Bearing industry status and prospect analysis

As the new coronavirus epidemic slows down, following a reversal of policies/restrictions in the latter stages of the epidemic, global demand for bearings is witnessing accelerated growth, which is expected to grow by nearly 5 percent per annum to reach €80 billion over the next five years. A number of current disruptions, including the Russia-Ukraine war, raw material shortages, inflation, and macroeconomic policies, have added much uncertainty to the industry's growth. Nevertheless, increased consumer spending is leading the global economy toward positive growth. Foreign investment is on the rise in regions with a high concentration of manufacturing, such as the Asia/Pacific region. In addition, growing environmental concerns and the need for more ecological and carbon-neutral products are driving the development of new bearing technologies and products.

The global bearing industry is recovering from the epidemic

Between late 2022 and early 2023, restrictions on the epidemic are gradually being liberalized and business activity is increasing. Consumer spending and demand for durable goods are increasing in most countries. Supply chains are stabilizing, and financial constraints imposed by currency value fluctuations and loan availability have decreased. These factors, along with others, are contributing to the growth of the world economy and, as a result, the global bearings industry has begun to recover (prior to this, there was a double-digit decline in demand for bearings, a tangible product that is not for immediate consumption).

As a result of the previous drop in demand, more bearings are now required in all major industries around the world. Manufacturers and consumers alike are sensing that the impact of price sensitivity is diminishing, which will re-invigorate strategic investments and increase R&D spending. As a result, new product development cannot be delayed. In addition, with the increased use of machinery, including automotive use, bearing replacement is becoming an urgent need, which is fuelling the growth of the bearing aftermarket.

Regional Demand and Supply

The Asia-Pacific region will see the greatest growth over the next five years, with China and India at the forefront. The export-focused and cost-competitive nature of Asia-Pacific countries makes the region an ideal place for the bearing industry to grow. The global market is dominated by large multinational bearing companies. Most major bearing producers will strategically deploy their production facilities in countries with large domestic markets. Today, China has one of the largest domestic markets for bearings and continues to grow and consolidate, becoming a hotspot sought after by almost every major bearing producer. The most advanced bearing manufacturing remains in Japan, the United States, Sweden, and Germany, which have some of the world's top bearing producers serving large, developed markets and focusing on the research, development, and production of high-technology, high-value bearings. Although these countries have strong domestic bearing producers, they still rely on imports from lower-cost countries to meet the basic needs of the domestic market.