Global Demand for Bearings Will Rise 5% Annually

Global demand for bearings is projected to rise over five percent annually to over $40 billion in 2010, accelerating from the 2000-2005 period. Bearings demand will be stimulated by an acceleration in world economic growth, increased fixed investment activity, higher manufacturing production, and rising aerospace equipment and motor vehicle output. Gains in developing regions to spur growth worldwide Market advances in developing parts of the world - including the Asia/Pacific, Africa/Mideast, Eastern Europe and Latin America regions - will considerably outpace demand in the US, Western Europe and Japan. China will register the largest gains of any national market in dollar terms as the country continues to develop as an economic power and manufacturing and fixed investment activity climb. Market growth is also expected to be strong in India, Thailand, Taiwan and Russia. The rate of increase will be less robust than in developing areas, but bearings demand in the US, Western Europe and Japan will accelerate through 2010. Sales growth will be spurred by generally favorable economic conditions and higher income levels, leading to a rise in manufacturing activity, boosting associated bearings demand. Although representing mature markets, these areas - along with Australia and Canada - will remain the most intensive users of bearings products, reflecting the advanced industrial and technological nature of their economies. Industrial applications will exhibit healthy sales gains. Demand for bearings used in industrial machinery will rise at an above-average rate, spurred by ongoing industrialization efforts in developing parts of the world. Although expected to register subpar sales gains, motor vehicles will continue to be a major market for bearings. Product demand will be fueled by an acceleration in global motor vehicle output. Ball bearings accounted for the largest portion of bearings sales in 2005. Ball bearings will maintain this position through 2015, due to their frequent use in a range of applications. Roller bearings, which comprised nearly 40 percent of demand in 2005, will post similar gains to ball bearings through 2010. Although generally not substitutable, these two principal anti-friction bearing designs are both used in a broad array of industrial original equipment and aftermarket applications. As a result, per annum growth prospects between the two will not vary significantly.