Pneumatic components market: Changes stir tranquil waters

IHS reports that the pneumatic valve market landscape is starting to radically change as Chinese suppliers start to expand into the U.S. and Europe.

09/23/2013


The global market for pneumatic valves and actuators, estimated to be worth nearly $8 billion in 2012, is undergoing a competitive shakeup as low-cost Chinese suppliers continue to expand into the U.S. and Europe.

Pneumatic power is a well-established technology and the market is forecast to grow essentially in parallel with overall demand for industrial machines, according to the new report entitled “Pneumatic Valves and Actuators” from information and analytics provider IHS.

The market is dominated by a handful of large manufacturers, led by SMC from Japan and Festo from Germany, which together accounted for slightly more than 45% of the worldwide revenue in 2012. 

In general, pneumatic valves and actuators are part of the large market for industrial machinery components. However, just below the surface is a teeming mass of up-and-coming suppliers, many of which are based in Ningbo, China. These companies are aggressively expanding into new markets in the West, a development that is expected to trigger intensified competition for established suppliers. 

The Chinese suppliers are focusing on standard legacy pneumatic valves and actuators and compete very aggressively on price. They now are turning their attention to the large markets in Europe and North America, which they are addressing through local distributors. In order to protect their dominant positions in these massive established markets, incumbent manufacturers are focusing on complex, sophisticated and high-end products and services that are much harder for the low-cost foreign manufacturers to provide. 

Because modern factory operations and processes steadily have been increasing in their complexity, engineers working in these facilities value the control, feedback and condition monitoring properties that the higher-end products offer. Therefore, one of the key focus areas for market-leading suppliers has been pneumatic valve blocks that incorporate networked communications capabilities. Consequently, sales of pneumatic valve blocks are forecast to grow nearly three times faster than revenue for single valves during the next five years. 

In what initially seems to be a flat market for established and simple technology components, there are some key product replacement trends that will influence the future development of the market. The way that market suppliers address these trends will shape the competitive environment in the years to come. Therefore, strategic marketing, product management and business development personnel at these companies would be well advised to get their hands on current, reliable and actionable market intelligence to guide them through the increasingly competitive landscape.

- See other industrial research posted by Control Engineering.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
Control Engineering Leaders Under 40 identifies and gives recognition to young engineers who...
Learn more about methods used to ensure that the integration between the safety system and the process control...
Adding industrial toughness and reliability to Ethernet eGuide
Technological advances like multiple-in-multiple-out (MIMO) transmitting and receiving
Virtualization advice: 4 ways splitting servers can help manufacturing; Efficient motion controls; Fill the brain drain; Learn from the HART Plant of the Year
Two sides to process safety: Combining human and technical factors in your program; Preparing HMI graphics for migrations; Mechatronics and safety; Engineers' Choice Awards
Detecting security breaches: Forensic invenstigations depend on knowing your networks inside and out; Wireless workers; Opening robotic control; Product exclusive: Robust encoders
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
News and comments from Control Engineering process industries editor, Peter Welander.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
Anthony Baker is a fictitious aggregation of experts from Callisto Integration, providing manufacturing consulting and systems integration.
Integrator Guide

Integrator Guide

Search the online Automation Integrator Guide
 

Create New Listing

Visit the System Integrators page to view past winners of Control Engineering's System Integrator of the Year Award and learn how to enter the competition. You will also find more information on system integrators and Control System Integrators Association.

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.