High-end sector to lead fight back of European pressure sensors and instruments markets

Citation

(2000), "High-end sector to lead fight back of European pressure sensors and instruments markets", Sensor Review, Vol. 20 No. 4. https://doi.org/10.1108/sr.2000.08720dab.001

High-end sector to lead fight back of European pressure sensors and instruments markets

High-end sector to lead fight back of European pressure sensors and instruments markets

Keywords Sensors, Measurement

The rise in demand for high-end applications and the trend towards electronic pressure measurement is stimulating growth for the European pressure sensors and instruments markets. In an industry that has recently endured turbulent times on the back of sustained negative pricing pressures, however, a predicted upturn in the overall market fortunes will be well received by market participants. Increasing demand for both high performance products and bus networking systems is set to be a key factor in terms of future market revival.

A new strategic research by Frost & Sullivan, the international marketing consulting company sheds new light on this embattled market. The study entitled the European Pressure Sensors and Instruments Markets forecasts total market revenues to rise from US$447.5 million in 1999 to US$488.2 million by 2006. A lack of spending in 1999 is expected to lead to stronger demand from 2000 onwards as more end-users need to update and maintain their process plants. Subsequently, Frost & Sullivan predict the compound annual growth rate at 1.3 per cent over the forecast period 1999-2006.

The main drivers making an impact on the total market include advances in manufacturing, bus networking and the demand for higher specification pressure instruments. In turn, technology trends within the industry provide substantial focus towards the production of creating smaller, smarter and cheaper pressure instruments. The dawn of sophisticated manufacturing techniques, e.g. micromachining, continues to facilitate the high levels of accuracy and reliability required by such products.

The piezoresistive pressure sensors and instruments market is essentially the largest sector, with total revenue set to rise to US$180.2 million by 2006. Indeed, this sector and the capacitive pressure sensors and instruments market are making significant gains in market share. Essentially such inroads are being made at the expense of the market for mechanical products.

The overall market is composed of a few large multinationals, a large number of medium-sized companies and a few small and specialised companies. Fisher Rosemount are the undisputed market leaders, owing to the company's strong presence in the high-end piezoresistive and capacitive transmitters sector. Subsequently, ABB's rise to the number two position has been leveraged on the back of recent acquisitions. In turn, Wika hold a significant position with respect to low-mid-range applications within the process industries. In reference to the overall market structure, Frost & Sullivan industry analyst, Victoria Whiting, comments:

Some companies are employing a policy of acquiring companies or entering strategic alliances. As a result, many more mergers and acquisitions are expected in the future, leading to a more consolidated market dominated by a handful of major manufacturers.

The majority of growth in the future is likely to be derived from high-end process applications where the most advanced technologies are in demand. This is coupled with the continued replacement of mechanical switches and gauges in the low-mid-range applications. Indeed, strategic analysis draws particular attention to the importance of market positioning, Victoria Whiting summarises:

It is important for a company to decide whether to participate in the low end or high end of this market. Low price products have tight profit margins but require little service support or additional extras. Companies offering high-end solutions enjoy larger profit margins but must be in a position to offer benefits such as any additional software required, quality assurance, training and service support.

Acquiring competitive advantage is proving increasingly difficult; however, manufacturers have been increasingly successful in cost reduction techniques. Trends towards digital equipment and bus networking systems are positive features of the market, which are expected to play an increasingly important role in the future. However, it is perhaps the drive to increase efficiency and improve economy in the process industries that is of vital importance for renewing interest in the market. Indeed, the latter is expected to continue to drive market growth in the future.

Frost & Sullivan is an international marketing consulting company that monitors the industrial market for trends, measurements and growth rates. This study is utilised to update a series of online research such as World Temperature Sensor Markets – No. 5922-32 and European Temperature Sensors and Instruments Markets – No. 3813-32. This is complemented by support for industry participants with custom consulting needs.

Report code: 3864-32; publication title: European Pressure Sensors and Instruments Market; publication date: April 2000; price: 4,150 Euros.

Further information is available from Frost & Sullivan, Sullivan House, 4 Grosvenor Gardens, London SW1W, 0DH. UK. Tel: +44 (0)20 7730 3438; Fax: +44 (0)20 7730 3343; E-mail: Benjamin.Barwick@fs-europe.com; Web site: http://www.frost.com