Growth expectations for the global precision geared products market have been revised downward, but improving manufacturing activity and renewed industrial investment are expected to sustain the sector’s recovery through 2026.
Market intelligence firm Interact Analysis has lowered its projected average annual growth rate from 9.2% for the 2024–2028 period to 7.7% across 2024–2030 in its Precision Gearboxes and Geared Motors – 2025 report. The adjustment reflects a slower-than-anticipated rebound in capital investment across major global regions.
Despite the revised long-term outlook, the market returned to positive territory in 2025, recording an estimated 7.8% year-on-year increase to reach $3.2 billion. The recovery has been largely supported by a strong resurgence in industrial robot production, particularly across Asia’s manufacturing sector.
Momentum is expected to strengthen further in 2026, with revenues projected to grow by around 8% year on year, as manufacturing activity continues to stabilise and industrial demand steadily improves worldwide.
Tough 2024 followed by sluggish demand in Europe and US constrains growth
Growth in the precision geared products market through 2024 was significantly lower than expected, with a -10.5% decline in precision gear product sales following a dip in 2024. This was largely due to a decrease in industrial robot production, caused by weak investment in key sectors like automotive and machine tools. Supply chain disruptions in 2023 led to over-ordering and high inventories, which also constrained growth.
Robotics production and demand in Europe remain sluggish, while ongoing uncertainties in the US are impacting investment decisions. In China, the robotics market performed well in 2025, but the growth may stabilize in 2026 as manufacturing investment has been slowing amid measures to control excess capacity expansion.
The Asia Pacific region leads the precision geared motors market, accounting for 54% of total global revenue, whilst Japan and China saw a significant recovery in industrial robot production in 2025. Additionally, the rapidly growing humanoid robot market is further driving growth in the region. Meanwhile, Europe has seen the slowest recovery out of all major regions, although specific sectors such as the mobile robotics, medical equipment, and defense sectors have performed well. The Americas is expected to see a continued recovery in precision geared product sales during 2026, benefitting from reshoring initiatives and policies supporting advanced manufacturing.
Samantha Mou, Interact Analysis Senior Market Analyst, China, says, “Despite challenges, the global manufacturing economy is beginning to show signs of recovery, as we had been forecasting since the last edition of this report. We anticipate the Americas and EMEA will see a recovery in 2026, while growth in APAC is set to stabilize following the significant rebound in industrial robot production in 2025.”
