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CBI | Market Intelligence Product Factsheet Cloves in Germany | 1
CBI Product Factsheet:
Bearing Components in Europe
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 2
Introduction
Europe is a large production region for anti-friction bearings and therefore it is a considerable market for bearing
components. Among the most interesting countries in Europe are Germany, the United Kingdom (UK), France, Italy and
Austria. A considerable share of bearing components already comes from low-cost locations in South-East Europe, e.g.
Romania, Slovakia, Bulgaria, Poland, Bosnia Herzegovina and Croatia, but also further away, like Thailand, India, Turkey,
and China. Developing Country exporters must be ready to compete with bearing component exporters from these
countries.
Product description
Bearing components are parts of (anti-friction) bearings; for example forged rings, turned rings, super finished rings,
cages, balls, rollers, cast iron housings, plastic housings, and rubber seals.
Anti-friction bearings are metallic or ceramic precision-made devices that allow constrained relative motion between two
parts due to the placement of round elements between these two parts. The relative motion of the pieces causes the round
elements to roll, or tumble, with little sliding. They enable machinery to move at very high speeds and carry high loads
with ease and efficiency. Bearings are found in applications ranging from automobiles, trains, and aeroplanes to
computers, construction equipment, machine tools, refrigerators, and ceiling fans.
When ‘bearing components’ are referred to in this survey, it involves the selection of the products in Table 1, unless stated
otherwise. For more information on complete anti-friction bearings, please refer to the CBI MI portal. Table 1 also shows the Prodcom codes used for the production and apparent demand statistics of bearing parts.
Table 1: Selected products, based on CN and Prodcom nomenclature
Subsector and
product group
CN code Prodcom code Description
Bearing parts
84829110 n.a. Tapered rollers for bearings
84829190 29143130 Balls, needles, and rollers for bearings (excl.
tapered rollers and steel balls of heading 7326)
84829900 29143150 Parts of ball or roller bearings (excl. balls, needles,
and rollers) not elsewhere specified.
Source: Globally Cool, based on CN and Prodcom Nomenclature
Product specification
The specifications of bearing components as required by European buyers are described below. These involve requirements
related to the material used, dimensions and finishing of the parts, the processing steps, documentation, and packaging.
Material and design
Bearing components are typically made of bearing steel, which is a type of alloy or low carbon steel. Some applications
require case or thoroughly hardened high carbon bearing quality steel. Depending on the size of the bearing to be
produced, appropriate quantities of alloying elements are added to the steel melt to ensure optimum properties in the
finished product.
In general, material requirements can vary from customer to customer. Bearing manufacturers (the main customers) that
buy component parts from a subcontract supplier (the producer or exporter of bearing parts) will specify the design as well
as the materials and will require conformity certification. The European bearing manufacturer will often allow the
subcontract supplier to use bearing steel only from suppliers that are approved by the European bearing manufacturer,
based on the quality of the steel, as the chemical composition is of critical importance to them. In addition, the European
bearing manufacturer may also specify their approved suppliers for wire or castings.
The material grades may differ for castings, but high-strength Grade 250 (BS EN1561:1997) cast iron is often desirable.
For forge-rolled rings, SAE 52100 and 100Cr6 are the normal grades for bearing steel.
Processing
To produce bearing components such as rings and rollers, the global bearing manufacturers set high standards for the
equipment infrastructure. As an indication, to provide structural and metrological analysis alone will require a number of
quite expensive purpose-made instruments. For cages, 3D modelling and Coordinate Measuring Machines will be required.
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 3
In addition, the global bearing manufacturer may also specify the processing steps, e.g. certain customers may have
specific heat treatment requirements. This also requires a certain level of investment, as controlled tempering and
quenching must be guaranteed. “Super cooling” may also be a requirement in some cases.
Documentation
Bearing manufacturers will require associated reports about the quality and specification of the material used, registration
of critical process parameters, test reports, and also traceability reports for the batches of products made.
