Market Research Report
|Published by||Global Industry Analysts, Inc.||Product code||947480|
|Published||Content info||410 Pages
Delivery time: 1-2 business days
|Published: August 1, 2020||Content info: 410 Pages||
Key End-Use Industries Collapse Like a House of Cards Leaving the Linear Actuators Market Staring at $4Billion in Losses
The global market for Linear Actuators is expected witness revenues plummet by -14.2% in the year 2020 and thereafter recover and grow to reach US$37.2 billion by the year 2027, trailing a post COVID-19 CAGR of 6.3% over the analysis period 2020 through 2027. Actuators are critical devices used as components in assemblies for almost all industries, including automotive, aerospace, agriculture, manufacturing, solar, medical, and robotics. Actuators are electromechanical or mechanical systems which control motion. They transform energy into motion. The resultant effect is used in many scientific and industrial applications such as nanopositioning in semiconductor production, valves, and micro fluidic motors, among others. Actuators are used for applying specific force on entities for performing different mechanical operations. They are used in manufacturing and industrial applications, in devices such as motors, pumps, valves and switches among several others. With applications spread out across myriad industrial sectors, the market is bearing the yoke of the disruptions caused by the pandemic. The automotive industry represents one of the major end-use markets for linear actuators. Global automobile production plunged in 2019, with sales dropping down by 5%. China registered a sharp decline in production and sales during the year.
Global automobile production is further expected to register a decline in 2020, as auto plants across the globe suspend production temporarily to curb the spread of COVID-19 and improve safety protocols to safeguard employees against the pandemic. The halt in production is expected to impact the cash flow for the automakers against the drop in demand. COVID-19 outbreak and stringent measures to contain the pandemic hold negative implications for the global automobile industry that is forecast to witness a dramatic decline of 20% in vehicle production in 2020 to 71 million units, indicating a loss of 19 million units. Suspended vehicle production in North America is coercing automakers to delay launch of new models. New vehicle sales have also taken a major hit as battered consumer confidence and rising unemployment rates reduce consumer spending on big-ticket items like passenger cars. The complete annihilation of the logistics and transportation industry is also impacting sales of heaving vehicles and commercial vehicles. Also the worst affected industry in this pandemic driven crisis is manufacturing with its complex supply chains, labor intensive processes, and interdependencies. Division of labor, modular manufacturing strategies, outsourcing to reduce costs and increase the efficiency, consistency, and quality of each operations have made the manufacturing sector most vulnerable amid the lockdown restrictions. A revised outlook pegs the global market for machine tools at US$87.4 billion by 2027. An indication of the grim state of affairs is the fact that global manufacturing PMI is already declining and will fall to an estimated all-time low of 35.4 points in 2020 as compared to 53.8 in 2019. This indicates severe contraction of manufacturing activity including new orders, production, employment, supplier deliveries, inventories, customers' inventories, commodity prices, order backlog, new export orders, and imports. Business investment confidence is tumbling amidst poor demand, falling profits, liquidity crunch and a reeling global economy. The "great lockdown" of 2020 has crushed the global economy and with it the manufacturing sector. SMB manufacturers will be worst affected with over 50% of SMEs voicing uncertainty over their companies' ability to survive the coronavirus-related shutdown. In addition to production reductions caused by supply chain disruptions, manufacturers are also faced with declining consumer demand for manufactured goods. Global merchandize trade is expected to plummet by 15% to 30% in the year 2020 highlighting the magnitude of disruption.
In the post pandemic period, the manufacturing digital transformation catalyzed by the pandemic will provide a perfect platform for growth of linear actuators in the post covid-19 period, given the technology's important role in enabling automation. With various organizations going online launching digital initiatives, industrial participants are investing in automation and eying on expediting the shift towards Industry 4.0. The COVID-19 has been a wake-up call for companies to make substantial and realistic plans to leverage emerging technologies and concepts like robotics, IIoT and smart factory for pushing productivity, reducing overall costs and gaining an edge over competitors. Industry 4.0-led automation is a savior for manufacturers, especially for companies operating in countries known for high labor costs. The concept paves way for highly dynamic processes through automated assemblies. Automation along with latest technologies such as AI and machine learning makes machines smarter and allows them to share data with other systems for achieving a self-optimizing and self-healing production line. The scenario bodes well for smart linear actuators which in addition to performance benefits also help in reducing size of components, which in-turn reduces cost of software and hardware. Smart linear actuators will especially find robust applications in material handling equipment and conveyor systems. Industry 4.0, to summarize, is a new generation industrial automation concept that emphasizes integration of plant-wide production operations with sensor-driven, high-tech machines, which will supplement and accelerate deployment of smart actuators with advanced features such as IoT-compatible units with AI and ML features, among others.
Competitors identified in this market include, among others,