Western European Markets for Above-the-neck Personal Protective Equipment

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."