Labelling and packaging
In general, multi-packaging is used for smaller parts and single packaging is applied to large parts. Usually, bearing parts
are coated with a rust inhibitor before being packed and shipped. Packaging consists of an interior package and an outer
package. The interior package is oilpaper or a plastic tube/envelope, to avoid the dispersion of the protective oil used, or
sometimes hermetically vacuum-sealed synthetic pouches. The outer package is usually made up of carton lined with
plastic sheeting and should contain brand name and type number. The package for ocean transportation is a wooden, iron
or plastic pallet, wrapped in plastic sheeting and packed with metal strips. The sizes of the boxes depend on the weight per
box and handling possibilities. Moreover, it may well be the case that the customer has his own (additional) packaging
requirements and preferences. Batch numbers on individual boxes may also be a requirement.
Quality
Quality standards for individual companies differ across countries in Europe. Quality standards are highest in Germany,
Austria and northern Europe. However, note that the large multinational bearing producers work with uniform quality
standards that will apply globally.
Picture 1 – Example of bearing components; components of a ball bearing
Picture 2 – Example of bearing components; components of a roller bearing
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 4
What is the demand for bearing components in Europe?
Imports
Figure 1: Imports to Europe of bearing components, by main origin, € million, 2010-2014
Source: Trademap
Figure 2: Main importers of bearing components, € million, 2014
Source: Trademap
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2010 2011 2012 2013 2014
Europe
Developing Countries
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Developing Countries
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CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 5
Figure 3: Absolute Developing Country import growth 2010-2014, € million (countries in range of largest importers), of bearing
components
Source: Trademap
European imports of bearing parts reached €2.5 billion in 2014, following an upward trend since 2010. Only 2012
recorded a small decline relative to the previous year. Average annual growth in 2010-2014 was 6.8%.
The Developing Country share in European imports has been stable at 16% for the last several years, having
increased from 14% in 2010. Still, most imports originate from intra-European sources (almost 80% of all imports).
For the coming years, the Developing Country share is forecast to grow to 17%.
The leading importer is Germany (30% of European imports), followed by France (18%), Italy and Slovakia (8%
each), and Austria and Romania (6% each).
In terms of Developing Country imports, Germany is leading (25% of European imports from Developing Countries),
followed by Italy (18%), Austria (16%) and France (9%).
The import of bearing components is expected to show some growth in the next few years, in the range of 0-2% per
year.
Leading suppliers
Leading suppliers are mainly from developed countries. Germany, Slovakia, Italy, Romania and France are in the top
6 suppliers. Some Developing Countries also appear in the list of leading suppliers: China, in the 4th position (€207
million), and India in the 13th position (€46 million). Japan and USA are the main suppliers in the category “Rest of
the world”.
Slovakia’s and Romania’s leading positions are a result of 1) trade of bearing parts (cages) from Schaeffler Slovakia
and Romania to Schaeffler Germany, 2) imports from several independent Slovakian bearing parts producers (see
below for some examples), and 3) imports of parts from a Romanian trading company (see link below).
In addition to China and India, some other Developing Countries export bearing components to Europe: Bosna and
Herzegovina (€35 million), Ukraine (€33 million) and Turkey (€12 million).
The list of Developing Country suppliers is not expected to substantially change in the next few years.
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Tip:
Benchmark your company against your peers from China and India, but also against your peers from Germany,
Slovakia, Italy, Romania, France, Bosnia Herzegovina and Croatia. Bearing component manufacturers in Slovakia
include PSL, Kinex, Omnia KLF. Romania has a few independent bearing (and parts) manufacturers, such as SC
Rulmenti (part of URB-Europe with plants in Romania, Turkey, and Hungary, part of the Turkish Kombassan
Holding), URB, and URB Rulmenti Suceava; most of their exports are channelled through Meximpex. Companies
in Bosnia-Herzegovina are TMD Group, and Unis Tok, in Croatia especially Fero Impex.
