Abstract
Falling Prices and Margins Necessitate Creative Strategies
Limited opportunities due to market maturity are increasing price-based
competition and making the European industrial air filtration (IAF) equipment
market more challenging than ever before. With economic recovery from the recent
recession being slow, narrow profit margins are driving many companies to
explore the possibility of operating in various segments adding extra value to
supplement their income. Many multinationals are avoiding the mass market or
abandoning operations in markets geared around low prices and replacement sales.
Focussing only on specific end-user markets and/or remaining competitive on
price seem to be the best expansion strategy. Partnering with end users to
overcome price pressures and enable more customized service can also help IAF
suppliers.
This Frost & Sullivan research service analyses the European markets for
industrial air filtration equipment. The analysis segments the market by product
type into bag filters, cartridge filters, sheet/panel filters, HEPA/ULPA
filters, activated carbon filters, electrostatic precipitators, and oil mist
collectors, providing insights into market drivers, restraints and areas of
growth.
Increased Health and Safety Regulations Boost Industry
"Health and safety matters are growing in importance throughout Europe
with the main result being a reassessment of the types of filtration equipment
used by many end users," says the author of the study. "The change is
partly due to increased enforcement of EU regulations in member states and
partly the result of heightened end-user awareness and demand for improved
worker safety."
The focus on health/safety is necessitating a proactive approach from IAF
equipment suppliers to optimise market opportunities. Since different European
states adopt different approaches towards indoor air quality and its
enforcement, suppliers would do well to adopt suitable sales strategies. For
instance, accession states such as Poland, Estonia, Latvia, and Lithuania may
allow less demanding technologies such as electrostatic precipitators in the
treatment of oil mists while others such as the Scandinavian countries have more
stringent policies and demand that equipment with the highest specification be
installed.
Move Towards More Efficient Removal Technologies
"Upgrading towards more efficient and sophisticated units by existing
users could be one of the main areas of future development - a feature that is
much more developed in many markets in northern Europe," notes the author.
Further, the gradual upturn in major west European economies is expected to
trigger renewed investment in new systems. As the need for higher efficiency
boosts interest in better filters, maximum demand is likely to be from the
process sector: food and beverage, chemical and pharmaceutical/laboratory
applications. Revenues in cartridge, bag and HEPA/ULPA filters are likely to
expand, while the sheet/panel filter market revenues will most probably decline.
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