Abstract
Research Overview
Increased Price Pressure Forcing Manufacturers to Re-evaluate Production
The western European markets for above-the-neck personal protective equipment
(PPE) are highly dynamic and pose several challenges for suppliers. While the
market has seen a spate of mergers and acquisitions in recent times,
increasing levels of price sensitivity among end users is forcing market
participants to re-evaluate their production options. In improving their cost
competitiveness, European manufacturers are already evaluating the Far East,
particularly China, as outsourcing destinations for production activities.
Further, some industry participants have also relocated their production
facilities from high-cost western economies to low-cost regions such as the
Far East.
New Generation Integrated Systems and Niche Markets Offer Market Opportunities
As the needs of the end-user industries become increasingly sophisticated, the
application landscape of above-the-neck safety equipment is undergoing a
change. Customers are beginning to demand high-end products at competitive
prices, and integrated systems that represent an 'all in one' product are
increasingly preferred among some end-user industries such as welding. While
highly demanding industries such as metal processing, bulk materials handling,
site demolition and decommissioning can also benefit from integrated systems,
niche markets such as laser eye safety and electronic earmuffs, still in their
infancy stage, offer good scope for above-the-neck PPE industry participants.
However, end-user awareness in certain applications remains low, calling for a
greater effort in improving customer education. For example, in the eye
protection market, safety goggles are sometimes used for applications that
actually require a safety spectacle. "Apart from raising awareness levels
among end users, market participants will also have to address the low level
of acceptance and worker attitudes in certain countries, something that is
apparent across many types of PPE," notes the analyst of this research
service." While northern Europe has been more proactive in the use of
above-the-neck PPE, southern Europe has been relatively slow in adopting the
same."
Central and Eastern Europe Emerge as Upcoming Markets for PPE
Regionally, Germany and the United Kingdom are the largest revenue generating
markets for above-the-neck PPE, with Germany accounting for around 22.0 per
cent of the market revenues. Eastern Europe is also fast becoming an important
market for European producers from both a consumer and production point of
view and central and eastern European regions are assuming increasing
strategic significance as upcoming markets for PPE. In respect to individual
product trends, eye protection accounts for the largest revenues and the
market for hearing protection has also witnessed a tremendous boost with the
introduction of electronic earmuffs.
"Overall, while the above-the-neck PPE market in western Europe is relatively
saturated; legislation, education, technical innovation and replacement of
safety equipment ensure the market to be dynamic," says the analyst.
"Successful companies will be eager to invest in research and development to
push back the limits of technology, thus gaining an early mover advantage."
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