Abstract
Lack of Product Differentiation Reduces Customer Loyalty
Almost all gas sensors and analyzers have similar features and comparable
functions. As a result, customers have become extremely price-sensitive and are
considering less expensive brands. This trend toward commodification is reducing
the revenue flow of participants in this market. With very little technological
innovation taking place, manufacturers are severely challenged to differentiate
themselves from the competitors. The supplier who can demonstrate higher
accuracy, improved efficiency, and increased interoperability with legacy
systems at no additional cost is likely to be the preferred vendor.
This Frost & Sullivan research examines the demand for different types of
gas sensors (such as electrochemical, catalytic, and infrared) and gas analyzers
(such as electrochemical, paramagnetic, chemiluminiscent, thermal conductive,
and flame ionizing) in North America. The research provides a snapshot of latest
competitive and technological trends besides analyzing demand in various
end-user segments.
Increasing Awareness and Introduction of Wireless Gas Sensor Systems
Encourage Market Growth
Gas sensors manufacturers have increased their focus on educating employees
and unions of major end-user industries, such as oil and gas, petrochemicals,
chemicals, pharmaceuticals, and power generation. They are organizing health and
safety workshops in residential campuses located in communities adjacent to the
manufacturing sites. These workshops educate people about the health hazards
caused by toxic gases released by the industries in their neighbourhood.
"Such measures are yielding results. Unions have begun exerting pressure on
managements to install gas sensors and other safety instruments that can
continuously monitor harmful effluents," says the analyst.
To encourage installation of sensors in remote locations and throughout the
plant, participants are upgrading their product portfolios to include wireless
communications solutions. "The gas sensor industry is integrating wireless
technology with their systems by choosing from various protocols, such as
peer-to-peer, duplex communication, blue tooth, IEEE standards, and other
Internet-specific protocols," says the analyst. The reason behind this
transformation is that wireless technology eliminates the cost of expensive
wiring and conduits, reducing the overall cost of installation of safety
systems. It also provides the end user with a variety of communications
solutions besides enabling them to decide on how the systems should communicate
with each other.
Existing and Emerging Opportunities
The chemical and petrochemical industry accounted for nearly 35 percent of
the industry?fs revenue in 2003 and this segment is likely to remain one of the
largest end-user industries of gas sensors and analyzers. "As health and
safety regulations become more stringent, the chemical and petrochemical plants
are expected to upgrade their sensor technologies and increase the number of
sensors throughout their facilities. This upgradation calls for installation of
sophisticated gas sensing devices, thereby increasing market demand –
especially for infrared sensors.
Growth opportunities continue to evolve and one such prospect lies in the
water and wastewater industry. The U.S. Government has substantially increased
the funding for the upgradation and procurement of water and wastewater
treatment equipment and this could create fresh demand for gas sensors and
analyzers. In fact, the municipal wastewater treatment segment is the largest
beneficiary of these concerted efforts toward improving water quality. Many new
plants are under construction and the existing ones are being upgraded. This
resurgence is likely to benefit the participants immensely.
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