Analysis Of The European Miniature and Sub-Miniature Pneumatic Components Market
08-Apr-2004
With a projected annual average growth rate of 4.4 per cent over the period between 2004
and 2009, the EUR 313.2 million mini-pneumatic components market is on course to become
the fastest growing sector within the overall European pneumatic components industry. The
principal impetus to expansion is expected to come from new applications in end-user sectors
such as biomedical, analytical instrumentation, food processing and packaging.
An emphasis on highly specialised and effective components with minimised leak and failure
rates are underlining the appeal of mini-pneumatic components in the biomedical and analytical
instrumentation arena. Compliance with strict regulations governing these two sectors has
generally resulted in more costly components, offering enhanced revenue potential.
Continual innovation and developing applications are expected to translate into steady
demand from these two end-user sectors. Already the largest end-user group for mini-pneumatic
components, the biomedical sector is expected to generate nearly 20.0 per cent of market
revenues by 2009 with the analytical instrumentation sector generating the fourth largest
revenue share.
The food processing and packaging industry also offers significant growth prospects. Mini-pneumatic
components are being extensively used as automation solutions to reduce labour-related
costs. Propelled by new processes and packaging for food products, this end user group
is expected to account for the third largest revenue share - 11.9 per cent - of the total
mini pneumatic components market by 2009.
Apart from these significant end-user sectors, mini pneumatic components are also finding
use in semiconductors and high tech, conveyor systems, transportation, automotive, plastics,
chemicals and oil industries. Applications in robotics, animatronics, aerospace and defence
and other industrial manufacturing sectors confirm the rising popularity of mini pneumatic
components.
Manufacturers are reinforcing these positive trends by closely evaluating and then matching
end-user needs to pneumatic solutions. Such initiatives are helping mini-pneumatic components
compete for applications that were once fulfilled by small to medium bore-size pneumatic
systems.
The simplicity and low cost of pneumatics technology is a major reason for its popularity.
Pneumatic components are simple in design, operation and maintenance. A proven, easily
programmable technology successfully used in automation, it offers enhanced cost savings
over competing systems such as electric drives that are expensive, and have high maintenance
costs.
"As long as mini-pneumatic component manufacturers maintain a consistent pricing structure,
alternative technologies such as electric drives are not likely to encroach upon these
applications," says Frost & Sullivan (http://www.frost.com) Research Manager Mik Sabiers.
"The comparative advantage of lower installation prices, lower replacement costs, and exceptional
displacement rates should continue to ward off the competition that electric drives offer
to larger bore-size pneumatic systems."
At the same time, pneumatic valve manufacturers are finding creative and innovative ways
of increasing the flow of a pneumatic valve. This has resulted in the ability of end users
to utilise smaller port sizes in their manufacturing systems. In the long term, as more
end users are converted to smaller bore size pneumatic automation solutions, revenue potential
of mini-pneumatic components is set to grow.
In 2002, mini-pneumatic valves accounted for the largest percentage of revenues of the
total mini-pneumatic components market. Their use in new biomedical, analytical instrumentation,
and food processing and packaging applications is likely to help this segment garner nearly
47.1 per cent of overall market revenues by 2009. It is expected to be followed by the
actuator segment and then the mini-pneumatic filter regulators and lubricators (FRL) segment.
Over 65 companies were active in the European mini-pneumatic components market in 2002.
While multinationals such as SMC and Festo dominate, several smaller manufacturers (Koganei,
Humphrey, CKD, Lee Valve, and Numatics) with niche-focussed product offerings have been
able to effectively compete with the larger, more full line manufacturers.
For all market participants, intensifying competition is promoting price pressures. As
competition has focussed on price rather than on quality or features, manufacturers have
been forced to reduce prices. There is the risk of the market becoming a commodity-type
one. In this situation, innovation, product development and partnering with end users to
design customised solutions are likely to be key to success.
"The development or procurement of new and innovative products is essential for the furthering
of market share," notes Mr Sabiers. "This strategy can be implemented in three different
ways: first, through the propagation of internal R&D departments; second, through the acquisition
of companies offering products missing from the existing product line; and third, through
a focus on strategic alliances and private labelling."
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