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GaN (gallium nitride) chips, with their core advantages of low loss and high power density, have overcome the limitations of traditional silicon-based devices, emerging as the key development direction for medium and low-voltage motor drives. The core advantages of GaN chips include: Low switching loss: Zero reverse recovery characteristic, no tail current, low switching loss of capacitor, optimized voltage-current overlap loss, significantly reduce the total loss of the system. High-frequency adaptability: It supports higher PWM frequency (far exceeding the 6-16kHz range of silicon-based devices). The frequency increase results in minimal power loss increment, effectively reducing motor current ripple and torque ripple while enhancing control precision. High power density: It enables smaller passive components (inductors and capacitors) to achieve higher output current under the same conditions, supporting greater loads. Tough environment and fast response: It features low temperature rise, superior thermal resistance, rapid dynamic response, and adaptability to complex operating conditions.   Comparison of Core Parameters of GaN and Si-based (IGBT/MOSFET) Motor Drivers contrast ratio GaN-based motor drive Si-based motor drive (IGBT/MOSFET) I. Basic Characteristics of the Materials energy gap 3.4eV (wide bandgap, high temperature and high pressure resistant) 1.12eV (narrow band gap, low tolerance limit) heat conductivity Approximately three times that of silicon (high thermal conductivity) Reference value (approximately 150W/(m·K), with weak conductivity) electron saturation velocity 2.8×10⁷ cm/s (high-frequency switching supported) Approximately 1×10^7 cm/s (high-frequency performance limited) II. Switch Performance maximum switching frequency Supports MHz level (typically 100kHz+; some scenarios reach MHz) Rated at 20kHz, but typically operates between 6-16kHz (high-frequency operation causes significant power loss) reverse recovery charge Zero (no reverse recovery loss, supports high di/dt/dv/dt switching) IGBT requires parallel diodes, which still incur reverse recovery loss; MOSFET’s body diode has a high Qrr. dead time Minimum 14ns (reduces torque harmonics and vibration) 100-500ns (may cause current discontinuity, leading to sixth-order torque harmonic) III. Loss Characteristics Switching loss reduction (compared to silicon) Discrete regimen reduced 39%(11.6w vs 19w), combined regimen reduced 24.5%(12.3w vs 16.3w) Baseline value (high frequency causes high loss ratio, limiting efficiency) frequency enhancement loss increment The power increase is only 0.7W when the frequency is increased from 20kHz to 40kHz, with the loss increment reduced by 83%. The power output increases by 4.1W when the output power is increased from 20kWz to 40kWz (with loss significantly increasing as frequency rises). On-resistance (RDS(on)) Based on two-dimensional electron gas (2DEG), it is far lower than silicon devices under the same specifications. The on-resistance (RDS) of MOSFET increases with current and temperature, while IGBT maintains a constant saturation voltage but exhibits tail current loss. IV. Thermal Properties device thermal resistance (Rth (i-s)) As low as 0.5K/W (flip-chip/CCP, short thermal path) 1.5-2K/W (traditional package with low heat dissipation efficiency) Differences in junction temperature with the same power consumption Low body temperature (20-40℃) (rapid heat conduction, minimal heat accumulation) The temperature is too high and may trigger overheating protection Demand for heat sinks No heat sink required for devices below 200W; the 1kW sealed package solution eliminates the need for a heat sink when current is below 18A. Medium and low-power systems still require heat sinks, while high-power large-scale cold air/liquid cooling modules V. System Design Features Volume of passive components Replacing 330μF electrolytic capacitor with 22μF ceramic capacitor reduces inductor size (lowering capacitive-inductive requirements at high frequencies). Rely on large volume electrolytic capacitors and inductors (requiring current ripple simulation at low frequency) Power density (output current) The discrete solution delivers 3.5A higher effective current value ratio (Si) while supporting greater load capacity at identical temperature rise. Reference value (current boost limited by power loss and heat dissipation) electromagnetic interference High integration (e.g., half-bridge sealed), allowing internal motor embedding to reduce cable length and minimize EMI. Discrete layout, long cable length, strong EMI radiation at high frequency VI. RELIABILITY temperature tolerance The temperature tolerance is far superior to that of Si-based devices (stabilizing operation under high load) Low temperature tolerance, life shortened at high temperature device lifetime (Arrhenius model) Life doubles for every 10℃ drop in junction temperature (lower junction temperature prolongs lifespan) High body temperature and relatively short lifespan Mean Time Between Failures (MTBF) Higher (low loss + low thermal stress, reducing failure risk) Lower (higher thermal stress and failure probability due to wear) Typical manufacturers and solutions of GaN TI DRV7308 Integrated GaN FET pre-driver with three-phase modulation and field-oriented control capability. 12mm× 12mm QFN package, with over 99% efficiency in 250W motor drive applications, eliminating the need for a heat sink. Innosense Low-Voltage Solution (48V-60V Input, Compatible with 1kW Class Motors) Discrete scheme (INNDMD48V25A1): 6 INN100EA035A+3 INS2003FQ, the total loss is 11.6W (Si scheme 19W) at 40kHz/20A, and the temperature rise is only 10℃ when the frequency is increased to 40kHz. Encapsulation scheme (INNDMD48V22A1): 3 ISG3204LA half bridge GaN encapsulation, total loss 12.3W (Si scheme 16.3W) at 40kHz/20A, no radiator is needed below 18A. Companies including Texas Instruments (TI), Infineon, Innosense, EPC, and Nanoware are actively developing applications of gallium nitride (GaN) in humanoid robots, particularly for motor drive systems.
The 48V architecture’s core principle is to’ increase voltage while maintaining power output to reduce current’, delivering a series of key advantages: 1.High efficiency, low loss: (1)According to the DC power formula P = V × I, when the power remains constant, the voltage increases fourfold (from 12V to 48V), while the current decreases to one-fourth of its original value. (2) According to Joule’s law, the heat loss in a wire (P_loss = I² × R) is proportional to the square of the current. When the current is reduced to one-fourth, the line loss decreases to one-sixteenth of the original, significantly improving energy efficiency. Lightweight and low-cost: (1) Smaller currents mean thinner wires (with smaller cross-sectional areas) can be used. (2)This directly reduces the weight of the system’s cables and material costs, which is crucial for weight-sensitive fields such as automotive and robotics. 3.High power density: (1)For robotic devices, smaller motors and thinner cables enable more compact and lightweight joint designs, enhancing both flexibility and integration. Security and Inheritance: (1)48V serves as the maximum safe voltage in typical applications, eliminating the need for stringent electrical safety measures and thus reducing system complexity and costs. (2)It is a natural evolution of existing low-voltage systems (12V/24V), maintaining technical continuity (with lead-acid batteries rated in multiples of 6V).  
