World Process Analytical Instrumentation Markets

Published by: Frost & Sullivan

Published: Apr. 19, 2005

Table of Contents

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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