Market Trends of Industrial Couplings Industry
This section covers the major market trends shaping the Industrial Couplings Market according to our research experts:
Automotive Sector to Register a Significant Growth
- Industrial couplings are in massive demand in the automotive sector as numerous tools for testing and connecting a vehicle to a trough are used in the automotive industry. Furthermore, the rising adoption of electric vehicles globally is creating more opportunities for industrial couplings.
- According to statistics from International Energy Agency (IEA), in 2021, plug-in electric light vehicle (PEV) sales stood at around 6.7 million units. The market in China picked up steam after a slowdown in 2020, as vehicle manufacturing and demand were at a standstill due to the COVID-19 pandemic.
- Moreover, governments are also taking several initiatives to sustain the growth of the automotive sector. For instance, in June 2022, Egypt launched a national strategy for localizing the automotive industry. The strategy aims to strengthen Egypt's footprints in Africa's emerging vehicle markets and build substantial commercial and investment relations with main regional trade partners to ensure sustainable development growth for all sides.
- Additionally, the Ontario Government continues to invest in the province's auto parts supply chain with another round of investments through the Ontario Automotive Modernization Program (O-AMP) to position Ontario as a North American EV hub. Such developments are further accelerating the demand for industrial couplings.
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Asia-Pacific is Expected to Show a Significant Growth
- The industrial sector has emerged as one of the highest-growth sectors in the region. Various government initiatives, such as the 'Make in India' program, have further placed the region as one of the major hubs.
- Furthermore, Japan has been a pioneer in transforming into an automated industrial economy. The Industrial version 4.0 is being adopted at a rapid pace. The region has emerged as a manufacturing hub for factory automation products and supplies them to other regional markets in the Asian-Pacific region alongside international markets, propelling the demand for industrial couplings.
- The region is witnessing developments from various end users. For instance, in July 2022, Gilat Satellite Networks Ltd received an order of USD 7 million from a Tier-1 mobile network carrier in the Asian-Pacific region for a 4G cellular backhaul network expansion. Further, the ongoing developments in the 5G infrastructure in the region will also propel the growth of the market under study.
- Various international automotive companies are looking for strategic investments to expand their footprint in the emerging automotive sector in the region. For instance, in August 2021, Renault partnered with Geely Holding Group to establish the JV, which will build and sell Renault-branded gasoline-electric hybrid cars in China using Geely's technologies, supply chains, and manufacturing facilities. The venture would initially focus on China and South Korea but would likely be expanded to cover fast-growing Asian markets.
- A significant trend impacting the market studied is the focus on smart manufacturing practices. According to the data from IBEF, the Government of India set an ambitious target of increasing manufacturing output contribution to 25% of the gross domestic product by 2025, from 14.07% in 2021.
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