Development line: from meeting basic needs to pursuing extreme efficiency, application field from fixed facilities to mobile platform. Early standards (early 20th century): 48V DC became the standard voltage for fixed telephone central offices, laying the foundation for modern telecommunication networks. The evolution of the automotive industry: 6V era: Three 2V lead-acid batteries connected in series, which was the early standard. 12V Era: With the proliferation of in-vehicle electrical systems and rising power demands, the configuration evolved to six batteries connected in series (6V×2). 24V Era: Commercial vehicles, due to their high power demands, adopt a 12-cell series battery configuration (12V×2) to reduce current and improve efficiency. Data Center Revolution (circa 2016): Spearheaded by Google and the Open Compute Project (OCP), this initiative addressed the massive power consumption of servers by implementing 48V power distribution, which significantly reduced energy waste and operational costs. Automotive Breakthrough (2023-2024): Tesla’s Cybertruck became the first production vehicle to fully adopt a 48V powertrain, replacing the decades-long 12V system and demonstrating its immense potential in mobile platforms. Robotics adoption (since 2020): Industrial, logistics, and service robots have adopted the 48V architecture to achieve higher efficiency, lighter weight, and more compact designs. The inaugural year of humanoid robotics (2024): Leading manufacturers including Tesla’s Optimus and XPeng’s IRON have all adopted the 48V battery architecture, establishing it as the new benchmark for advanced mobile robotics platforms.   The 48V architecture serves as the foundational cornerstone for robots to achieve “compact size, extended battery life, and intelligent interaction”.  
As a core component in transmission systems, reducers play a pivotal role in reducing rotational speed and increasing torque. Their technical performance directly determines the operational accuracy and stability of downstream equipment. In the humanoid robotics sector, precision reducers are among the key components, accounting for approximately 16% of the cost structure. The transmission accuracy and reliability of these reducers directly impact the flexibility of humanoid robot movements and their adaptability to various scenarios. Market demand analysis indicates accelerated global industrialization of humanoid robots, with a projected 10-billion-yuan incremental market by 2030. As domestic policies increasingly support the robotics industry, the imminent mass production of humanoid robots is creating a window of explosive growth for precision reducers. From a technical perspective, the precision reducer market has long been dominated by foreign enterprises: Harmonic reducers are led by Harmonic Drive with a global market share exceeding 80%; in the RV reducer sector, Japan’s Nabtesco holds over 40% of the market share in China; the precision planetary reducer market is also primarily dominated by Japanese and German manufacturers. This landscape not only highlights the urgency of domestic substitution but also sets a benchmark for domestic manufacturers to achieve technological breakthroughs. From the perspective of domestic substitution, domestic manufacturers have achieved key breakthroughs in technology and market by 2025: the domestic harmonic reducer market size reached 2.49 billion yuan in 2023, with a compound annual growth rate (CAGR) of 16.54% from 2019 to 2023; the RV reducer market size in China is expected to reach 6 billion yuan by 2025, with domestic manufacturers such as Huan Dong Technology continuously approaching international advanced levels in technical capabilities; the global market size of precision planetary reducers grew from 929 million yuan to 1.376 billion yuan from 2020 to 2024, with a CAGR of 10.32%. Domestic high-end products have reached international advanced levels in key indicators such as transmission accuracy, efficiency, and noise, achieving import substitution in some fields, and the localization rate is gradually increasing. At this pivotal juncture for the industry, the growing demand for humanoid robots and breakthroughs in domestic reducer technology have created a synergistic effect, propelling the domestic substitution process into a critical phase of implementation and harvest. Against this backdrop, this report provides an in-depth analysis of the growth drivers, technological pathways, and domestic substitution progress in the reducer sector, offering essential insights for industrial research and investment decisions.
1.1 The reducer serves dual functions of speed reduction and torque enhancement, with extensive downstream applications. As the pivotal component connecting power sources to actuating mechanisms, gear reducers function through multi-stage gear meshing to reduce input speed while amplifying output torque, making them indispensable in mechanical transmission systems. Given that most industrial machinery operates under high-load, low-speed conditions where direct prime mover drive is impractical, gear reducers are essential for achieving speed-torque matching. Through precision gear ratio design, they proportionally decrease input speed while proportionally increasing output torque, ensuring optimal alignment between power parameters and load requirements. As the core element of modern mechanical transmission, the performance of gear reducers directly determines the transmission efficiency, operational accuracy, and equipment reliability of power systems. This makes them irreplaceable in critical applications such as automated equipment, construction machinery, and transportation systems.   The market size of China’s reducer industry is showing a steady upward trend, with a long-term growth rate maintained at around 5%. According to data from Rui Guan Consulting, the market size of China’s reducer industry reached 144.7 billion yuan in 2024, and the growth rate has remained within the 5% range in recent years. Influenced by the reduction in domestic labor force and the deepening of population aging, manufacturing enterprises are accelerating the transition to automated production to reduce labor costs and improve production efficiency, which directly drives the demand growth for core components of industrial automation such as reducers. Meanwhile, domestic reducer manufacturers are continuously enhancing the market competitiveness of domestically produced reducers by introducing, digesting, absorbing, and innovating advanced foreign technologies, promoting the process of product localization and substitution, and gradually reducing dependence on foreign technologies.   