After a disastrous 2024, the precision gear market rebounded faster than expected. Robots, from industrial to humanoid, are behind this turnaround. This is just the beginning of a bigger change.
Just a year ago, the precision gearbox industry looked battered. In 2024, global sales revenue fell by more than 10 per cent. However, 2025 saw a clear turnaround. According to the Precision Gearboxes & Geared Motors report from Interact Analysis, revenues increased by 7.8 per cent year-on-year. This is a sign that the market is returning to growth, although it is still far from the stability of a few years ago.
As the authors of the report emphasise, robotics proved to be a key factor in the rebound. It already accounted for 35 per cent of global market revenue in 2025, compared to 33.6 per cent four years earlier. By 2030, this share is expected to increase to 46.3 per cent. Almost every second precision gear will therefore go to a robot.
Precision gears in 2025 – robotics behind the rebound
The industrial robot segment accounted for 27.3 per cent of sales of precision gearboxes and gear motors in 2025. Revenue reached $878 million, compared to $790 million a year earlier. This is a rebound, but still below the record $1 billion in 2023.
According to analysts at Interact Analysis, the decline in 2024 was mainly due to weak investment in key regions and the accumulation of excess inventory in 2023. However, last year brought a significant change. Asia saw a 16 per cent increase in sales of gear products for industrial robots, while the Americas and EMEA remained stagnant.
However, the outlook for 2026 is more optimistic. In the US, demand is being driven by reshoring (the return of manufacturing to the home country) and the rebuilding of production. In Europe, suspended automotive projects are returning. Asia is benefiting from the boom in electronics and semiconductors, driven by AI. Will this be enough for the market to return to its former records?
Read more: Remote monitoring, diagnostics and control of industrial robots
Mobile robots: slower, but still on the rise
Mobile robots remain one of the fastest-growing segments for precision gear manufacturers. Although shipment forecasts have been revised downwards due to tariffs and investment uncertainty, sales growth to this sector in 2025 was as high as 24.5 per cent, translating into $169 million.
Analysts predict an average annual growth rate of 20.1%. By 2030, this market is expected to exceed $400 million and account for 18% of the industry’s total revenue growth. Companies today are more likely to opt for phased implementations rather than one-off investments. This slows down the pace, but does not change the direction.
Humanoids: a niche that is set to explode
In 2024, humanoid robots generated only $16 million in revenue for gear manufacturers. A year later, this figure had already increased fivefold. Production rose from less than 2,000 to over 10,000 units. In 2026, revenues are expected to nearly double.
‘Currently, wave and planetary gearboxes dominate humanoid robot actuators,’ the report says. Cycloidal gearboxes are mainly tested in hip, knee and waist joints, where high torque and stiffness are important. By 2030, the first category of gearboxes will continue to dominate the market, but the cycloidal variants segment will grow in strength. Perhaps within a decade, we will see a shift in the balance of power.
Read more: Clone Alpha: a humanoid robot built with synthetic organs and artificial muscles
Not just robots. Who else will be driving precision gearboxes in 2025?
Other sectors are also growing besides robotics. The defence industry is benefiting from growing military budgets. Sales of precision gearboxes for military applications are expected to grow by an average of 5.9 per cent per year until 2030, faster than most non-robotics industries.
Semiconductors and electronics are also rebounding, driven by AI-related investments. Medical equipment, which is more resistant to economic cycles, is also performing better than the traditional machinery industry. Manufacturers of high-quality gearboxes tailored to specific purposes are likely to benefit particularly in this industry. The opposite is true in the food and packaging sectors. Customers in these industries are now choosing solutions that are ‘good enough’ for their needs. According to the report, this may lead to lower average prices and a slowdown in revenue growth.
The year 2025 brought relief after a difficult period. Industrial, mobile and humanoid robots are now setting the pace of change. At the same time, short-term barriers such as tariffs and delayed investments are still making themselves felt. However, the long-term trend towards precision automation seems unstoppable. Will the precision gear industry be able to take advantage of the positive economic situation to grow this year as well? We will find out in a few months.
