contact with the gear cutting it as it proceeds further. There are types of movement involved during the process called indexing and feeding. The axial movement of the hob along the line of the gear and the hob is known as indexing while moving the object toward the hob is called feeding. It is important to keep applying a lubricant or a coolant to the machine to ensure the machine does not overheat. The demand for gear hobbing machines will register considerable growth during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global gear hobbing machine market is estimated to grow annually at a CAGR of around 3.1% over the forecast period (2023-2030)
• In terms of revenue, the global gear hobbing machine market size was valued at around 675.42 million in 2022 and is predicted to grow to around USD 861.37 million, by 2030.
• The gear hobbing machine market is projected to grow at a significant rate due to the growing demand for petroleum products
• Based on product segmentation, the horizontal hobbing machines segment was predicted to show maximum market share in the year 2022
• Based on application segmentation, the automotive industry was the leading application in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Gear Hobbing Machine Market: Growth Drivers

Growing demand for petroleum products to drive market growth

The global gear hobbing machine market is expected to be driven by the rising demand for petroleum products worldwide. Some of the most used products include everyday necessities such as kerosene, diesel, fuel oil, aviation turbine fuel, petrol, paraffin, and many more. As the global population continues to rise, the demand for petroleum products will continue to soar until the foreseeable future. This is because most of the modern tools run on petroleum-based fuel and although there is an increased rate of innovation to develop alternatives, petroleum cannot be easily replaced. Such trends are likely to push petroleum producers to seek new reservoirs and undertake extensive exploration activities, especially in deep waters causing the need to develop complex drilling systems and other accessories. In January 2023, the Indian government was reported to receive an investment of USD 58 billion in the same year that will be used for oil exploration projects. In July 2023, leading reports indicated that oil & gas corporations were reinvesting their profits earned from surging prices of fossil fuel toward exploring new deposits. The International Energy Agency has forecasted that global investments will reach a total of USD 528 billion in 2023.

Rise in power generation infrastructure to push the market revenue further

With the surge in demand for power supply across industrial, commercial, and residential units, governments and private companies have amped up their efforts to build a power generation infrastructure that can meet the growing demand from consumers. For instance, in August 2023, the Madhya Pradesh government of India and Coal India announced a partnership to install two thermal plants in the state at a cost of INR 5600 crore. In the same month, Germany announced its plans to provide hydrogen plants worth 8.8 gigawatts of power with an added supply of 15 GW, initially fueled by natural gas, and in 2035 it will switch to a hydrogen grid.

Gear Hobbing Machine Market: Restraints

Limited application of the machine to restrict market growth

Gear hobbing machines, while considered ideal for generating teeth on gears, have limited application. It can be used to produce splines, grooves, and serrations. For instance, splines are teeth present on a drive shaft which ultimately matches with a mating unit. However, gear hobbing machines cannot be used to create these structures, and similar restrictions are observed in other gear forms. This could lead to consumers preferring alternate methods that may prove to have higher cost efficiency. For instance, laser cutting, a no-contact procedure is not only safer to use but also provides precise results even when dealing with complex designs. These factors are likely to prevent the gear hobbing machine industry size from reaching its true potential.

Gear Hobbing Machine Market: Opportunities

Growing vehicle production worldwide to create growth possibilities

The global gear hobbing machine market may gain from the high growth rate observed in the automotive sector driven by the rise in vehicle production. Auto production trends are known to directly impact the demand for gear which subsequently affects the use of hobbing machines. The rise in world population, changing consumer buying patterns, growing middle-income groups, and the availability of vehicles across price ranges have helped the growth in commercial and passenger vehicles. Additionally, with the introduction of electric and hybrid vehicles is a major cause of the recent addition of new-age customers willing to spend more on environment-friendly amenities.

The Russia-Ukraine war has disrupted the supply and price of fuel leading to several countries witnessing a steep rise in fuel prices in 2022 and 2023 causing more people to incline toward electric substitutes. In 2022, more than 10 million electric cars were sold as per a new report by the International Energy Agency (IEA).

Gear Hobbing Machine Market: Challenges

High initial investment likely to discourage new entrants

Gear hobbing machines are expensive and require a high initial investment. Moreover, operating such a piece of machinery demands skilled professionals and a complementing infrastructure further adding to the total associated expense. This can discourage smaller players and new entrants from investing resources as they may find other alternatives more viable in terms of cost and performance.

Gear Hobbing Machine Market: Segmentation

The global gear hobbing machine market is segmented based on product, application, and region.

Based on product, the global market segments are horizontal gear hobbing machines and vertical gear hobbing machines. During 2022, the highest growth was observed in the horizontal hobbing machines segment since this variant has been used traditionally. They also offer excellent performance output while being highly versatile adding to the popularity of the machines. The productivity rate is directly related to reduced downtime and expansive application since they can be used on all types of gears thus justifying the associated cost. A gear hobbing machine may typically cost between INR 50000 to INR 500000.

Based on application, the gear hobbing machine industry  is divided into oil & gas, automotive, defense & military equipment, power generation, medical device manufacturing, industrial machine manufacturing, consumer electronics & appliances, and others. The automotive industry led with the highest CAGR in 2022 due to the extensive use of machines in providing teeth structures to gears used in automotive vehicles. The rising sales in the electric vehicles industry which is currently over USD 390 billion will help the segmental expansion in the coming years.

Gear Hobbing Machine Market: Report Scope

Gear Hobbing Machine Market: Regional Analysis

North America will lead the market for gear hobbing machines

The global gear hobbing machine market will register the highest growth in North America driven by high consumer demand for vehicles. Countries such as the US and Canada are home to the highest number of vehicle owners with the US topping the list mainly due to the presence of an excellent road infrastructure further influenced by consumer behavior and buying patterns. The region is currently registering a shift in vehicle buying trends with more people inclining toward electric and hybrid vehicles. In 2022, Tesla’s total sales jumped by 40% as compared to 2021 and was leading the title of US luxury sales. Moreover, the growing number of projects based on oil exploration activities will be responsible for regional dominance. In 2021, the US the capital expenditure in the oil & gas industry was close to USD 8.21 billion.

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Similarly, the Canadian government spent around CAD 15 billion in 2023 for the development of the oil & gas industry. Asia-Pacific is likely to grow at a steady rate with China, India, South Korea, and Japan as major contributors. The presence of several manufacturers and high demand in end-user verticals will act as the driving force.

Gear Hobbing Machine Market: Competitive Analysis

The global gear hobbing machine market is led by players like:

• Liebherr Group
• Gleason Corporation
• Koepfer America LLC
• Mitsubishi Heavy Industries Machine Tool Co. Ltd.
• Samputensili Machine Tools
• DMG MORI Co. Ltd.
• Luren Precision Co. Ltd.
• Kapp Niles
• Premier Limited
• Klingelnberg AG

The global gear hobbing machine market is segmented as follows:

By Product

• Horizontal Gear Hobbing Machines
• Vertical Gear Hobbing Machines

By Application

• Oil & Gas
• Automotive
• Defense & Military Equipment
• Power Generation
• Medical Device Manufacturing
• Industrial Machine Manufacturing
• Consumer Electronics & Appliances
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa