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Copyright © 2001, MCB UP Limited
Revenues swell as industrial vision systems continue to rally end-user awareness
Revenues swell as industrial vision systems continue to rally end-user awarenessKeywords: Vision
Revenue growth in the European industrial vision systems markets will rapidly accelerate as end-users continue to realise the core benefits of such products. A new study by Frost & Sullivan, the international marketing consulting company, illustrates the wide-reaching effect of these tools being accepted as an integral part of the manufacturing process. Product development has facilitated greater market penetration in recent years, and continued technical innovation will prove pivotal in sustaining prosperity.
Total market revenues will rise from US$574.9 million in 1999 to an impressive US$2.10 billion by 2006. The scale of growth is reflected in a rampant compound annual growth rate of 20.3 per cent. Optimistic forecasts are primarily a result of the increasingly fundamental role that vision systems play within manufacturing. Frost & Sullivan Research Analyst Robert McNally comments; "Growth rates are expected to continue rising throughout the forecast period, with rapid technological developments making vision systems increasingly indispensable."
The increasing flexibility in automation and the growth in the electronic components market are proving to be major drivers affecting the industry. European legislation is establishing itself to be a positive factor, as vision systems assist organisations to meet stringent requirements concerning quality and waste control. In contrast, the industry faces a number of important challenges, including the reduction of associated capital costs and minimising the training required for end-users to employ systems successfully.
Analysis currently shows the market for 1-D and 2-D metrology systems as the largest market sector. The markets for guidance systems and web inspection systems follow in second and third place respectively, two sectors that are demonstrating particularly strong growth.
Major players in the market include Cognex, Honeywell Measurex and RVSI Europe. However, no single company exerts a clear domination of the market, manufacturers achieving market shares of 5.0 per cent or less account for 81.6 per cent of total market participants. Companies within the market tend to hold a transnational market base, facilitating the exploitation of economies of scale.
Companies experiencing significant organic growth can be highlighted as those investing large amounts of capital into research and development to support the introduction of new products. This is having a direct effect on demand, as well as promoting growth in the markets in which such participants are active.
The forging of close relationships within the market is proving advantageous, market participants have laid down key partnerships with a number of end-users. The latter has included semi-conductor original equipment manufacturers (OEMs) and parties within the automotive industry.
Companies are pursuing a number of individual strategies in order to achieve competitive advantage, including approaches that focus on niche markets and those not fully served by standardised solutions. In turn, a number of companies offer a variety of industrial vision functions on one system, thus providing multifunctional systems to such markets as the automotive and semiconductor industries.
In conclusion, the European industrial vision systems market is expected to grow extensively throughout the forecast period. The increasing use of these systems by the electrical, electronics and automotive markets through OEM and end-user sales is expected to be important for future growth.
Rising end-user demands, coupled with the lack of set standards in the industry "highlight a growing need for rapid technological development. Market participants need to remain committed to product innovation and maintain extensive research and development activities". Robert McNally summarises: "Continued technical innovation has created demand for the systems, which are now a more reliable and accurate means of inspection and quality control than previously available. Developing standards, continuing technical innovations, and the trend towards PC platforms will be the major factors influencing future developments in this market."
Report Code: 3779-10; publication date: June 2000; price: 3,950 Euros. WWW: www.frost.com