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 6
Exports
Figure 4: Exports of bearing components from Europe, by main destination, € million, 2010-2014
Source: Trademap
Figure 5: Main exporters of bearing components, € million, 2014
Source: Trademap
The pattern of European exports of bearing parts over the period 2010-2014 is more or less the same as the pattern
for European imports. It shows Europe’s participation in the global trade of bearings and parts thereof. European
exports reached €2.1 billion in 2014. Average annual growth in 2010-2014 was 2.8%.
Most exports go to intra-European destinations (nearly 75% of all exports). The Developing Country share in
European exports varied from year to year, but moved in a range of 14-16%. For the coming years, the Developing
Country share is forecast to remain stable at 16%.
Evidently, the leading exporter is Germany, accounting for one third of total exports from Europe, followed by Italy
and France (10% each), Romania (9%) and Slovakia (8%).
Germany’s leading position as a bearing parts exporter is a result of Germany’s dominant role in bearing production
in Europe. The country is the largest bearing producer in Europe and also produces a lot of high-end bearing
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2010 2011 2012 2013 2014
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Developing Countries
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CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 7
components. These components are exported by Schaeffler to Schaeffler’s assembly locations in other European
countries, for example, and even to countries in other continents. SKF is also a leading manufacturer in Germany with
their products being exported from there to all parts of the globe.
German exports to Developing Countries are relatively massive; they represent more than 50% of European exports
to Developing Countries. France is in 2nd position (13%), followed by Italy and the Netherlands (7% each).
European exports of bearing parts are expected to continue to grow over the next few years, between 1-2% per year.
Production
Figure 6: European production of bearing components, 2010-2014, € million
Source: Eurostat Prodcom (2015)
Figure 7: Main European producers of bearing components, 2014
Source: Eurostat Prodcom (2015)
European production of bearing components totalled €2.1 billion in 2014, after an average annual small increase of
1.3% in the period 2010-2014. Production increased sharply after the dip in 2009, however after the peak in 2011
the year 2012 was very weak with a drop of 16%, as a result of falling demand for bearings in main end user
industries, such as automotive and engineering. Production regained growth in 2014 (+7.7%).
It is difficult to give a general picture of production developments in Europe, as most countries have their one specific
situation in terms of production, local demand and import versus export. For example, the situation in France, Austria
and the UK is quite similar. These countries have a considerable production base of bearings and therefore requires a
1.700
1.800
1.900
2.000
2.100
2.200
2.300
2010 2011 2012 2013 2014
Germany
33%
France
12%
Slovakia
10%
Romania
9%
Sweden
8%
Poland
6%
Italy
5%
Netherlands
3%
Spain
3%
United Kingdom
2%
Bulgaria
2%
Croatia
2%
Other
5%
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 8
lot of bearing components. As local production of the components is not enough to fulfil local demand, the countries
are net importers of bearing components.
Germany accounted for 33% of total European production in 2014 with France, Slovakia, Romania and Sweden
following at quite some distance. While German and Italian output show a downward trend in the period under
review, production in several other countries (France, Slovakia, Romania, Sweden) increased.
While production only increased by 1.3% per year on average, imports were up by 6.8%. This is evidence for the
growing role of trade of bearing components, which also definitely includes imports from Developing Countries.
Apparent demand
Figure 8: Apparent demand in Europe of bearing components, 2010-2014, € million
Source: Eurostat Prodcom (2015)
Apparent demand in Europe totalled €2.4 billion in 2014, after an average annual increase of 5.3% in the period
2010-2014. After sharp growth in 2010-2011, which compensated for the huge drop in 2009 (impact of the financial
crisis), demand bounced back in 2012 as a result of falling demand for bearings by main end user industries, such as
automotive and engineering. Demand regained growth in the years 2013-2014, which was the result of an overall
growth in the motion control industry in these years.
Germany is the largest market for bearing components, at some distance followed by France. Number three is
Slovakia, followed by Austria, Sweden, Romania and the UK. This list of countries is also representative for the
bearing production in Europe.
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1.000
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2010 2011 2012 2013 2014
Tip:
Figure 7 reveals that in addition to Germany, there is also considerable production output in France, Slovakia,
Romania and Sweden. The presence of producers in these countries offers subcontracting opportunities to
Developing Country exporters.
