Abstract
Developing Nations Open up New Growth opportunities for Process Analytical Instruments
Manufacturers of process analytical instruments need to look beyond mature markets in the
developed regions and focus on the growth opportunities that emerging economies are offering. Demand
for new instruments in North America, Europe and Japan is minimal, and the replacement markets also
fail to sustain demand since installed process analyzers have a lifespan of 15-20 years. With
numerous Greenfield projects and increasing capital expenditure on infrastructural development,
countries such as China, India, Indonesia, Thailand, and Russia will allow manufacturers to sustain
revenues. While these emerging markets would increase unit shipments and overall market revenues,
manufacturers will have to bear in mind that marketing high-end products to customers in these
regions could pose a challenge. In order to maintain profit margins, companies must offer product
variants and services at different price levels to fit the individual needs of the developing and
developed markets.
This Frost & Sullivan research service analyzes the key market drivers and restraints that
influence demand for process analytical instruments such as chromatographs, spectrophotometer, gas
analyzers, and liquid analyzers. It analyzes key trends in the product design, development, and
marketing and also offers revenue and demand forecasts across the key market segments. The study
offers strategies in a competitive framework and proposes recommendations for market penetration and
growth.
Government Regulations and Expanded Product Portfolios to Rejuvenate Mature Markets
Government and industry association regulations are stressing on environmental issues and better
quality control, therefore increasing demand for process analyzers. "New government regulations
in North America, western Europe, and Japan are helping to stabilize the demand in developed
countries," observes the analyst of this research. "Compliance to different safety and
environmental standards, especially in the chemicals and petro-chemicals industries is also likely
to spur demand for process analytical instruments."
Consolidation is another emerging trend in the process analytical instruments market. In an
effort to expand product portfolio and enter new markets, analytical instrument manufacturers are
increasingly acquiring smaller companies with specialized capabilities. With no change in the
fundamental product design and features, embedded software is becoming increasingly important.
Companies with limited experience in this area would benefit from acquiring data management firms.
Focus on Design and Development to Sustain Profit Margins
While growing demand from certain end-user categories such as the chemical, petrochemical
industries, pharmaceutical, biotechnology, and water and wastewater industries is a positive sign,
vendors are under pressure to deliver affordable yet technically advanced process analytical
instruments. "In order to maintain profit margins, manufacturers will have to focus on value
engineering and on varying the product designs right at the production level," notes the
analyst.
Introduction of software and digital communications into the instruments is an emerging trend
that is catching up with most vendors in the market. Add-on features such as inter-connectivity with
other process analytical instruments and interoperability with handheld devices and laptops are also
gaining in prominence.
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