Adapting to Change: How Precision Reducer Manufacturers Drive Growth

[Erkan Teskancan]

## Adapting to Change: How Precision Reducer Manufacturers Drive Growth

Precision reducer manufacturers are taking strategic steps to evolve from being mere component suppliers to becoming actors that offer system-level solutions within the robotics ecosystem. Despite a challenging manufacturing economy over the past three years, which has limited the growth of the precision reducer market, these companies are implementing various measures to create new revenue streams.

### Adding Value to Robotic Customers with Sensor-Equipped Solutions

Companies have begun developing solution-oriented product portfolios, supported by additional sensors, to improve product performance and reduce integration efforts. Growth in the robotics sector is increasing demand for sensor-equipped reducers and actuators. Industry leaders such as Nabtesco, Harmonic Drive, and Nidec have developed sensor-equipped precision reducers and motors for the robotics market.

Demand for sensor-equipped precision reducers is increasing for humanoid robots and collaborative robots (cobots). While sensors are crucial for cobots used in delicate tasks like polishing and precision assembly, torque sensors are often essential in humanoid robot actuators for safety and precise control.

### Optimizing Performance and Maintenance with Software Solutions

Monitoring software and predictive maintenance functions, offered alongside sensors, are increasingly demanded by precision reducer users. This software analyzes critical sensor data to optimize reducer performance and prevent failures. The automotive and logistics sectors, in particular, require these technologies for continuously operating machinery and reducers.

Nabtesco's "virtual sensors," on the other hand, reduce the need for physical sensors by tracking speed and torque parameters through software-based analysis.

### Vertical Integration and Strategic Acquisitions

In addition to R&D investments, manufacturers are adopting a vertical integration strategy through acquisitions to expand their product portfolios and increase their competitiveness. For example, Wittenstein's acquisition of motion control supplier STXI Motion has led to the integration of precision reducer and motion control technologies, developing integrated actuator solutions for mobile robotic applications.

Schaeffler's acquisition of Melior Motion, meanwhile, enabled the company to rapidly increase its share in the robotic reducer market and quickly enter the humanoid robot sector.

### Establishing Local Operations

To enhance customer satisfaction, ensure fast delivery, and reduce costs, precision reducer manufacturers are opening production and service centers close to key markets. The Asia-Pacific and Americas regions, in particular, hold high growth potential in the coming years.

For example, Schaeffler established a subsidiary in China focusing on the production of bearings and reducers for humanoid robots. Leaderdrive, in collaboration with Tier 1 automotive supplier Minth Group, opened an assembly plant for humanoid robot actuators in the USA. Nidec began producing strain wave reducers in China at the end of 2024.

### Conclusion and Future Outlook

Sensor-equipped products and software-supported functions demonstrate the intertwining of mechanical engineering and digital technologies. Reducers are transforming from passive components into active, data-generating assets. Companies that prioritize hardware and software integration gain a competitive edge, while those that remain solely hardware-focused face the risk of standardization within the market.

Therefore, precision reducer manufacturers are evolving from being mere component suppliers to system integrators. This is not a reaction to uncertainties in the manufacturing environment, but rather a deeper awareness of the importance of integration, digital intelligence, and proximity to the user in creating value.