Abstract
Research Overview
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By applications:
- U.S. SNCR Equipment Market
- U.S. SCR Equipment Market
- U.S. Low NOx Burners Equipment Market
By technology:
- Post Combustion Control Technology
- Post Combustion Control Technology
- Pre-Combustion Control Technology
Market Overview
Market Maturity Favors Established Manufacturers While Smaller Participants
Face a Challenging Road Ahead
Market maturity and cyclical demand in the U.S. oxides of nitrogen (NOx)
control equipment markets are creating a highly competitive scenario where
market entry could prove difficult for smaller participants. Approximately 20
to 30 manufacturers with established reputation dominate the markets through
close relationships with end users. "Top tier market participants are backing
up their reputation with high-quality products," says the analyst of this
research service. "Utilities, refineries, and industrial end users continue to
prefer companies, which have had substantial experience in the NOx control
equipment markets."
Another entry barrier for prospective participants is the significant
investment required for the manufacturing, sales, and service infrastructure.
Given the cost-cutting measures undertaken by major participants, smaller and
new companies face the challenge of offering technically sophisticated, yet
cost-effective products. Acquisitions and mergers, which has been a popular
trend in the past, could prove to be a mutually beneficial tactic. Through
such an approach, established manufacturers can also add value to their own
businesses, enter important growth markets, and complement their existing
product and service offerings.
Replacement Sales Set to Increase Revenues in the U.S. NOx Control
Equipment Markets
Although there has been a significant decline in the NOx control equipment
market over recent years due to weak capital investment, it is expected to
witness a gradual recovery because of improved business confidence. "Key
revenue-generating factors for the NOx control equipment markets are
replacement and retrofit orders," observes the analyst. "With a growing
economy in the United States, many equipment manufacturers are experiencing an
increase in orders that have been delayed by end users due to the recent
economic downturn." Additionally, new emission standards, such as the Clean
Air Interstate Rule (CAIR) issued by the Environmental Protection Agency, are
increasing the demand for retrofits.
In the long term, providing a comprehensive range of services to complement a
company's products offerings is likely to become vital to remain successful.
Moreover, the in-house cost-cutting strategies among end users place the
responsibilities of installation, commissioning, maintenance, repairs, and
training on the manufacturers.
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