Product innovation to contribute to sustained demand for pneumatic equipment

Product innovation to contribute to sustained demand for pneumatic equipment

Keywords Market,Pneumatics

Since the recovery from recessionary forces affecting the majority of Western Europe at the beginning of this decade, the pneumatics market has been characterised by positive revenue growth rates, currently amassing revenues worth US$3.21 billion, reports a new study by Frost and Sullivan, the international marketing consulting company.

Sustained demand in the vehicle manufacturing, food and packaging, and chemical industries contributed to market growth. Product innovation, especially in the areas of miniaturisation and electronic interfacing, and the need to replace obsolete equipment can also be expected to sustain revenue growth. In 1999, when the current investment cycle should reach its peak, revenues are forecast to grow by 7.1 per cent to$3.44 billion, with revenues further rising to a projected total of US$4.60 billion by the year 2004.

The largest segment of the market is pneumatic valves, which accounted for 32.5 per cent of total revenues in 1997. This segment is forecast to maintain its leading position. Pneumatic cylinders and FRLs, which respectively accounted for 27.7 per cent and 14.1 per cent of total revenues in 1997, are the two faster growing segments, with a forecast annual growth rate of 6.5 per cent and 6.4 per cent respectively.

Mik Sabiers, industry manager at Frost and Sullivan, underlines the importance of the trends currently characterising the European pneumatics industry, which include electronic integration, miniaturisation, increasing standardisation, stricter quality standards, improved customer service and more competitive prices.

Mr Sabiers comments:"Despite the relatively established nature of pneumatic technology, there is still scope for product innovation which should benefit market growth during the forecast period".

Pneumatic equipment is anticipated to become increasingly standardised. The need to conform to stringent quality standards will favour more standardised equipment. The standardisation process should benefit market growth but, at the same time, is expected to result in fiercer competition.

The market is anticipated to be characterised by a more extensive use of integrated electronic and pneumatic systems. Electronic interfacing offers a greater degree of flexibility. Integrated systems also provide more efficient, reliable and cost-effective solutions to customer requirements.

Greater demand for smaller and easier to install valves is anticipated to continue. This trend is also expected to be reflected in the cylinders market, where standardisation of pneumatic designs is continuing. The use of vacuum equipment is also increasing,and there are a growing number of cylinders which incorporate a vacuum passageway in the piston rod.

In the FRLs market,advances in filter cartridges, enabling the removal and/or retention of an increased quantity of dirt, are anticipated to continue. Moreover, customers are increasingly demanding quick-fit modular FRLs, which can be supplied with additional equipment and provide a more integrated pneumatic solution.

Customers are increasingly demanding equipment from complete systems builders, which can provide them with all the required equipment, incorporated in a single package. To respond to this emerging trend, all the major manufacturers of pneumatic equipment offer complete control systems and this sector is forecast to see growth above the market average.

Pneumatic fittings are mature products and no major technological innovation is anticipated over the remainder of the forecast period. The fittings market is anticipated to become increasingly competitive, with price being the major competitive factor.

The European market for pneumatic equipment is served by a wide variety of competitors. Many large multinational companies operate in the market, offering a wide product range and an established network of subsidiaries and distributors. A wide variety of more specialised, medium-sized companies also operate in the market. These companies offer a narrower product range and often concentrate their activity in a restricted geographic area or a particular application field.

The market is therefore highly competitive and manufacturers are under pressure to offer competitive prices.

A comprehensive customer service is also a key requirement and the ability to offer an efficient and widespread distribution network is another main competitive factor.

The European pneumatic equipment market is expected to see a continuing and strengthening rise, with demand driven by product development, more competitive prices, a continuing need for replacement and greater penetration into key applications. Pneumatic technology can be expected to further build its position in the total fluid power industry, reflecting the forecast compound annual growth rate of 6.3 per cent from 1997-2004.

For further information contact: Frost and Sullivan, Sullivan House, 4, Grosvenor Gardens, London SW1 0DH, UK. Tel: +44 (0) (171) 915 7824; Fax: +44 (0) (171) 730 3343.