Bearings Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Bearings - Procurement Trends

The bearings market is expected to grow at a CAGR of 9.5% from 2024 to 2030. The Asia Pacific region accounts for the largest overall share with 40% in 2023. China and India have their major contribution to the market growth. Factors such as increasing demand for EVs, growth of the aerospace sector, rising industrialization, infrastructure development, technological innovations, and growing focus on renewable energy are driving the growth. One of the key trends is the increasing demand for electric and hybrid vehicles that utilize the use of developed technology which requires placing additional bearings within it. Additionally, precision bearings, which are utilized in several industrial automation applications, are in higher demand as the Industrial IoT and Industry 4.0 technologies gain traction and drive the need for bearings in industrial automation.

Smart bearings, integrated with a tri-axial accelerometer to gauge the degree of system vibration. It assesses the post-process algorithm to predict the unlikely fault before they occur. This significantly reduces downtime, cost, and breakdown of products, allowing proper timely maintenance and significant changes required in the bearing category. In 2023, EV sales are likely to jump to 6 million as the demand surges, with the rise in the shift towards e-mobility, every component in the vehicle needs to be kept running in sustainability to provide optimum efficiency. Smart bearings offer vital information for anticipating the maintenance of EV parts. Integration of AI and IoT technology helps in monitoring real-time data and enables the customers to monitor the status of bearings at all times. UK-based SMB Bearings Ltd predicts near future adoption of this cutting-edge technology.

In terms of segmentation, the main product types include ball, roller, plain, and other bearings. Roller bearing registered the highest revenue share in 2023-at around 45%. This industry is expected to continue its dominance and develop at the greatest rate in the forecasted year. It is predicted that the growing use of roller bearings in a variety of sectors, such as capital equipment, automobiles, household appliances, and aircraft, will boost demand for the bearing market sector. With countries driving toward Net zero emissions, there is wide use of tapered roller bearings to ball bearings in turbine generators, shafts, propellers, and other modules. In 2022, German manufacturer, Schaeffler Group developed a new asymmetrical spherical roller bearing to wear high resistance, lower friction torque, and extend the turbine life cycle along with generating more power.

The bearings category is highly competitive and fragmented, with several local and foreign businesses participating in the industry. To achieve a competitive edge, major players are establishing alliances and partnerships with corporations to automate various processes and ease manual tasks. In 2022, SKF signed the acquisition of Belgium-based Laser Cladding Venture, a company that is into additive manufacturing to support the services and remanufacturing offering of the company. To strengthen their market position and broaden their customer base, market participants are rapidly expanding their services being offered through technological advancements such as the development of ceramic and composite bearings which are capable of providing more durable strength, less wear and tear, and produce less noise due to their property of being able to perform better at high temperatures. To lead in environmental sustainability, industry players are taking various measures to excel in the competition. For instance, in 2021, SKF, a Swedish-bearing company runs its factory at 97% fossil-free and acclaimed to have 100% net zero steel by 2050 in its products.

Supply chain disruption due to the Russia-Ukraine war has led to a surge in the prices of commodities in most countries. In 2022, due to the wake of the 15% export levy imposed by the Indian government, steel prices followed an upward trend and grew by 40% to reach USD 960 in the Indian markets. With the surge in demand for luxury cars and industrialization, the EU being the major producer, accounted for major imports and export of ball and roller bearing around the world. In 2021, the EU surged the export of bearings by 10% from the previous year reaching USD 12.2 billion. This resulted in an increase in the price of bearings export by 6.6% compared to 2020, reaching USD 18,157 per ton. A surge in the prices of raw materials and export duty has significantly caused a hike in the prices of the category.

Sourcing of the category involves procurement of raw materials and category imports from various countries. China accounted for the top exporter of ball bearings with 24% of world exports in 2023. Strategies such as advanced technology, smart bearings, quality standards, and sustainability criteria are allowing companies to lead in the market. Various industrial institutes and organizations, including the Association of Chinese Bearing Industry, have provided recommendations and ideas to advance bearing technology and processing machinery like the use of CNC machining centers, using high-precision machine tools, auxiliary equipment for automatic line connection, and high-speed electric spindles. 

Bearings Procurement Intelligence Report Scope