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 9
Macro-economic indicators
Figure 9: Real GDP, % change from previous year
Source: OECD Economic Outlook 96 database
• The major determinant of the demand for bearings and bearing components is industrial spending activity, which
in turn is stimulated by economic growth. As Figure 9 reveals, GDP is expected to show continued growth year-on-
year. Evidently, it is a profound basis for continuous import growth in the coming years.
The profitability of bearing components imports is influenced by the €:US$ exchange rate, as many components
sourced globally are paid in US$. While previously the €:US$ exchange rate was not forecast to go beyond 0.80 until
2020, this did happen in 2015, with an exchange rate of 0.90 in June 2015. This development has a large effect on
the price level of imports. Especially if this situation will continue, it will have a negative impact on the level playing
field of European imports paid in US$, versus local European production.
What trends offer opportunities on the European market for bearing components?
Bearings manufacturers in Europe are strongly investing in product development. Innovation in bearing technology is
driven by issues such as long service life, low torque, less maintenance, lighter, smaller, extended capabilities
(sensors for example, to measure parameters such as speed, load, temperature or overall bearing condition), and
lower overall cost. Many innovations come from the leading bearing manufacturers, such as this innovation from SKF. In
order to support product development, new test equipment has also been developed.
The European market is characterised by a growing demand for cost-effective bearings, while advances in materials
have extended the operating life of anti-friction bearings sold in Europe, even under harsh operating conditions. One
key area of advance is the wind power segment, which can be read in this Schaeffler publication.
Continuous improvement systems are implemented to enhance production efficiency while reducing costs. Look at this
example from Schaeffler United Kingdom.
It is expected that future bearing materials will improve energy-efficiency and boost performance via increased load-
carrying capacity. Bearing technology advancements entail a focus on the use of high hardness coatings, ceramics,
and new speciality bearing steels. New elements that are expected to become the main focus in the future are sensor
technology and high temperature thermoplastics.
In the medium to long term, it can be expected that buyers will increasingly look at Corporate Social Responsibility
(CSR) as a fundamental issue in the selection criteria for new suppliers to Europe.
For more information, refer to CBI’s Trends for Anti-Friction Bearings.
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2015
2016
Tip:
Prospective Developing Country exporters may seek opportunities offered by European bearing manufacturers
subcontracting the supply of bearing part production
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 10
What requirements should bearing components comply with to be allowed on the
European market?
Requirements can be divided into: (1) musts, which are legal requirements you must meet in order to enter the market,
and 2) additional, non-legal requirements, which are those most of your competitors have already implemented, in other
words, the ones you need to comply with in order to keep up with the market.
You can find a general overview of the EU buyer requirements for motion control on the Market Intelligence Platform of CBI
including many tips for how to get more details or how to meet these requirements. A summary of the requirements for
bearing components follows below.
What legal requirements must my product comply with?
For bearing parts, there are no specific legal market access requirements in place.
As soon as the component becomes part of a finished bearing, the exporter has an obligation to export a safe product
to Europe.
The “Liability for defective products (Directive 85/374/EEC)” refers to finished products. The Product Liability Directive
states that the European importer is liable for the products put on the European market. The European importer,
however, can, in principle, pass on a claim to the producer/exporter.
The REACH directive (Directive 1907/2006/EC) must be taken into account for the protective and anti-corrosion oils
used in the packaging. In practice, this means that an exporter from outside Europe has to provide information on
the chemicals/oils used in the product.
Finished bearings intended for automotive applications must have a so-called ‘type approval’ following ISO/TS 16949.
In this case, the bearings will have to undergo specific application and endurance testing.
Wood packaging materials used for transport (including dunnage) (Directive 2000/29/EC): Europe sets requirements for
wood packaging materials (WPM) such as packing cases, boxes, crates, drums, pallets, box pallets, and dunnage
(wood used to wedge and support non-wood cargo).
