Market Overview
A magnetic bearing is a system that uses a magnetic field to maintain a relative position to a stator or rotor. They are widely used in various industrial applications such as oil & gas, power generation, semiconductors, and biomedical, among others, owing to their advantages over conventional bearings. Magnetic bearings are used in watt-hour meters in homes, they are used in manufacturing turbomolecular pumps as well as manufacturing ventricular assist devices. Such a wide range of applications is boosting their demand in the market. Companies in the market are advancing these products and are constantly launching new products in the market. Players in the market are also investing in research and development activities. However, the installation cost of these bearings is high and is a challenge to market growth.
Key Trends
- One major trend Credence Research Inc. is expected to drive market growth is the growing innovation in the product in such a way that they provide improved efficiency.
- Another major trend is the growing demand for environment-friendly energy consumption. As the trend for solar and wind energy is rising, the demand for magnetic bearing is anticipated to surge as it is used for manufacturing flywheel systems that can be used to store green energy.
Economic Impact Analysis
Industries are starting to suffer as the economy slows down. The magnetic bearing market report, 2022-2028 is prepared after a thorough analysis of all these factors that can impact the economy.
- Recession
According to the Credence Research Inc. market report, the recession will significantly impact the global magnetic bearing market. The recession is mainly affecting the U.S. and European countries. However, even in other countries, the impact of recession can be noted. The overall manufacturing industry is also having sluggish growth as the manufacturing cost of goods is also increasing owing to a shortage of labor and disruption of the supply chain owing to a shortage in labor. Moreover, according to a survey released by the National Association of Manufacturers, the majority of the manufacturing leaders are stating that inflationary pressures are making recession arise by 2023. The top challenges faced by the manufacturing plants include an increase in raw material costs, rising freight costs, higher energy costs, and a shortage of skilled labor.
- Ukraine-Russia War Impact
Russia’s invasion of Ukraine has led to several crises, especially in the European region. Owing to this conflict, many companies have severed their ties with Russia. Two bearing manufacturers announced that they are shutting their manufacturing or sales/distribution offices in Russia. This has led to a fluctuation in the cost of various raw materials such as iron, steel, and other metals. According to several studies, there have been disruptions in the supply chain for the semiconductor industry. European countries highly depended on Russia and Ukraine for Oil & gas supply. This created a shortage of fuel in European countries as well as in countries that are dependent on Russia for oil & gas. Such factors are anticipated to cause huge fluctuations in the raw material cost, in turn affecting the manufacturing cost and profits.
- China COVID Outburst December 2022
The ongoing COVID-19 in China is estimated to hit the magnetic bearing market adversely in 2023. The surge in cases in China is anticipated to affect around 1 million people by 2023. It has been estimated that the manufacturing units will not be working at it full par and thus the distribution of goods will be delayed owing to the same. The government of China has not imposed a lockdown yet. However, the population is very concerned regarding their health. World Health Organisation has reiterated the importance of vaccination, especially in China. WHO has not yet released any regulation, but several countries’ governments are taking preventive measures to protect their people. As the number of cases rises, the supply chain is getting disrupted. The cost of various raw materials is anticipated to peak as there will be a shortage of various products.
Regional Analysis
In 2022, North America held the largest share of the magnetic bearing market. Magnetic bearings are used for manufacturing flywheel systems that are used for the storage of green energy. Increasing demand for the product in the power generation sector is driving market growth. Moreover, pharmaceutical and biotechnology companies are also conducting studies using magnetic bearings for manufacturing heart pumps such initiatives are anticipated to propel the market growth during the forecast period. Furthermore, the demand for these products is higher in semiconductors owing to the advantages they offer, boosting the growth of the magnetic bearing market.
STAR Analysis
- Situation
Our client wanted to enter into a partnership with a company manufacturing magnetic bearings market for the distribution of the product in the U.S. They were interested in understanding the demand for the product in that region. They also wanted a detailed analysis of the pricing of magnetic bearings regionally as well as by type of magnetic bearing.
- Task
The client wanted a report that would cover the demand and supply analysis of the market by region as they wanted to distribute the product in the market. They also wanted a detailed pricing analysis of the product by region and type i.e., active magnetic bearings and passive magnetic bearings.
- Action
The client got in touch with Credence Research Inc., which supported the client in understanding the demand of the market in various industrial verticals. The report “Global Magnetic Bearing Market, 2023-2030” published by Credence Research Inc. in 2023 provided a detailed analysis of the market scenario in terms of demand and supply of the product. Cross-pricing was provided to the client by region and type in a tabulated form. A detailed analysis of the factors affecting the pricing trend was elaborated. Additionally, the competitive landscape was also provided in detail so the client could get a clear understanding on the competition, especially in the U.S.
- Result
Credence Research Inc.’s thorough analysis report of the magnetic bearing market allowed the client to decide whether they wanted to enter the market for distribution of the product in the U.S. They were also made aware of the distribution cost of the magnetic bearing in the North American region.
