New technological advancements drive demand in an otherwise mature market

Sensor Review

ISSN: 0260-2288

Article publication date: 1 March 2002

142

Keywords

Citation

(2002), "New technological advancements drive demand in an otherwise mature market", Sensor Review, Vol. 22 No. 1. https://doi.org/10.1108/sr.2002.08722aab.005

Publisher

:

Emerald Group Publishing Limited

Copyright © 2002, MCB UP Limited


New technological advancements drive demand in an otherwise mature market

New technological advancements drive demand in an otherwise mature market

Keywords: Gas sensors, Infrared

A explosion in demand for infrared gas sensors and desire for higher specification equipment has kept the gas sensors and analysers market moving upward at a time when there have been few technological advancements in the field.

Initially, growth within the infrared gas sensors sector was slow due to the size and cost of the technology, but improvements in these areas and performance now outstrips other available technologies, according to latest research from market analysts Frost & Sullivan.

The analysts (http://sensors.frost.com) valued the European Gas Sensors and Analysers market at $283.9 million last year. Infrared gas sensors accounted for $112.4 million, 40 per cent, of the revenues. Demand for infrared is forecast to continue over the next few years as applications for the technology increase, with revenues reaching $133.3 million in 2007 (Figure 1).

However, growth comes at a cost. "The advent of smaller, cheaper infrared sensors with low power consumption has made the technology more accessible to a wider range of applications. However, much of this growth has come at the cost of declining revenue shares for other technologies, catalytic gas sensors in particular," explains Industry Analyst Victoria Whiting.

The study also showed a strong trend towards high specification equipment, as many end-users are requesting improved performance and higher accuracy." There is a clear division developing in the market between low, medium and high specification equipment, each of which requires a different focus from the sensor manufactures," Miss Whiting continues.

"The high specification segment presents one of the most significant areas of growth. Price is of lesser importance in this market. Quality and performance, however, are paramount. In order to effectively exploit the opportunities available at the high end of the market, manufacturers have had to expand their resources and develop their technical skills to offer high quality levels in their services and products.

Figure 1

"Growing concerns over health and safety in the workplace are also having an impact on the market. Several high profile accidents have highlighted the need to change attitudes. There is a necessity for employers to place more priority on fitting gas sensing instruments where human lives are at stake.

The greatest hindrance in achieving this has been the expense of installing such systems. However, the falling prices of gas sensors, combined with improvements in productivity, should help to change attitudes towards theuse of the technology, thus increasing demand and broadening the range of applications they are used for.

However, the market is also being restrained by its' own maturity. With the exception of infrared technology, all the technologies featured in the study have reached maturity. There are no significant technological developments on the horizon, limiting the growth potential of the market.

"If market growth is to increase, gas analyser manufacturers must invest more money into research and development so that new technologies and techniques can be exploited," says the reports' co-author Ozan Dogruer." There are a few technologies emerging into the gas sensors market, such as ultraviolet and ultrasound gas sensors but their presence is limited to a few applications at present."

"In order to succeed, new technologies should follow the example of infrared, they must show synergy between high levels of performance and reliability at a reasonable cost and the versatility to adapt to the needs of various applications and end-users."

The chemicals and pharmaceuticals industries continue to provide growing demand for industrial gas sensors. These industries are extremely lucrative and competition is high. Some caution should be taken however, as the chemicals industry is showing signs of moving investment to more economically viable regions such as eastern Europe, Asia and South America, placing future revenues in jeopardy.

The petrochemical and oil and gas refinery industries are expected to represent an important area of growth over the next few years. After recent oil price slumps, these industries appear to be on the road to recovery and prices are slowly increasing. Past troubles in the oil industry have demonstrated the importance of investing in technology, such as gas sensors, which help to improve efficiency and save energy.

Waste and incineration represents a relatively small application for gas sensors but the sector is anticipated to undergo significant growth as efficiency and emissions monitoring considerations become more important. Growth is also expected in food and beverage industries, particularly for dissolved carbon dioxide and food storage monitoring. Another growth area for industrial gas sensors is environmental monitoring, fuelled by growing concerns for more environmentally sound production practices and the introduction of climate change levies.

Report Code: 3982, Publication Date: July 2001, Price: 5000 Euros

For more information contact: Nikki Cole, nikki.cole@fs-europe.com; Tel: +44 (0) 20 7343 8325; http://sensors.frost.com

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