Another packaging-related directive is the general Directive 94/62/EC on Packaging and Packaging Waste. This directive
prescribes the marking of the kind of packaging material used and maximum levels of heavy metals in the packaging
material.
An 8.0% duty is levied on European imports of bearings from third-party countries. Several countries benefit from a
preferential 0% tariff, under GSP or bilateral arrangements, for example Turkey and South Africa.
What additional requirements do buyers often have?
Customers’ primary requirements will be related to the technical aspects of the part itself; material, dimensions, and
finishing must meet the customer’s specifications. Refer to the “Product specification” section for more information on
customer requirements.
All these issues are key in the sample phase. If the customer approves the samples and all other conditions are
agreed upon, the contract can be signed. After that, the supplier’s main challenge is to deliver the products according
to the agreed specifications, delivery times, and volumes.
Please refer to the EU Export Helpdesk, the ITC Market Access Map and the ITC Standards Map for more information
related to gaining access to the European market.
Tip:
With regard to packaging, the requirements are often provided by the customer. If this is not the case, then ask
what they would prefer. You have to be careful to provide the right amount of packaging, not too little but also
not too much, since it is expensive to dispose of packaging in Europe.
Tip:
Product samples should be accompanied by inspection reports that are accurate and correspond exactly to the
samples.
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 11
What do the trade channels and interesting market segments for bearing parts look like
in Europe?
Figure 10: Trade structure for bearing parts in Europe
Within the context of bearing manufacture, there may be opportunities for producers of bearing components such as rings,
rollers, balls, and cages, as none of the bearing producers make all of the components themselves. The main difference
between the large and small to medium-sized manufacturers is the fact that only the small and medium-sized ones are
likely to outsource complete bearing assemblies. On the other hand, the larger producers often only outsource component
production.
For more information, also refer to CBI’s Market Channels and Segments for Anti Friction Bearings and the CBI document
on Finding Buyers in the Motion Control Industry. Another important resource is the CBI document on Doing Business in
the Motion Control Industry.
Business landscape
Further details on the business landscape in the focus countries in Europe are outlined below, as each country has its own
characteristics.
Large producers of bearings
Germany is the home country of the Schaeffler Group, which is a merger of the two German bearing manufacturers
FAG and INA. Production output in Germany is amplified because of the presence in Germany of the Schaeffler Group
(5 or more production facilities). Other global bearing manufacturers with production facilities in Germany include
SKF (has three plants in Germany), NSK (one plant), NTN (two plans) and JTEKT (one facility).
France is the home country of SNR, the original French bearing manufacturer that used to be affiliated with French
car manufacturer Renault. About 40-50% of production output in France comes from the three NTN-SNR factories.
Several of the other leading bearing manufacturers also have a production facility in France: JTEKT, SKF, INA,
Timken. However, it is worth noting that many of the major supplier and engineering decisions are made elsewhere.
Italy is not a home country to any of the world’s leading bearing companies. However, as the country is home to a
large automotive and engineering industry, several of the European market leaders produce bearings in Italy:
Timken, INA, SKF. Note that for these three factories, most of the major supplier and engineering decisions are made
elsewhere.
The large producers in Austria are SKF and Schaeffler (FAG-INA), who have their headquarters elsewhere in Europe.
SKF Austria represents more than 50% of total production output in Austria; more than 90% of SKF Austria’s
production is destined for export markets. Schaeffler represents some 30-40% of Austrian production. Two of FAG-
INA Austria’s main suppliers are the TMD Group from Bosnia-Herzegovina and FeroImpex from Croatia.
United Kingdom: NSK has had a sizeable presence in the United Kingdom since they bought RHP (the British bearing
manufacturer), but also most of the other leading bearing manufacturers have a production facility in the United
Kingdom: Timken, JTEKT, INA and SKF. Note that some of the major supplier and engineering decisions are made
elsewhere.
In Europe as a whole, the market is dominated by Schaeffler and SKF; together they represent between 40-50% of the
market. They are followed by NSK, NTN, Timken, SNR and JTEKT.
