Santa Clara, Calif. – August 14, 2020 – Frost & Sullivan’s recent analysis, Collaborative Business Models Set to Catalyze Growth in the Global Belt and Chain Drives Market, 2020–2024, forecasts that increasing adoption of chain and drive belts in the agriculture, food & beverage, and construction sectors across the Asia-Pacific region will promote the expansion of the global market. While the sector is expected to experience a downward trend over the next two years due to COVID-19, revenue is projected to surpass pre-pandemic levels in 2024, reaching $11.32 billion, from $11.00 billion in 2019. While revenue across Europe is forecast to be negative, the United States and South America should experience slow to nil expansion.
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"Unlike in other industrial systems, there are fewer opportunities for value addition and technological development,” said Krishnan Ramanathan, Industry Manager, Industrial Practice. "Nevertheless, companies are always looking to incorporate newer methods to help address efficiency issues. Developments in IIoT and Big Data are also becoming increasingly vital for end users to improve their market share. However, the present scenario has meant that vendors and financial institutions supporting some of these industries are unable to inject the capital required for expansion, delaying new projects.”
Ramanathan added: "Among the major countries globally, countries in the APAC region have robust plans for investment in infrastructure. This is expected to fuel the demand for cost-effective machinery manufactured in the region, which, in turn, will bolster the growth of the OEM market for belt and chain drives. New regulations with regard to energy efficiency are also expected to result in increased demand. Additionally, vital industries such as agriculture, oil & gas, and food & beverage, which are likely to receive financial assistance to tide through the current scenario, will aid the success of the sector.”
For further revenue opportunities, manufacturers should:
- Improve energy efficiency and reduce costs by focusing on the development and customization of new products.
- Enhance the capabilities of chain drives by using materials with superior properties that provide increased corrosion and temperature resistance.
- Develop innovative new components and products incorporating IIoT to aid efficient manufacturing.
- Partner with multiple vendors along the value chain to offer products at different price points.
Develop new and more efficient methods of material handling to aid industries incorporating cloud and Big Data solutions.
Collaborative Business Models Set to Catalyze Growth in the Global Belt and Chain Drives Market, 2020–2024 is part of Frost & Sullivan’s global Industrial Automation Growth Partnership Service program.