Abstract
Growing Customer Knowledge of Drive Technology Encourages Compressor
Manufacturers
Underlying opportunities such as design improvements aimed at enhancing
operation, efficiency and performance offer potential for growth in the
otherwise mature European industrial air compressors market. Several companies
are focusing on improving air compressor technology to increase performance,
reduce energy consumption and generate less noise. A case in point is the
increasing use of electric drives or variable speed control. The
long-established drive technology has only recently started gaining greater
acceptance as customers realise its key benefits - such as energy cost savings
and superior air compressor performance. Manufacturers that effectively utilise
the advantages of this technology and respond in a timely manner to mounting
customer interest can expect to see a significant rise in demand.
This new research from Frost & Sullivan presents a comprehensive analysis
of the European market for industrial air compressors and spare parts. This
market is examined by product, region and application. Detailed analysis
highlights the main regional trends, while additional forecasts by application
identify key areas of use.
Manufacturers Must Expand Sales and Distributor Coverage
Although the industrial air compressor market is currently facing competitive
and other pressures, it is expected to benefit from the gradual recovery across
Europe's manufacturing sector as a whole. Since the industrial customer base is
highly dependent on compressed air, it expects very quick responses from
suppliers. Customers are inclined to favour local suppliers that can guarantee
fast delivery as well as provide replacement parts.
"Although the market is mature, the large potential customer base means
that manufacturers have scope to extend overall market penetration. One of the
key means of meeting wider demands is to expand the direct sales network or work
more closely with distributors," says the analyst of this research service.
Given current market conditions, companies must work at increasing regional
sales and service to prevent customers from shifting loyalties to manufacturers
that offer reliable and efficient delivery.
Sustaining Competitiveness Critical in the Maturing Market
Increased demand for advanced solutions and design improvements and rising
customer interest in variable speed drive technology are likely to support
future demand and revenue growth. However, as the pace of growth is expected to
be gradual, levels of competitiveness in the market are likely to intensify.
"As competitive pressures heighten, manufacturers will need to focus on
opportunities to build revenues through strategic alliances, acquisitions or
even mergers," says the analyst.
As consolidation becomes rife in this market, leading competitors will need
to identify new niches for further expansion, while smaller participants can
consider strategic partnerships to expand product coverage and reach.
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