Following the slight downturn in aerospace manufacturing after events such as the grounding of the 737 MAX by Boeing, growth in the demand for bearings and other power transmission components began to wane. However, the aerospace sector is projected to see 3.1% growth through 2023.
A Setback for the Aerospace Industry
The aerospace market will be constrained – at least in the short term – by the Boeing 737 MAX debacle and related manufacturing reductions. The 737 MAX, the latest version of Boeing’s cash cow 737, has been grounded worldwide following two crashes (October 2018 and March 2019) that claimed the lives of all onboard. The incidents are believed to have been caused by faulty sensors and software, as well as inadequate instruments on the base model aircraft. The incident has sparked concerns for how the aircraft – and all aircraft in general – are certified, foreshadowing potential long-term changes in the regulatory environment. The aircraft are expected to be allowed to fly again in 2020, once the software is fixed and receives approval from regulatory agencies around the world. Manufacturing will resume upon approval, boosting demand for bearings used in new commercial aircraft as well as demand for replacement parts.
Growth on the Horizon
With SpaceX on a rapid climb to a higher market value than many current leaders in the space industry, power transmission component manufacturers are likely to benefit. Specifically, those firms that manufacture super precision bearings for critical satellite and spacecraft systems will see substantial opportunities going forward.
SpaceX began launching its Starlink satellites this year – with two to six launches expected. The program is intended to bring high speed internet to the entire globe, and will offer service to Northern US and Canadian regions after six satellite launches. Ongoing investments in commercial space travel and other space projects will continue to benefit suppiers of bearings.
Want to Learn More About Power Transmission Components?
Don’t worry, we have you covered! For additional information and analysis of US industry trends, see Power Transmission Components: United States, a report published by the Freedonia Focus Reports division of The Freedonia Group. This report forecasts to 2023 US power transmission component demand and shipments in nominal US dollars at the manufacturer level. Total demand and shipments are segmented by product in terms of:
- motor vehicle transmissions and powertrain parts
- ball and roller bearings
- gears and gearboxes
- mechanical power transmission products
To illustrate historical trends, total demand; total shipments; the various segments; trade; and US firm, establishment, and employment data are provided in annual series from 2008 to 2018.
Excluded from the scope of this report are automotive engine bearings as well as flexure, fluid, and magnetic bearing products. Also excluded are related bearing hardware such as adaptor and withdrawal sleeves, locknuts and washers, lubricators, and retaining plates. In addition, certain types of power transmission components (e.g., ball, swivel, and universal joints) for use in aerospace equipment are excluded from the scope of this report, although bearings for aerospace equipment are included in the bearings segment. Re-exports of power transmission components are excluded from demand and trade figures.
You can also check out some of our related reports, which include:
About the Author
Chris Dyer is a Market Research Analyst for Freedonia Focus Reports. He holds a Master of Arts in Security Studies, and his experience as an analyst covers multiple industries.