Market outlook for precision gearboxes and geared motors

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The global precision gears market mounted a welcome recovery in 2025, growing 7.8% after enduring a steep double‑digit decline the previous year. According to the latest Precision Gearboxes & Geared Motors report conducted by Interact Analysis, based on extensive engagement with manufacturers worldwide, the sector is beginning to regain the momentum lost during the turbulence of 2024. A key force behind this rebound is the robotics industry, which continues to reshape demand patterns and is steadily increasing its share of global precision gear revenues. Robotics accounted for 35% of the market in 2025, up from 33.6% in 2021, and is expected to surge to 46.3% by 2030 as robot production expands across industrial, mobile, and humanoid formats.

Industrial robotics, long the backbone of precision gear demand, generated $878 million in revenue in 2025—representing 27.3% of global precision gearbox and geared motor sales. This marks a clear step upward from the $790 million seen during 2024’s sharp contraction, even if the segment has not yet returned to its 2023 peak of $1.0 billion. Production of industrial robots dropped from over 521,000 units in 2023 to slightly above 502,000 in 2024, a downturn driven primarily by inflated inventories and subdued capital expenditure across multiple regions. In 2025, market conditions improved markedly in Asia, where precision gear sales linked to industrial robots grew 16%, while the Americas and EMEA remained relatively flat.

Manufacturers anticipate broader, more synchronised growth in 2026. Reshoring activity and a rebound in manufacturing output in the United States are expected to support new deployments of automation equipment. In Europe, long‑delayed automotive projects are finally lining up for execution, adding to the momentum. Meanwhile in Asia, the electronics and semiconductor industries continue to expand at pace, propelled by a global AI boom that is stimulating investment throughout the supply chain.

Dynamic growth engine
Mobile robotics, despite headwinds from tariffs and investment uncertainty, continues to stand out as one of the most dynamic growth engines for precision gears. Some operators have postponed large‑scale roll-outs in favour of phased deployments, yet the underlying appetite for automation solutions remains strong. Precision gear sales to the mobile robot segment climbed 24.5% in 2025, reaching $169 million. With an expected compound annual growth rate of 20.1%, mobile robotics is forecast to exceed $400 million in precision gear sales by 2030, contributing meaningfully to the overall market’s expansion.

Perhaps the most striking momentum shift comes from the humanoid robotics sector. Although still in its infancy, it is evolving faster than many market watchers anticipated. Precision gearbox manufacturers generated only $16 million in humanoid‑related revenue in 2024, but by the end of 2025 that figure had increased five‑fold as global production expanded from under 2,000 units to more than 10,000. Revenue is projected to nearly double again in 2026.

The bulk of today’s humanoid actuators rely on strain wave and planetary gear technologies thanks to their compactness, light weight, and cost advantages. Cycloidal gears, while still limited to specific joints such as hips, knees, and the waist, are gaining traction for applications requiring high torque and greater impact resistance. By 2030, strain wave and planetary designs are expected to remain dominant, though cycloidal systems are likely to establish themselves firmly in performance‑critical roles. If current trajectories hold, the humanoid robot sector is positioned to become the second largest market for precision gear products by the end of the decade.

While robotics drives the largest share of new demand, several non‑robotics markets are also expected to contribute to the sector’s long‑term growth path. Military and defence applications are expanding as global defense budgets rise, supporting demand for precision gears in radar positioning equipment, communications systems, aerospace platforms, military vehicles, and unmanned systems.

AI-related investment
This segment is forecast to grow at an average annual rate of 5.9% through 2030, outperforming many other traditional machinery markets. Semiconductor and electronics machinery, meanwhile, has been experiencing a strong cyclical rebound since 2024, fuelled by AI‑related investment and supportive industrial policies. The medical equipment sector, less exposed to the volatility of general industrial manufacturing, continues to demand high‑precision, low‑backlash gear solutions and is expected to outperform broader manufacturing segments.

In contrast, the food and beverage and packaging machinery industries—while maintaining healthy order volumes — are increasingly adopting lower‑cost ‘good‑enough’ gear products, a trend that is placing downward pressure on average selling prices and tempering revenue growth. Even so, both sectors are projected to sustain relatively strong performance into 2026.

Taken together, these developments underscore a precision gearbox and geared motor market that is steadily regaining its footing after a difficult period. Robotics remains the powerhouse of industry expansion, from established industrial automation platforms to the rapid rise of mobile and humanoid systems. Alongside this, defence, semiconductor equipment, and medical machinery markets are providing new avenues of opportunity. With automation becoming increasingly embedded across global industry, the long‑term trajectory for precision gear technologies remains decidedly optimistic.