The downstream applications of reducers cover numerous industries and play a crucial role. With their excellent load-bearing capacity, reliability, durability, and precise control over speed and torque, reducers are key to enhancing the efficiency of entire production systems across various industries. Their downstream applications primarily include lifting and transportation, cement and building materials, robotics, heavy mining, metallurgy, and power generation, among other sectors of the national economy and defense industry. Among these, lifting and transportation, cement and building materials, and robotics are the most core application fields for reducers. With China’s sustained economic growth and the deepening of industrial automation, the gross domestic product and fixed asset investment have been rising year by year. As a key basic component of industrial equipment, the market demand for reducers has also been steadily increasing 1.2 Reducers can be classified into three categories: general-purpose, special-purpose, and precision. Reducers are categorized into three main types: general-purpose reducers, specialized reducers, and precision reducers. Generally speaking, general-purpose reducers are widely applicable, specialized reducers are custom-designed for specific needs, while precision reducers focus on delivering high-precision motion control and positioning capabilities. General-purpose reducers are standard transmission devices primarily designed for medium and small-scale applications. Widely used in industrial gearboxes, conveyor systems, and related sectors, they offer limited control precision, meeting only the basic power transmission needs of most machinery. Leading manufacturers include SEW, Siemens, Guomao Co., Ltd., Ningbo Dongli, Jiangsu Tailong, and Zhongda Lide. Specialized reducers: Customized speed reduction devices developed according to specific industrial needs, typically in large or extra-large specifications, can be optimized for specific application scenarios or industry requirements to meet higher performance standards and special functional needs, such as wind power generation gearboxes, metallurgical gearboxes, etc. Representative companies include China High-Speed Transmission, Hangchi Forward, Weili Transmission, Zhongchi, Jinlei Co., Ltd., etc. Precision reducers, featuring low backlash, high accuracy, long service life, and exceptional reliability, are the preferred choice for precision-critical applications such as robotics and high-end machine tools. Leading manufacturers include HAMERNAK, Nabtesco, Lüde Harmonic, and Zhongda Lide. Figure 4: Reducers are classified into general-purpose, specialized, and precision types. level characteristic on behalf of company general reducer Primarily designed for small and medium-sized applications, these modular and serialized units are widely applicable across various industries. SEW, Siemens, Guomao Co., Ltd., Ningbo Dongli, Jiangsu Tailong, Zhongda Lide, and others special reducer Specifications are primarily large and extra-large, mostly non-standard and industry-specific products. China reports on high-speed transmission, Hangchi Forward, Weili Transmission, Heavy Teeth, Jinlei Shares precision speed reduction device With low return clearance, high precision, long service life, and reliable stability, it is widely used in high-end fields such as robotics and CNC machine tools. Hamernak, Nabotsk, Green Harmonics, Zhongda Lide, etc. Source: Guomao Co., Ltd. prospectus, Wanlian Securities Research Institute Depending on their structure and transmission methods, precision reducers can be classified into harmonic reducers, RV reducers, and precision planetary reducers. ① Harmonic reducer: Composed of a wave generator, flexible gear, and rigid gear. With advantages such as compact size, lightweight design, high transmission accuracy, smooth operation, and large transmission ratio, it is particularly suitable for industrial robots and humanoid robots in industries like 3C, semiconductors, and medical devices. It is mainly used in components like robotic arms, wrists, and hands. However, its drawbacks include low torque transmission, inefficient power transfer, and limited service life. ② RV Reducer: This two-stage mechanism combines involute planetary gear transmission with cycloidal pinion planetary transmission. Featuring high transmission efficiency, smooth operation, strong load-bearing capacity, excellent rigidity, and superior overload impact resistance, it is widely used in heavy-load components of industrial robots such as bases, arms, and shoulders. However, its drawbacks include complex structure, high manufacturing difficulty, and elevated costs. ③ Precision planetary gear reducer: compact in size, composed of planetary gears, sun gear and internal gear ring, with compact structure, high torque, high efficiency of single-stage transmission, light weight, long life and maintenance-free, etc. It is mostly used in the body rotation joints of robots with low precision requirements. Its limitation is the small range of single-stage transmission ratio. Figure 5: Comparison of Three Precision Reducers reducer category design feature merit shortcoming application area diagrammatic sketch harmonic reducer The main components are the wave generator, flexible cabin and rigid cabin. When the reducer operates, the wave generator undergoes controllable deformation, and the power is transmitted through the meshing of the flexible and rigid cabins. High transmission accuracy, small weight and volume, smooth operation, large transmission ratio The torque transfer is relatively small, the transmission efficiency is low, and the service life is limited Joints in robots with lighter loads, such as the forearm, wrist, and hand, are used in fields like aerospace, precision machining equipment, and medical devices.   RV decelerator It mainly includes two kinds of transmission devices, which are involute planetary gear transmission and cycloidal pinwheel planetary transmission. The transmission precision is high, the transmission efficiency is high, the transmission stability is high, the bearing capacity is strong, the rigidity and overload impact performance is good. Complex structure, difficult to manufacture, high cost, and limited service life The robot has heavy bases, large joints such as the arm and shoulder   precision planetary reducer The compact design mainly includes planetary gears, sun gears, and internal gear rings. Precision planetary reducers typically have a single-stage reduction ratio of 10 or less, with the number of reduction stages generally not exceeding three. Single-stage transmission with 97% efficiency, lightweight design, and a service life of up to 20,000 hours—maintenance-free. The single-stage transmission has a narrow range of transmission ratios. Precision transmission systems for mobile robots, new energy equipment, high-end machine tools, and intelligent transportation Source: Kefeng Intelligence IPO prospectus, Wanlian Securities Research Institute Figure 6: Comparison of Parameters of Three Precision Reducers Key indicators harmonic reducer RV decelerator precision planetary reducer transmission efficiency >70% >80% >95% transmission accuracy ≤60 ≤60 ≤180 transmission ratio 30-160 30-192.4 3-512 designed life (h) >8,000 >6,000 >20,000 torsional stiffness (N·m/arc min) 1.34-54.09 20-1,176 10-370 rated output torque (N·m) 6.6-921 101-6,135 40-1,200 noise (db) ≤60 ≤70 ≤65 temperature rise (℃) ≤40 ≤45 ≤30 Source: Kefeng Intelligence IPO prospectus, Wanlian Securities Research Institute
