SBV Tech "Localization of Reducers for Robots... Expansion to Electric Vehicles, Semiconductors, and Medical Fields" [Biz Leader]

Ryu Jaewan, CEO of SBV Tech. / Photo by Jang Hyowon

[Asia Economy Reporter Jang Hyowon] “We have successfully localized the first domestically developed robot reducer using our own technology. Moving forward, we plan to expand the market by supplying reducers not only for industrial robots but also for logistics robots, medical robots, and other service robots across various industries.”

Ryu Jaewan, CEO of SBB Tech, explained the company’s vision after its KOSDAQ listing in an interview with .

SBB Tech is a company specialized in bearings and reducers; the "BB" in SBB stands for Ball & Bearing. In its early days, the company started with manufacturing balls used in ballpoint pens. Utilizing these balls, they produced bearings and succeeded in localizing the ‘ultra-thin bearing’ used in vacuum robots for semiconductors by supplying it to domestic semiconductor companies.

Building on the experience of localizing ultra-thin bearings, SBB Tech ventured into developing precision control ‘robot reducers’ in 2004. At that time, the robot reducer market was monopolized by a Japanese company called Harmonic Drive, whose name had become synonymous with robot reducers. SBB Tech believed that since ultra-thin bearings were used in robot reducers, they could easily manufacture them.

Ultra-thin bearing by SBV Tech.
Photo by Jang Hyowon

CEO Ryu said, “Once we started development, we realized that robot reducers were not something that could be quickly made within a year; it was a very challenging item. It took about five years to successfully develop the first domestic product, and by around 2013, we reached a level capable of replacing Japanese products.”

Product development was not the end. It was necessary to demonstrate reliability verification to companies that had been using Japanese products, as a failure in robot reducers could cause losses worth tens or hundreds of billions of won. Therefore, SBB Tech focused on enhancing product reliability, and significant sales began only in 2016. Currently, sales of robot reducers have more than doubled compared to the previous year.

SBB Tech’s strength lies in its ability to directly design and manufacture the Wave Generator Bearing and Cross Roller Bearing used in robot reducers. Additionally, the company possesses proprietary tooth profile design and processing technologies, which are core to reducers, differentiating it from competitors who merely replicate products.

CEO Ryu explained, “We design robot reducers using our proprietary tooth profile design technology called ‘Alpha Tooth Profile.’ Globally, companies with such unique technology are limited to Japan’s Harmonic Drive and China’s Lead Driver, and domestically, SBB Tech is the only one.”

Precision control robot reducer 'RoboDrive' by SBV Tech. /Photo by Jang Hyowon

The largest sales sector for robot reducers currently is defense contractors, accounting for about 60%. Recently, the introduction of RCWS (Remote Controlled Weapon Systems) in domestic weapons has increased demand for reducers. Especially, SBB Tech’s proprietary tooth profile technology allows reducers to be customized for weapon systems, enhancing their applicability. Moreover, defense contractors prefer domestic technology due to security concerns, which gives SBB Tech a competitive edge.

He stated, “We plan to expand sales not only to defense contractors but also to supply robot reducers to previously untapped industrial markets. For example, recently in dentistry, when manufacturing implants, 3D scanning is followed by immediate production using mini CNC machines, which require reducers. We are supplying reducers to implant manufacturers and others.”

SBB Tech is also developing drive modules using reducers by attaching motors and controllers to create robot joints. Recently, inquiries have come from automobile manufacturers who need products combining motors and reducers to rotate seats. Additionally, companies like Audi apply technology that attaches motors and reducers to steering wheels to assist steering. As the electric vehicle and autonomous vehicle industries grow, the utilization of reducers is expected to increase.

He projected, “The market size for robot reducers is expected to be about 1.4 trillion won in 2024. This figure is based on the current industries we have entered, and as the range of applicable industries expands, the market size will grow exponentially.” He added, “SBB Tech has made significant investments to secure a leading position in this growing market, and from next year, we expect to see substantial sales growth and elimination of deficits.”