Heightened Competition Triggered by Consolidation Activity Galvanises European Gas Detector Market

29-Sep-2006

According to Frost & Sullivan, the European gas detector market is experiencing a period of renewed growth. Heightened competition has motivated several market participants to lower prices, launch innovative products and establish novel marketing strategies in order to ensure continued growth. Frost & Sullivan finds that the European Markets for Safety Gas Detection Instruments earned revenues of EUR 369.6 million in 2005 and estimates this to reach EUR 458.3 million in 2012.

"A renewed sense of competition, derived from a slew of recent mergers and acquisitions, is firing growth in the gas detector market," observes Frost and Sullivan Research Analyst Paula Connor. "The companies not involved in these market movements are determined not to lose market share to those growing by acquisitive means and are lowering prices and increasing their visibility to ensure their position on the market."

This represents a marked change from two decades ago when the market was going through a period of low growth and low competition, with companies content to maintain, rather than expand, their existing market share. Over the past 5-6 years, however, the market has been galvanised; growth rates are rising once more and end users are becoming increasingly discerning.

One negative consequence of the increased competition has been the swift drop in unit prices due to companies lowering their prices in order to win contracts away from their competitors. Many market participants are concerned that such price erosion will continue indefinitely. "Some unit prices have dropped to the stage where they are untenable," explains Ms. Connor. "With such a high degree of competition, the end user has emerged king of the market place."

A strategy to overcome this challenge is to introduce novel products since customers are willing to pay a premium for detectors with new capabilities or functions. Gas detectors save lives; people are willing to pay more when manufacturers offer them assured peace of mind.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the European Markets for Safety Gas Detection Instruments, please send an e-mail to Janina Hillgrub, using the 'Contact' button below.

https://www.chemeurope.com/en/news/58306/heightened-competition-triggered-by-consolidation-activity-galvanises-european-gas-detector-market.html