Developing
country
producer
of bearing
parts
OEM market
(equipment
manufacturers)
or aftermarket
Large producer of
bearings
Developing
Country
Trade in the UK Market
segments
in Europe
Distributor of
bearings
Small and
medium-sized
producer of bearings
Producer/importer of
bearing parts
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 12
Medium-sized producers of bearings
Europe hosts a number of small and medium-sized bearing producers who have mostly specialized in a certain range of
bearings. These smaller manufacturers are more willing to buy complete bearings that will be branded in their name and
packaged to their specifications. Although they sell their bearings all over the world, their headquarters and production
facilities are mostly in Europe.
Germany: GMN, HFB, IBC, SLF
Italy: CPM, FARO Industriale, Meter Bearings, ICSA, Nadella
Austria: NKE, APB, STC
United Kingdom: Cooper, Phoenix, HB Precision, Revolvo (taken over by Timken in 2014), Gamet
Importers and/or producers of bearing components
Germany: IsoMetall, MPT, Ziller
France: CIMAP, Rollix
Italy: Bifrangi, Martin Balls, Neumayer Tekfor Group
United Kingdom: Stokes Forgings, Atlas Ball
Such companies can be interesting prospects for bearing parts manufacturers from developing countries.
What are the market prices for bearing components?
To establish an export price, you need to consider many of the factors involved in pricing for the domestic market:
The better your market intelligence, the better your chances of obtaining orders at profitable levels;
Pricing should be calculated by combining process costs, raw material costs, and indirect costs. These are presumably
used in arriving at domestic selling prices. You should add the costs incurred in delivering and supporting your
activities in a foreign market;
Use contracts with variable material costs. It is important to set the reference-index for the fluctuations in agreement
with the buyer. Use, for example, the steel index of the London Metal Exchange;
Bear in mind that it is neither easy nor good business practice to increase prices once you have agreed to deliver at a
certain price. For export customers, you may need to be prepared to accept lower margins than usual;
The negotiated price may also depend on the delivery conditions, the means of payment, credit terms and currency
risks, quantities, and the means of transport;
As currency exchange rates may fluctuate, you should cover this risk by including the currency deviation risk in the
quotation. A quote should also be valid for only a specific length of time (for example, two months).
Useful sources
Bearingnet offers lists of bearing companies and also bearing news.
Drives & Controls - the leading magazine for automation, motion engineering, and power transmission in the United
Kingdom. They also have an exhibition every other year.
Eurostat - official statistical office of the European Union. It is possible to register for free to obtain large data
collections.
Eventseye - trade show directory; search by country and industry for other trade shows.
Hannover Messe - world’s leading annual industrial technology exhibition with numerous product-specific trade fairs,
held in Hannover, Germany in April. A dedicated MDA (Motion, Drives and Transmissions) fair is part of the Messe
every other year.
Tip:
Probably the best method for Developing Country producers, if possible, is to become a domestic supplier to one
of these global companies and to obtain local approval for their products. In this case, the Developing Country
producer is often required to source the bearing steel from approved suppliers. A company that is supplying one
of the world’s leading bearing manufacturers will be subject to audits and will have to have very tight quality
control procedures. Following local approval, the component producers could seek a direct relationship with the
particular companies’ facilities in Europe.
Tips:
Use contracts with variable material costs.
Include the currency risk in the contract.
CBI | Market Intelligence Product Factsheet Bearing Components in Europe | 13
ITC International Trade Statistics - after registration, this source offers global trade statistics and also lists of
importers/exporters by product and by country.
IEN Europe and PCN Europe - pan-European industry magazines from the same publishing house.
Kwintessential - provides practical tips on business culture and etiquette.
VDMA - German Engineering Federation
CBI Market Intelligence
P.O. Box 93144
2509 AC The Hague
The Netherlands
www.cbi.eu/market-information
This survey was compiled for CBI by Globally Cool – Creative Solutions for Sustainable Business
in collaboration with CBI sector expert Malcolm Sheryn
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
January 2016
