News: Global bearing market anticipates massive growth
What does the bearing market depend on?
Bearings can be found in all types of machinery, such as cars, airplanes, and electric generators. You will even find them in your house in the fridge and vacuum cleaner.
They are small circular supports that support rotational movement in machines. And you usually will find more than one per application, so it is a massive market.
This makes that the growth and decline of the global bearing marketing depends on the demand for production of these machines.
As we head into the future of clean energy and electric vehicles, machine production is expected to ramp. This is one of the reasons the bearing market is expected to rise with a CAGR of 9.5% until 2031.
What raw materials are impacted by the global bearing market?
Bearings are made from different types of metal alloys. Steel, copper, and aluminum are the main components used to create bearings.
Because there are various alloys that are created for different applications it is hard to say what the exact impact of this forecast will do to the price of these raw materials.
However, it is for sure that the creation of more bearings will increase demand and according to the demand and supply laws, if the production does not increase the prices will rise naturally.
It is expected that, because there are many projects in place to advance the industry, the production will also be ramped up significantly.
These materials are plentiful and there is not a serious scarcity problem that is expected.
What does this mean for the future of investments in steel, copper, and aluminum?
The financial expectations are often a signal for the market. The expectation is not a promise, but a good indicator of what is to come.
The bearing market is only a part of how the price of copper, price of aluminum and price of steel are determined. It is therefore safe to say that those prices will not grow with a CAGR of 9.1% as well.
However, because the industrial sector as a whole is expected to increase, these metals could be a well-worth long-term investment in your portfolio.
Positive news messages like this, when picked up by investors, will often trigger a short-term spike in pricing. When you are looking for a short-term strategy, it could be wise to see these raw materials as a buy-and-sell portfolio with the news as your decision-maker.
