The Prospects Analysis for Reducers Demand

- Oct 14, 2020-

Benefiting from the continuous deepening of industrialization and urbanization and the country's emphasis on machinery manufacturing, the reducer industry is one of national basic equipment industries in China. At the same time, Chinese economic development has entered into the deep adjustment period, and the reducer industry has also been transforming and upgrading accordingly.


In June 2016, the 4 high-precision reducers independently developed by domestic enterprises, namely cycloid envelope precision reducer, harmonic reducer, cycloid steel ball reducer, and wheel motor reducer, were launched at the Shanghai International Gear Transmission Equipment Exhibition to compete with the international robot reduction gear. This is a major breakthrough that China made in the field of precision reducers.


As an indispensable transmission equipment in modernization, reducers are used in various industries. The downstream application industries of the reducer mainly include various fields of the national economy and national defense industry such as lifting and transportation, cement building materials, heavy mining, metallurgy, electric power and aviation and marine use. Due to the strong downstream market, the development prospects of Chinese reducer industry are promising.


1. In the lifting and transportation equipment industry :

Chinese lifting and transportation equipment manufacturing industry is facing good development opportunities. The accelerated implementation of urbanization has created  huge demand for machinery and equipment in the construction of urban infrastructure, which has created good macro environment for the development of lifting and transportation equipment manufacturing enterprises. Lifting and transportation equipment is an industry where reducers are widely used, and the development speed of this industry directly affects the growth rate of the market demand for reducers. It is expected that during the "13th Five-Year Plan", Chinese lifting and transportation equipment manufacturing industry will continue to maintain rapid growth momentum. Benefiting from this, the demand for reducers will also be effectively driven.


2. In cement machinery industry :

Cement machinery is an important industry to revitalize the cement industry. With the country's policy support for infrastructure construction and the increase in macro-control of the cement industry, the growth space of cement machinery market demand will be broader, and the cement machinery industry will develop in a more reasonable direction. Reducer is the second major regular mechanical equipment used in cement machinery, and its market prosperity will inevitably continue to rise with the strong demand of the cement machinery industry.


3. In the metallurgical machinery industry

Under the guidance of national macro-control, the total production capacity of the steel industry has been strictly controlled recently, this has accelerated the elimination of outdated production capacity, and strictly controlled new production capacity. After long-term extensive expansion, the steel industry need to accelerate structural adjustment and industrial upgrading. This adjustment has brought challenges to the metallurgical heavy machinery manufacturing industry, especially the high-tech equipment manufacturing industry, and also brought market opportunities. Generally speaking, opportunities outweigh challenges. During the "13th Five-Year Plan" period, environmental protection and large-scale high-efficiency steel smelting equipment will usher in new round of rapid growth. As an important supporting product of metallurgical equipment, the demand for reducer in metallurgical equipment will also be strongly driven.


4. In the robotics industry

The robotics industry is attracting more attention at the moment, and it has much room for future development. The precision reducer is key functional component in industrial robots and crucial application link in the robot industry chain. From 2015 to 2018, the demand for reducers in Chinese industrial robots reached 236,000 sets, 296,000 sets, 369,000 sets and 462,000 sets, according to the Statistical data. In addition, for the industrial robots in the domestic market based on 8 to 10 years of lifespan, the domestic market demand for precision reducers will exceed 1 million units in the future, and the annual market sales will exceed 1.5 billion USD.