Precision reducers are the core components of robots, accounting for a significant portion of the cost structure in both industrial and humanoid robots. Their performance directly determines the overall performance of the robot, making quality and performance the primary considerations during selection. Reducers represent a substantial portion of a robot’s total cost. According to data from the China Business Industry Research Institute, they account for 35% of industrial robot costs, making them the highest-cost component. Data from Zhiyan Consulting shows they make up 16% of humanoid robot costs, second only to frameless torque motors, positioning them as a key component in humanoid robots. Despite the downward trend in reducer prices driven by technological advancements and intensified market competition, they remain a crucial part of robot costs. Global reducer manufacturers are continuously driving cost reductions through technological innovation and scaled production.   2.1 Harmonic Reducer: Robot is the core incremental market, Green Harmonic Achieve Breakthrough The harmonic reducer consists of three key components: a wave generator, a flexible wheel, and a rigid wheel. Through their coordinated operation, this device achieves high reduction ratios and torque output in a compact design. The wave generator drives the rigid wheel’s rotation via the flexible wheel’s elastic deformation, effectively reducing speed while increasing torque. This design makes it particularly suitable for precision control applications and space-constrained environments. China’s harmonic reducer market is experiencing rapid expansion. These precision-driven components are widely used in precision transmission systems, with applications now extending to robotics, high-end CNC machine tools, semiconductor manufacturing, and medical equipment. Data from the China Business Industry Research Institute shows the market size grew from 1.35 billion yuan in 2019 to 2.49 billion yuan in 2023, achieving a robust 16.54% compound annual growth rate (CAGR). The market is projected to reach 3.32 billion yuan by 2025, with a CAGR of 15.47% during the 2023-2025 period.   The global harmonic reducer market exhibits a “dominant leader” structure, with Lüde Harmonic achieving breakthroughs in domestic production. The competitive landscape remains highly concentrated, with Japanese manufacturer Harmonic Drive holding a leading position with over 80% global sales market share. In China’s 2023 harmonic reducer market, Harmonic Drive and Lüde Harmonic ranked in the first tier, capturing 38.7% and 14.5% of sales market share respectively. Companies like Lai Fu Harmonic, Tongchuan Technology, and Japan’s Shinboshi Technology formed the second tier, holding 9.2%,7.3%, and 6.7% market shares. Technologically, Harmonic Drive maintains industry leadership, while domestic manufacturers like Lüde Harmonic have achieved international advanced levels through technological breakthroughs and production process improvements in reduction ratios, rated torque, transmission efficiency, and precision. This progress has broken foreign manufacturers’ technological monopoly in high-end harmonic reducers, gradually replacing imported brands.   Chart 13: Basic Information of Major Domestic & Overseas Harmonic Reducer Manufacturers Company Name Registration Location Main Registration Location Main Product Categories Application Fields Harmonic Drive Systems Inc. (HDSI) Japan Harmonic reducers,planetary reducers,actuators,servo drives, etc. Industrial robot field (represented by multi-joint robots), medical equipment, optical measuring instruments, communication equipment, printing equipment, as well as deep-sea robots, aerospace development, etc. NIDEC (Japan) Japan Motors, fans, blowers, motor controllers, reducers, conveyors, optical equipment, sensors, electronic devices, equipment fixtures, production equipment, etc. Automotive, home appliances, consumer electronics, robots, logistics, medical & health care, public facilities (transportation, energy, ICT), commerce, entertainment, industry, etc. Green Harmonic Suzhou,Jiangsu (China) Harmonic reducers & metal components, motor-integrated products, hydraulic products High-end manufacturing fields such as industrial robots, service robots, CNC machine tools, medical devices, semiconductor production equipment, new energy equipment, etc. Laifubo Shaoxing,Zhejiang (China) Harmonic reducers Industrial robots, service robots, medical equipment, high-precision automation equipment, etc. 2.2 RV Reducer: Japanese Companies Lead the Market, Domestic Substitution Potential Huge The RV reducer employs a two-stage reduction mechanism, combining a first-stage involute planetary transmission with a second-stage cycloidal planetary transmission. This design delivers exceptional advantages including a wide transmission range and high efficiency. Featuring robust load-bearing capacity and superior rigidity, it serves as an ideal high-performance transmission system, particularly suited for industrial robots, CNC machine tools, and medical diagnostic equipment where transmission efficiency, load-bearing capacity, and precision are critical requirements. The RV reducer market continues to expand, with China’s market growth rate exceeding the global average. Both the global and China RV reducer markets are showing steady growth, primarily driven by the rapid development of industrial automation and smart manufacturing, especially the widespread application in the field of industrial robots. According to QY Research data, the global RV reducer market size grew from 3.43 billion yuan to 7.51 billion yuan from 2018 to 2023, with a CAGR of 16.97%. According to data from Huajing Industry Research Institute, the China RV reducer market size increased from 1.082 billion yuan to 4.295 billion yuan from 2014 to 2021, with a CAGR of 21.77%, outpacing the global average growth rate. It is projected that the market size will reach 6 billion yuan by 2025. Among these, the high growth rate of China’s RV reducer market from 2014 to 2017 was mainly attributed to the rapid increase in downstream industrial robot installations; the slowdown in industrial robot installation growth from 2018 to 2019 led to stagnation in the RV reducer market size growth; and the renewed acceleration in industrial robot installations from 2020 to 2021 drove a significant surge in RV reducer demand. Nabtesco maintains a dominant position in the RV reducer market, with domestic substitution efforts gaining significant momentum. In the global RV reducer sector, Japanese manufacturer Nabtesco has consistently held industry leadership. Domestically, Nabtesco dominated the market in 2020 with an absolute 54.80% market share, followed by Sumitomo Heavy Industries (6.60%) and Zhongda Lide (6.16%). From 2021 to 2023, the market landscape underwent notable changes as Huandong Technology demonstrated strong growth, increasing its market share from 5.25% in 2020 to 18.89% in 2023, securing its position as China’s second-largest player. Meanwhile, international manufacturers saw their market shares shrink, with Nabtesco’s share declining from 54.80% to 40.17%. As Huandong Technology progressively replaces Nabtesco’s imports, it has further solidified its leadership in China’s robotic RV reducer market.
