DROC Bearing Market

1.1.
1 Growth drivers
1.1.1.1 Increasing vehicle sales for new and pre-owned vehicles
The rising urbanization and expanding vehicle consumer base across the world will
principally drive the bearings demand for new/pre-owned vehicles globally. Escalating
vehicle sales along with economic development in several emerging economies, such as
India, China, and South Korea, will support the bearings demand in automotive
manufacturing owing to its wide usage application in key automotive sub-systems.
Automobile’s bearings find a wide application in electrical motors, gearboxes,
transmissions, engines, steering, wheels, and pumps. In addition to this, even wipers,
doors, rear view mirrors, and bonnet hinges require bearings for smooth functioning. The
growing demand for periodic repair & maintenance of automotive systems for smooth
and efficient operations of vehicles will positively influence the bearings application in the
automotive aftermarket over the forecast period.
FIG. 1 Global number of new vehicles sales, 2010-2019 (Million units)
Source: OICA
The above figure highlights the global annual sales of new vehicles including passenger
car sales along with commercial vehicles. The data illustrates fluctuating year-on-year
vehicle demand, which has decreased significantly in the case of passenger cars over the
last two years and is continuously increasing in the case of commercial vehicles. The
growing trends of vehicle customization with increasing number of vehicle accessories
and outlets across the globe will drive the bearings demand over the coming years.
Low cost of vehicle ownership owing to a favorable tax structure and the availability of
fuel at affordable rates are key factors driving used/pre-owned vehicle sales worldwide.
The demand for pre-owned cars is growing at a faster rate than that of new cars owing
to the shift in consumer preferences toward utilizing refurbished & preowned cars under
limited budgets, showcasing positive growth prospects for the industry size; thus,
increasing demand for the customization, repair, and maintenance of refurbished
vehicles will provide a positive outlook for the bearing’s aftermarket share over the
forecast spell. The increasing number of authorized & independent vehicle repair
workshops across the globe offering customized services and replacement facilities will
support the bearings demand in the automotive industry.
1.1.1.2 Increasing range for e-vehicles

The increasing concerns of climate change and global warming over the recent years
have shifted consumers focus toward e-vehicles mobility as they help to reduce harmful
exhaust emissions into the air. Low ownership costs, charging infrastructure deployment,
cost-effective maintenance, and effective energy utilization will surge its growth in the
future. This, in turn, will positively influence the product penetration across various e-
vehicle systems to reduce friction and enable smooth rotation between the moving parts,
improving the overall efficiency and performance of vehicles.
FIG. 2 Global electric car deployment (Million Units), 2013-2018
Source: International Energy Agency
The above figure highlights the electric car deployment globally, which mainly includes
Battery Electric Vehicles (BEV) and Plug-In Hybrid Electric Vehicles (PHEV). The data
illustrates exponential year-on-year demand for electric cars, which has increased
significantly over the last two years. This is owing to several measures by various
developed & developing economies, which incentivize zero or low-emission vehicles to
maintain fuel economy standards. This helps to bridge the cost gap between
conventional & electric vehicles and supports the deployment of charging infrastructure
across several regions. Bearings application in e-vehicle improves the overall efficiency
of the vehicle, reducing its fuel consumption and charging time.
The increasing range of e-vehicles, i.e., from battery electric car, plug-in hybrid electric
car to commercial battery electric vehicle, and plug-in hybrid electric vehicle including
light commercial vehicles, buses, and trucks will also drive the product growth in the
sector. Private players’ response to public policy reforms indicate immense growth in the
sector. For instance, in May 2020, Tesla, Inc., an electric vehicle giant, reduced the
prices of its several electric cars models. The growth in the e-vehicle industry will
positively influence the bearings market size over the forecast period.
1.1.2 Industry pitfalls & challenges
1.1.2.1 Energy efficient and environmental manufacturing norms
Bearings require proper maintenance and care for its long run operation. They are
important to ensure correct installation and application of the bearings to extend their
lifespan. The increasing concern about the negative impacts of climate change and
environmental degradation calls for the action to reduce or avoid these impacts on
industries by adopting new and efficient business models, which are less dependent on
physical resources.
Changing government policies & regulations pertaining to emission standards and

climate change goals will also hinder bearings production in the near term. Automation
along with condition monitoring and remanufacturing digital services reduces scrap rate,
increasing energy efficiency and environmental benefits.
Other challenges in the market including bearings operation under high temperatures,
excessive load, and contamination will result in its failure. The counterfeit market also
plays a significant role in slowing down the bearings industry. This is because several
small manufacturers produce replicas of genuine products and sell them at cost-effective
prices to attract a large consumer base. These products are of inferior quality and break
down very often, creating a negative image for a brand in the market and affecting the
sales of original parts & accessories.
The closure of several manufacturing facilities worldwide owing to COVID-19 will

negatively influence the bearing demand in the near term. Despite a recent slowdown in
the demand for cars and other auto part accessories in the backdrop of lethargic
economic conditions, the global bearings market is likely to offer immense opportunities
in the long run.

DROC Bearing Market

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1.1.

1.1.1.1 Increasing vehicle sales for new and pre-owned vehicles

FIG. 1 Global number of new vehicles sales, 2010-2019 (Million units)

1.1.1.2 Increasing range for e-vehicles

FIG. 2 Global electric car deployment (Million Units), 2013-2018

Source: International Energy Agency

1.1.2 Industry pitfalls & challenges

1.1.2.1 Energy efficient and environmental manufacturing norms

Changing government policies & regulations pertaining to emission standards and

The closure of several manufacturing facilities worldwide owing to COVID-19 will

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