Cobot/robotic transmissions: Schaeffler AG on the way to high market shares

In the spring of last year, groups that want to profit from the growth of robotics were mentioned here. Among them was the major German automotive supplier, Schaeffler AG ("Continental"). Schaeffler would offer transmissions for cobots starting in 2022, it was said. Now the group has acquired Melior Motion GmbH , an established supplier of gearboxes for industrial robotics. According to the last published balance sheet, Melior Motion made a loss in 2019. However, the reason for this was conversions in production and the acquisition of new customers, whose sales would only come subsequently. For 2020, the company was optimistic despite the discontinuation of older products.

15% market share for robotic transmissions as early as 2025?

Before the takeover press release, some information from today's Handelsblatt article on the takeover. The existing robotics activities and Melior Motion are expected to generate revenues of €50 million this year. Melior Motion had sales of €23 million in 2021 and should continue to grow in 2022. I am speculating and assuming that the Melior Motion growth is limited to €30 million this year due to limited capacities. This would mean that Schaeffler would generate €20 million with its core product range primarily for cobots. Here references would be interesting. Where are Schaffler motors used? Either a larger established cobot manufacturer changes its supplier or a new one with big ambitions relies on Schaeffler.

In 2025, the robotics sector is expected to generate revenues of €150 million. This would apparently result in a market share for robotic gear units of 15%. Own users such as igus, which can be expected to achieve high sales figures, are not likely to be included in the forecast, according to my assumptions. The market leader Universal Robots is likely to continue sourcing from Kollmorgen.

Synergy effects

Dr. Stephan Spindler (photo), member of the Board of Management of Industrie, is quoted in the Handelsblatt newspaper as saying, "This is the ideal complement. Apparently there are great synergy effects. Be it in sales (complete product range), technology (PSC) as well as, of course, purchasing and, with the planned growth, also in manufacturing. Spindler is open to further acquisitions in robotics. So it remains exciting.

Press Release

• Acquisition of the manufacturer of innovative precision gear units for industrial robots
• Strategic acquisition in a growth area in the Industrial Automation business unit
• Patented planetary gears enable high-precision positioning and repeatability of robots with particularly long service life
• Growth potential in addition to robotics also in machine tools, medical technology, logistics and packaging machines

Automotive and industrial supplier Schaeffler has signed an agreement to acquire all shares in Melior Motion GmbH. By acquiring the supplier of precision gearboxes for robotics and other automation applications, the Schaeffler Group is expanding its portfolio in the field of robotics in its Industrial division. As automation is advancing at a rapid pace, both for simple repetitive tasks and for complex assembly and manufacturing processes, the Industrial division is consistently expanding its position as a supplier of components and systems for robots. In the first step, a shaft gear unit with electric motor and sensors for use in collaborative robots (cobots) was brought to production maturity. In the second step, the portfolio will now be expanded to include more powerful gear units for higher payloads in industrial applications.

After several years of development, Melior Motion GmbH has brought an innovative planetary gearbox for industrial robots to market maturity, which is characterized by high precision, excellent repeatability, extremely low noise and particular robustness. A modular platform concept was developed on the basis of this technology. The first gear units of this design have been on the market since 2017 and are proving their worth with rapidly increasing demand.

The company, which achieved sales of around 23 million euros in 2021, employs more than 100 people and is based in Hamelin. A further production site in China is being planned. Current main sales markets of Melior Motion GmbH are Europe and China. The company was launched in 2017, traces its roots back to Stephan-Werke, founded in 1908, and was acquired by Premium Ltd. in 2011.

The parties have agreed not to disclose the financial details of the transaction, which is scheduled to be completed by the beginning of February 2022. The closing is subject to the fulfillment of customary closing conditions.

Strategic acquisition in a growth area in the Industrial Automation business unit

Dr. Stefan Spindler, Member of the Schaeffler Board of Managing Directors for Industrial, says: "With Melior Motion GmbH, we are acquiring a highly innovative company in the field of robotics that is on a strong growth path. With this acquisition, we are supplementing our still young portfolio for actuators in robots and significantly expanding our position as an innovative supplier in this important business field. We will also use the special features of this portfolio as users of robots in our 75 Schaeffler production plants to increase effectiveness."

Melior Motion GmbH and its predecessor companies have been developing precision gears for robot manufacturers and industrial automation applications for more than 30 years. After many years of cooperation with Kuka, the new innovative precision gearbox was also qualified for two industrial robots and is now used in two axes of the KR Cybertech and six axes of the KR Iontec. Due to the success of these products on the market, and in particular the properties of the new drive concept, Melior Motion GmbH will significantly expand its production capacity in 2022.

Ralf Moseberg, Head of Industrial Automation at Schaeffler Industrial, says: "The developments and products of the highly qualified team at Melior Motion GmbH ideally expand the Schaeffler Group's product portfolio. The significantly reduced backlash compared to competitor products gives the ultra-precise planetary gearboxes special properties. The high torque density, long service life and outstanding energy efficiency are highly interesting for our large customer base in the robotics sector. The products of both companies are complementary and are in demand from the same customer group. Also by using comparable manufacturing technologies, we expect to be able to realize synergies in the areas of purchasing and production."

Chris Morrell, Managing Director of Melior Motion GmbH, says: "We are delighted to have a new owner and strategic partner for the future in the Schaeffler Group. Its global footprint, sales structure, manufacturing expertise and, in particular, ability to scale the business will enable us to embark on a further accelerated growth phase with regard to industrial robots and the machine tool market. In addition to Germany, we also intend to significantly ramp up local production capacity in China in particular. This can now be done much faster within Schaeffler's existing infrastructure."

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The author of this blog is significantly involved in the AI/robotics project Opdra. He advises robotics companies and investors on market analysis and funding/subsidies. More about him can be found here.