  The electric drive system is developing towards the multi-objective direction of compact size, low weight, high efficiency and low noise, which provides more space, higher endurance and more comfortable riding environment for the vehicle.   ▶ Development Direction: Coaxial planetary gear technology aligns with the development objectives of electric drive systems and is emerging as the mainstream trend for future electric drive systems, particularly in high-torque electric drive products. To deliver high-performance experiences for users, planetary gears will gradually dominate the market. Both domestic OEMs and Tier1 manufacturers are actively investing in and developing this technology. Core components and processes of planetary gears, such as gear rings, planetary gear mechanisms, planetary carrier stamping, and welding, show significant growth potential.   To meet users’ demands for optimal handling and versatile power output across various scenarios, distributed electric drive systems (including central integrated distributed drive, wheel-side drive, and hub motors) along with multi-speed transmission systems are being deployed in specialized applications, significantly enhancing the user experience across diverse operating conditions and environments. Meanwhile, most small-torque electric drive systems continue to utilize parallel shaft transmission configurations, ensuring optimal cost-performance ratios for end-users.   ▶ Supply Chain and Cooperation Model: With the country’s emphasis on the new energy vehicle industry, compared to the traditional transmission industry, the initial technical threshold and industrialization investment threshold for electric drive systems are both lower, further promoting the continuous development of China’s new energy electric drive system industry. From the initial dominance of the supply chain, it has gradually evolved into a dual-track approach of supply chain plus OEM self-developed and self-manufactured systems. As market competition intensifies and the integration level of electric drive systems continues to improve, the future supply chain will be more closely integrated with OEMs,with clear division of labor, to ensure long-term market stability. Trends and objectives for high-efficiency transmission systems   With the continuous improvement of efficiency targets, technologies such as ultra-high-precision shaft teeth, low rolling resistance bearings, low oil agitation loss shaft arrangements, active lubricant dry oil pan systems, and ultra-low viscosity lubricants will be progressively adopted. Coupled with the widespread use of coaxial planetary gear reducers, the CLTC efficiency target for transmission systems is expected to exceed 98% by 2024.   Future efficiency gains will transcend isolated upgrades to components or sub-assemblies, focusing instead on system-level optimization and integrated multi-strategy applications. Efficiency metrics will become more granular, with automakers now prioritizing real-world performance metrics like 100km/h and 120km/h steady-state range—beyond the conventional CLTC (China Light-Duty Test Cycle) benchmark—to better align with users’ daily driving needs.                                                                             Figure 3 Efficiency levels of electric drive industry reducers in the past three                                                                                                ars The trend and objectives of lightweight design   From 2027 to 2030, planetary gear sets are expected to be widely adopted in high-power, high-torque electric drive systems, reducing weight by 30% to 40% compared to current standards. With advancements in new materials (e.g., magnesium-aluminum alloy housings) and manufacturing processes (such as welding differential bolts instead of screws, and stamping die-cast differential housings), the drive system weight is projected to decrease by an additional 5%.   time 2027-2030 torque output <3000Nm 3000-4000Nm 4000-5000Nm Weight (dry weight) <15kg 15-18kg 18-25kg Table 5 Relationship between Transmission System Weight and Torque Output Trend and goal of low-noise transmission system   To meet users’ increasingly stringent comfort requirements, the transmission system has progressively enhanced its excitation optimization and path simulation capabilities, with NVH targets varying across different vehicle classes.   Alongside advancements in simulation techniques, NVH research has shifted focus toward user-critical driving conditions. The initial development emphasis has transitioned from 100% torque NVH performance to real-world scenarios like light throttle and steady-state driving.   NVH issues are inherently systemic challenges. As user demands grow, solutions for electric drive NVH problems are evolving from isolated fixes to comprehensive system-level approaches, balancing cost-effectiveness. This includes strategies like noise masking for gear stage background noise, localized acoustic packaging, and frequency-specific optimization of acoustic materials. With continuous advancements in transmission reducer component manufacturing, noise levels in drive systems are progressively decreasing. The noise standard of the transmission system is 1.5 m average noise, and the target trend prediction is shown in the table below. Noise of Half-Load Bench at Full Torque Condition time 2024-2027 2027-2030 Low-end model 70dB(A) 68dB(A) Mid-to-high-end car models 65dB(A) 60dB(A) Table 6: Average Noise Trends Trends and targets of spatial dimensions   In order to meet the demand of larger interior space and platform layout of powertrain, the powertrain is required to be compact and regular in shape, and the transmission is gradually developing from parallel shaft to planetary coaxial arrangement.   The planetary arrangement offers superior spatial dimensions, particularly in the X-axis direction compared to parallel-axis configurations. With equivalent output capacity, the X-axis configuration can reduce the space requirement by approximately 40%.  
High-speed requirements for bearings   ▶ present situation   In 2024, the industry’s bearing requirements generally specify rotational speeds between 16,000 and 23,000 rpm, with some OEMs developing ultra-high-speed motors during pre-research stages that require 30,000 rpm. From the perspective of bearing usage across OEMs,imported brands dominate high-speed bearing applications, while domestic brands are rapidly catching up in both technological development and installation verification.   ▶ throw down the gauntlet   Ultra-high-speed bearings with low friction and temperature rise, using special heat-treated steel balls or low-cost ceramic balls.   High-speed lightweight cage design to suppress the “umbrella effect” in pocket holes, along with the R&D and design simulation of specialized cage materials.   High-speed bearings require higher internal precision, such as roundness, ripple, roughness, profile, runout, etc.   time line 2015-2017 2018-2019 2020-2024 2025 2030 bearing dmN 800,000 1 million 1.5 million 180,000 2 million Example of bearing rotational speed( unit rpm) 6208→13000 6208→16000 6208→25000 6208→30000 6208→33000 Table 3 Timeline for High-Speed Mass Production of Electrically Driven Bearings (dmN: a rotational speed parameter measured in mm·r/min)   The need for high efficiency in bearings   ▶ present situation   In 2024, the industry’s bearing requirements generally specify rotational speeds between 16,000 and 23,000 rpm, with some OEMs developing ultra-high-speed motors during pre-research stages that require 30,000 rpm. From the perspective of bearing usage across OEMs,imported brands dominate high-speed bearing applications, while domestic brands are rapidly catching up in both technological development and installation verification.   ▶ throw down the gauntlet Cone roller bearings deliver lower friction loss through optimized flange convexity design, ultra-precision manufacturing, and nylon cage.   The bearing features miniaturization and custom design, utilizing high-purity steel with specialized heat treatment and coating reinforcement technologies.   Select the optimal bearing efficiency combination based on actual operating conditions, such as DGBB+CRB, TRB, or TBB.   Development demand of insulating bearing   ▶ present situation   With the industry’s widespread adoption of 800V high-voltage platforms for electric drives, power modules in inverters have transitioned from IGBT to SiC, resulting in faster switching speeds. The high dv/dt (voltage-to-current rate) has dramatically increased the risk of electrical corrosion in bearings, demanding enhanced insulation protection. While hybrid ceramic ball bearings currently offer the most ideal insulation, their exorbitant manufacturing costs remain a major industry pain point. Meanwhile, low-cost insulated bushing bearings are being actively developed, with leading manufacturers including SKF, Ensk, Fuji Electric, and Renben.   ▶ throw down the gauntlet   Development of low-cost ceramic ball bearings and localization of ceramic powder supply chain. The insulation bushing bearing is developed with the target insulation impedance of 800Ω@1~5MHz.   time line 2018-2020 2021-2023 2024 2025 and beyond voltage platform 800,000 1 million 1.5 million 180,000 motor bearings ball bearing hybrid ceramic ball bearing The insulation layer has an impedance of 400Ω (1-5MHz). The insulation layer has an impedance of 800Ω (1-5MHz).  
