This Commercial Due Diligence (CDD) project focused on assessing the global growth prospects of the grinding ball (ball bearing components) market, evaluating the target company’s competitive advantages, and identifying strategies for international expansion. Core activities included analyzing market growth factors and risks, benchmarking against key competitors, and assessing alignment with downstream markets. The resulting recommendations position the target company to differentiate itself, capitalize on growth opportunities, and achieve long-term success in the global grinding ball market.

1. Global Market Analysis

Grinding balls are critical components of bearings used across a range of industries, including automotive, power generation, and aerospace. The global market was valued at approximately KRW 2.3 trillion in 2022 and is projected to grow at an 8% CAGR through 2030.

• Downstream Market Drivers: Despite a potential decline in bearing usage from internal combustion engine (ICE) vehicles as electric vehicle (EV) adoption rises, ongoing industrial automation and emerging market industrialization will sustain grinding ball demand. While EV adoption reduces ICE-related parts, it simultaneously increases bearing requirements for motors and battery cooling systems.
• Material Outlook: Steel balls are expected to maintain their dominant market share, with near-term substitution by ceramic or plastic materials remaining limited.

2. Competitive Strengths

The target company operates production facilities in Korea and several Asian countries. Compared with key competitors such as Tsubaki, AKS, and JGBR, the target company demonstrated notable strengths in pricing and productivity.

• Cost Competitiveness: The company maintains a pricing edge over competitors, supported by the low-cost production structure of its Vietnam plant. Ongoing productivity improvements and automation initiatives promise further competitive gains.
• Quality and Product Lineup: Product quality aligns with global standards (G5–G10), matching that of leading competitors. Efforts to broaden the product range—particularly large grinding balls and ceramic options—position the firm to capture emerging demand in sectors like wind turbines and renewable energy.
• Inventory and Delivery Management: The company’s robust inventory system and agile response, with delivery capabilities of 24–48 hours from order, enable it to adapt to fluctuating customer demand patterns.

3. Global Expansion Strategies

• Targeting Emerging Markets: Capitalize on industrialization trends and the relocation of global production bases in emerging APAC markets. In cost-sensitive regions, the Vietnam plant’s pricing advantage offers a powerful foothold.
• High-Value Product Development: Accelerate development of ceramic and large-diameter grinding balls to strengthen the company’s position in higher-value segments. This addresses the evolving needs of EV and renewable energy industries.
• Customer Diversification and Partnerships: Reduce dependency on a limited customer base by cultivating new client relationships and establishing strategic partnerships. This approach ensures more stable revenue streams and broader market coverage.

Expected Outcomes and Impact

By leveraging its cost and quality advantages, the target company is well-positioned to enhance its competitiveness and secure sustainable growth in the global grinding ball market. Emphasizing emerging markets and innovative product lines sets the stage for long-term success. Through strategic collaborations with global bearing manufacturers, the company can further solidify its market position and drive ongoing expansion.