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The study undertaken by Astute Analytica foresees a tremendous growth in revenue from US$ 1,772.6 Mn in 2021 to US$ 3,374.4 Mn by 2027. The India Bearing Market is expected to grow at a CAGR of 10.9% during the forecast period 2022-2027. Bearings are used in every kind of equipment or machinery, ranging from automobile parts, farm equipment, and household appliances to defense and aerospace equipment. The growth in the market size is attributed to rising utilization of bearing in motor and increasing demand of automotive electrification.
Significance of the India Bearing Market
The attempts by the India government to revitalize the manufacturing process of bearings within India to shift the interests towards local products enhance the growth of bearing market. Manufacturing has emerged as one of the high growth sectors in India. Indian government’s initiatives such as ‘Make in India’ and ‘Aatmanirbhar Bharat’, aimed at reviving the manufacturing sector, in turn increases the demand for bearings. According to the United Nations Conference on Trade and Development (UNCTAD), India ranked among the top 10 recipients of Foreign Direct Investment (FDI) in South Asia in 2019, attracting US$ 49 billion—a 16% increase from the previous year. India has become one of the most attractive destinations for investment in the manufacturing sector.
Bearings are used in automobile to ensure smooth running of cars, electric vehicles (EVs), and other type of vehicles such as light weight commercial vehicles and heavy vehicles such as trucks. Therefore, the demand for bearing increases with the rise in the production of automobiles. India became the fourth largest auto market in 2019 displacing Germany with about 3.99 million units sold in the passenger and commercial vehicles categories. India is expected to replace Japan as the third largest auto market by 2022. Domestic automobiles production increased at 2.36% CAGR between FY16-20 with 26.36 million vehicles being manufactured in the country in FY20.
Counterfeit act is growing rapidly at global level. Bearings are one of the popular counterfeiting items. The International Trademark Association and the International Chamber of Commerce published the report in February, which says that the value of counterfeiting and piracy worldwide could reach $2.3 trillion by 2022- two times growth from $1.7 trillion in 2015. Some brands have gone to extreme lengths to halt sales of counterfeit versions of their products. Companies such as SKF and NSK are among the companies that are more prone to this threat. Such fake bearings are dangerous due to the possible design failures that may occur, leading to machine damage and injuries. When counterfeiters sell a product that looks the same as the original but at a lower price, the authentic brand will lose sales. Therefore, the counterfeit products pose a great challenge for the bearing industry of India.
Impact of COVID-19
The COVID-19 pandemic has had a significant impact on the market with many of the manufacturing companies facing adverse effects of lockdown situations in major economies such as China, Japan, among several others. The automotive industry, which is the largest consumer of bearing among all the other industries, witnessed a substantial reduction in vehicle production primarily owing to the supply chain disruptions and restrictions on the movement of people. However, the conditions improved in the later quarters of 2020 with gradual upliftment of restrictions and subsequent increase in production activities.
Automotive segment of the India Bearing Market is anticipated to have the highest growth share by 2027
The automotive segment dominated the market and held the largest revenue share of 46.6% in 2020. The high share of this segment can be attributed to high automotive production. Also, the demand for vehicles with technologically advanced solutions is escalating, thus, leading to rise in vehicle manufacturing that necessitates instrumented products.
A glance at the competitors
The India Bearing Market is segmented based on product type, size, material, and application. These segments are further sub-divided to get a holist picture of the market.
Following are the different segments of the India Bearing Market: -
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