1.The high-speed rotation requirement of gears   ▶ present situation   High-speed gears have been widely adopted in new energy vehicles, primarily for their ability to transmit power stably at high speeds. Their application involves multiple aspects including material selection, design, manufacturing, and lubrication. The gear speed in new energy vehicles has evolved from 12,000 rpm to over 20,000 rpm, and is now trending toward 30,000 rpm and beyond.   The development of high-speed gears has raised higher requirements for gear design, material selection, and manufacturing, especially in terms of controlling gear lifespan, lubrication, heat dissipation, and NVH (Noise, Vibration, and Harshness).   ▶ throw down the gauntlet   Reliability: High-speed operation accelerates tooth surface contact fatigue, fretting fatigue, and stress concentration, leading to premature gear failure. Currently, materials such as 20MnCr5 are selected for gears, which offer higher strength, better toughness, and superior heat treatment and processability.   Lubrication & Heat Dissipation: At high rotational speeds, gears experience higher linear velocities, resulting in increased heat generation during meshing and hindering oil film formation, thereby elevating the risk of gear failure. This also poses greater challenges in gear design, requiring stricter specifications for anti-caking properties, slip rates, and linear velocities. A well-designed tooth profile is particularly critical, while the selection of lubricants and proactive lubrication of gears are equally vital.   Dynamic balancing: As the rotational speed increases, the impact of dynamic balancing factors on the NVH of electric drives gradually intensifies, and the dynamic balancing requirements for shaft-to-tooth components become more stringent. Currently, all shaft-to-tooth components now include dynamic balancing inspection requirements.   Gear NVH: The expanded torque, speed, and rotational frequency ranges at high gear speeds significantly increase NVH control complexity. This raises challenges in managing gear excitation and vehicle transmission paths, requiring coordinated design of both electric drive sound packages and vehicle sound packages, along with vibration and noise isolation for structural pathways. At higher speeds, the torque and speed ranges broaden considerably, while the corresponding rotational frequency range nearly doubles, substantially complicating NVH control. As a result, acoustic packages have become a standard feature in electric drive systems.   Gear manufacturing: The precision requirements for gears are becoming increasingly stringent. Currently, the industry is transitioning from the national standard grades 5-6 to grades 5 and above, making the manufacturing process more challenging.   The requirement for high gear ratios   ▶ present situation With the development of motor performance, the peak speed of motor is gradually increased, the limit of the maximum speed is gradually improved, and the limit of the gear ratio is gradually released.   Considering the vehicle acceleration and electric drive economy, increasing the speed ratio can quickly improve the wheel-end torque of the vehicle, and reduce the volume of the motor to achieve the economic index.   As the peak speed of the motor approaches 20,000+, the gear ratio is also showing a gradual increasing trend. For example, Huichuan has mass production projects with a gear ratio> 12, and Huawei has mass production projects with a gear ratio> 13. Designs with gear ratios above 13 are gradually becoming the norm.   ▶ throw down the gauntlet   The application of high-speed ratio gears has increased the difficulty in both gear performance and manufacturing.   NVH performance: High-speed ratio gears typically generate more noise and vibration, and their design, material selection, and manufacturing pose greater technical challenges.   In terms of reliability, high speed ratio gear needs to bear larger torque and speed, and the linear speed of gear meshing is also larger, which puts forward more strict requirements on the reliability index of bending and contact.   Material: With the increase of the speed and torque, the performance of the gear material is also required to be higher, which needs to consider the strength and wear resistance.   In the manufacturing, the high speed ratio gear is more sensitive to the gear meshing excitation, which makes the gear require higher precision and consistency.   High NVH requirements for gears   ▶ present situation   Unlike internal combustion engines, new energy vehicles are more sensitive to gear NVH performance, requiring higher NVH standards for gear systems, particularly in terms of transmission smoothness and noise reduction.   Gears are a key power source in electric drive systems. Given their lengthy manufacturing processes and high control complexity, NVH (Noise, Vibration, and Harshness) issues in gears pose a significant challenge for the industry. Industry statistics indicate that 70-80% of aftermarket NVH problems stem from bearings and gears, with gear-related issues accounting for 50-60%. Gear NVH is a major contributor to overall vehicle NVH performance. As high-speed and high-ratio gears become increasingly prevalent, addressing NVH challenges in gears has emerged as the industry’s top priority.   ▶ throw down the gauntlet   Gear NVH involves multiple aspects such as gears, electric drive, chassis, and the whole vehicle. It is a systematic control index with a wide range and great difficulty in control. At the beginning of the design, risks should be identified and controlled in advance from the dimensions of gear design & manufacturing and path. In gear design, NVH of shaft gear involves many fields, such as gear design, machining, assembly, shell support stiffness, bearing stiffness, shaft gear mode, shell mode, electric drive mode, motor mode, transmission path, acoustic radiation, etc.                                                                                    Figure 2: Axis-tooth squeal control points Source: Compiled from public data     In gear manufacturing, precision requirements are escalating. While the industry currently adheres to national standard grades 5-6, rising NVH (Noise, Vibration, and Harshness) demands now require specific gear precision metrics to exceed grade 4, posing significant challenges for both accuracy and consistency assurance. Given the lengthy processing cycle and multiple critical stages, stringent controls are essential across all phases—from material selection and blank production to heat treatment, finishing, and gear grinding. Each process requires precise parameter optimization, further complicating manufacturing. Comprehensive monitoring is imperative for NVH-critical parameters including tooth profile orientation, cumulative runout, surface roughness, Fourier analysis, tooth surface waviness, three-dimensional profile, dynamic balance, and grinding patterns.  
To meet the development of new energy vehicles, the performance requirements for gears are becoming increasingly stringent.   ▶ Lightweighting: With the development of new energy vehicles towards lightweight, gears and transmission systems are also optimized towards smaller volume and lighter mass; structural innovation, small center distance gears and planetary gear reducer configurations have become the industry development trend.   ▶ High-efficiency transmission: To improve the range and overall energy efficiency of new energy vehicles, high-efficiency gears and transmission systems are continuously optimized in terms of conversion efficiency, transmission ratio, and torque density. High-speed and high-ratio gears are becoming the trend.   ▶ High NVH performance requirements: Noise control is critical to the ride comfort of new energy vehicles. High NVH performance gears have become a key control indicator in the development of new energy vehicle gears. The design dimension is controlled in advance, involving multi-dimensional design control such as gear structure, machining, assembly, housing support stiffness, bearing stiffness, shaft-to-tooth modal, housing modal, electric drive modal, motor modal, order avoidance, transmission path, and acoustic radiation.   ▶ Materials and Manufacturing: High-performance materials including high-strength steels, advanced alloys, non-metallics, and composites are being progressively adopted. The precision requirements for gears are increasingly stringent, with national standards mandating Grade 5 or higher precision, and some parameters reaching Grade 4 or higher. A comprehensive control system integrates human, machine, material, method, and environmental factors in gear manufacturing. Strict coordination across all machining processes ensures full sequence precision. The implementation of new technologies such as honing, ultra-finishing grinding, and precision gear manufacturing enhances accuracy while maintaining consistency.   ▶ Because of the tooth tolerance, gear machining error, assembly error, etc., the gear has other order besides the characteristic order, so the control of gear precision is very important.  
(1) The successive introduction of national strategies and industrial policies has driven the rapid development of domestic precision reducers. In recent years, industrial policies have provided strong support for technological breakthroughs and accelerated development in industrial robots and precision reducers. The government has designated robotics and high-end CNC machine tools as one of the ten key priority areas requiring vigorous promotion, with specific requirements to achieve engineering breakthroughs and industrialization of intelligent core components like reducers. The 14th Five-Year Plan and its supporting plans outline strategies to deepen the manufacturing power strategy, optimize and upgrade the manufacturing sector, cultivate advanced manufacturing clusters, and drive innovation in industries such as robotics. The plan emphasizes the development of intelligent manufacturing equipment, addressing weaknesses in perception, control, decision-making, and execution through industry-academia-research collaboration. Key objectives include overcoming critical bottlenecks in foundational components and devices, as well as developing advanced controllers, high-precision servo drive systems, and high-performance, high-reliability reducers.   For instance, the “14th Five-Year Plan for Robot Industry Development” outlines that in the face of new circumstances and requirements, the next five years and beyond will be a strategic opportunity period for China’s robotics industry to achieve self-reliance, innovation, and leapfrog development. It emphasizes seizing opportunities, confronting challenges, and accelerating solutions to issues such as insufficient technological accumulation, weak industrial foundations, and lack of high-end supply, thereby propelling the robotics industry toward mid-to-high-end development. The plan advocates for high-end and intelligent development, targeting industrial transformation and consumption upgrades. Key priorities include breaking through core technologies, consolidating industrial foundations, enhancing effective supply, expanding market applications, improving supply chain stability and competitiveness, continuously refining the industrial ecosystem, and driving high-quality growth in the robotics sector. The development goals set forth in the plan are: By 2025, China aims to become a global hub for robotics innovation, a cluster for high-end manufacturing, and a new frontier for integrated applications. Breakthroughs will be achieved in core robotics technologies and premium products, with overall performance metrics reaching international advanced levels and key components matching the reliability of global counterparts. The robotics industry’s annual revenue growth rate will exceed 20%, fostering a group of internationally competitive leading enterprises and numerous innovative, high-growth specialized “little giant” enterprises. Three to five globally influential industrial clusters will be established. Manufacturing robot density will double. By 2035, China’s robotics industry will achieve world-leading comprehensive strength, with robots becoming integral components of economic development, people’s livelihoods, and social governance. The plan outlines key objectives: strengthening industrial foundations, enhancing the functionality, performance, and reliability of critical robot components, and developing advanced manufacturing technologies for high-performance reducers, including RV reducers and harmonic reducers. These efforts will improve precision retention (longer lifespan), reliability, and noise reduction, paving the way for mass production.   The successive rollout of national and industrial policies has provided strong support for the rapid development of domestic precision reducers.   (2)Benefiting from the growing demand for industrial robots, the market for industrial robot reducers, including RV reducers, is expanding rapidly. According to GGII data, China’s total demand for industrial robot reducers increased from 931,100 units to 1,366,000 units between 2021 and 2024, with a compound annual growth rate (CAGR) of 13.63%. The incremental demand rose from 824,100 units to 1,154,500 units, achieving a CAGR of 11.89%. As digitalization accelerates, the automation of human labor will gain significant benefits. As a core component driving industrial automation, supporting industrial upgrading and smart manufacturing, reducers are poised for long-term growth.   (3) The Rise of Domestic Brands in Industrial Robots and RV Reducers In recent years, driven by surging downstream demand, expanding application fields, and bolstered by industrial policies and collaborative efforts among government, industry, academia, research institutions, and end-users, China’s industrial robotics sector has prioritized breakthroughs in core technologies. Domestic manufacturers have consistently overcome technical hurdles in critical components like gearboxes, steadily enhancing their technological prowess and competitive edge. The performance gap between Chinese products and global leaders continues to narrow. In China’s industrial robot market, domestic brands are rapidly rising, and the import substitution process is accelerating. With breakthroughs in key technologies, improvements in the performance of domestic robots, and the optimization of the supply chain system, domestic industrial robot manufacturers have seized market opportunities to achieve rapid growth in recent years. Meanwhile, China’s industrial robot reducer industry, including RV reducers, has entered a phase of rapid growth. With domestic RV reducer manufacturers enhancing their technical capabilities and product performance, gradually expanding production capacity, and gaining increasingly prominent pricing and cost-performance advantages, leading domestic industrial robot manufacturers are rapidly increasing the localization rate of RV reducers in procurement. This trend is driven by considerations such as supply chain security and stability, procurement costs, and procurement cycles. The domestic industrial robot reducer market demonstrates significant growth potential and vast market space.  
1.Relevance to the upstream industry The primary raw materials for RV reducers include externally sourced components such as bearings, blanks, steel, and cutting tools. The upstream supply chains for bearings, blanks, and steel are predominantly sourced from the steel industry, where market supply remains abundant and competition is intense. Both product quality and supply conditions meet industry demands. In recent years, steel prices have remained relatively stable due to supply-side reforms and overcapacity reduction efforts in the steel sector. However, fluctuations in steel prices—driven by factors like international commodity market trends—may affect the raw material costs and profit margins of reducer products. From a long-term perspective, China’s ample steel supply is unlikely to adversely impact the RV reducer industry.   Relevance to Downstream Industries As an indispensable component in high-precision equipment, RV reducers are extensively utilized in advanced manufacturing sectors like robotics and industrial automation. Their product quality, reliability, and service life directly determine the performance of host systems, while the industry’s scale and development trends are driven by downstream market demands. In recent years, with the introduction of supportive policies such as the “14th Five-Year Plan for the General Machinery Parts Industry” and the “14th Five-Year Plan for Robot Industry Development,” high-end equipment manufacturing—represented by industrial robots and high-end CNC machine tools—has become a key focus for national development to achieve breakthroughs. Meanwhile, the accelerated industrial restructuring and upgrading have spurred continuous advancements in industrial automation and intelligentization. Benefiting from downstream industry momentum, the RV reducer sector is poised to enter a new phase of rapid growth.   Industry competition landscape In the context of Industry 4.0, developed countries represented by Japan have prioritized advancing the robotics industry. They have achieved complete self-sufficiency in core components like RV reducers and secured significant market share through technological leadership. The RV reducer industry is characterized by high technical complexity, substantial investment thresholds, and stringent industry barriers. It requires substantial capital and talent investment in R&D design, quality control, and product testing. Manufacturing processes demand strict requirements for materials, production equipment, and process precision, making large-scale production challenging. Globally, few manufacturers can reliably supply mass-produced RV reducers with reliable performance. Leveraging their long history, strong capital base, and extensive technical expertise, Japanese companies dominate the global industrial robot reducer market. Notable representatives include Nabtesco, which has established a prominent position through cutting-edge R&D capabilities, large-scale production capacity, consistent product quality, and long-standing collaborations with international industry leaders like FANUC and KUKA. Due to the late start of China’s RV reducer industry, the overall technical level of enterprises in the industry still lags behind that of internationally leading companies. In the domestic RV reducer market, as domestic manufacturers continuously overcome technical challenges, their technical capabilities and competitiveness have steadily improved, narrowing the gap between product performance and the leading levels abroad. According to the “China Robot Industry Development Report (2022)” by the China Electronics Society, the core competitiveness of key components in China’s industrial robots continues to rise. Taking reducers as an example, a group of outstanding enterprises such as Lüde Harmonic (mainly focusing on harmonic reducers) and Huandong Technology (mainly focusing on RV reducers) have become pioneers in leading the development of the domestic reducer market, thanks to their sustained R&D investment, high precision manufacturing capabilities, strict quality control, and continuously improving product systems.   Major companies in the industry Globally, Nabtesco is the market leader in the RV reducer industry. In China’s RV reducer market, besides Nabtesco, Huandong Technology has gained a leading position with a market share approaching 20%, while other companies are relatively smaller. The basic situation is as follows: corporate name Headquarters location Key business operations and market position Nabtesco Japan As the creator of RV reducers and a leading enterprise in the field of motion control, it is the world’s largest manufacturer of robotic RV reducers. According to GGII statistics, its market share in China’s robotic RV reducers was 50.87%,40.17%, and 33.79% in 2022,2023, and 2024 respectively. Circulation Technology China The main product, RV reducer, has basically covered leading domestic robot customers, with strong production and processing capabilities, enjoying high brand awareness in the industry. It has become a professional manufacturer of RV reducers for industrial robots with leading domestic production and sales volume. According to GGII statistics, its market share in China’s robot RV reducer market was 13.65%,18.89%, and 24.98% in 2022,2023, and 2024 respectively. Source: publicly available data, GGII In recent years, Shuanghuan Technology has achieved rapid market expansion and established dominance in China’s robotics sector through its RV reducers. In 2020, Nabtesco dominated the domestic RV reducer market with 54.80% share, while Sumitomo Heavy Industries held 6.60% and Shuanghuan Technology only 5.25%. From 2021 to 2024, Shuanghuan Technology’s market share rose steadily to 10.11%,13.65%,18.89%, and 24.98%, consistently ranking second only to Nabtesco. During the same period, Nabtesco’s market share declined to 51.77%,50.87%,40.17%, and 33.79%, while Sumitomo Heavy Industries saw its share drop to 5.06%,4.70%,3.91%, and 3.58%. This sustained decline in international competitors’ market share highlights Shuanghuan Technology’s role as a leading domestic alternative to Nabtesco’s products. By progressively replacing imported Nabtesco components, Shuanghuan Technology has solidified its position as the industry leader in China’s robotics RV reducer market. [Disclaimer]This excerpt is from Shuanghuan Technology’s prospectus. All rights reserved by the original author. For knowledge sharing and communication purposes only, not for commercial use. We maintain neutrality regarding all viewpoints expressed herein. Should you find any discrepancies between the cited sources and facts, or if there are copyright-related issues, please notify us for prompt revision or removal.