Balance features, price in process analytical instruments market, analysis says
A balance between advanced product features and price is crucial for success in the process analytical instruments market, a recent analysis from Frost& Sullivan (F&S) reveals.
A balance between advanced product features and price is crucial for success in the process analytical instruments market, a recent analysis from Frost & Sullivan (F&S) reveals. “World Process Analytical Instruments Market” indicates that revenue in this market totaled $2.28 billion in 2004 and is projected to reach $3.07 billion in 2011. Demand for new equipment in developing regions allows manufacturers of process analytical instruments to sustain revenues despite stagnating need from North America, Europe, and Japan. The study analyzes key market dynamics and trends that influence demand for process analytical instruments, such as chromatographs, spectrometers, gas analyzers, and liquid analyzers.
“Rapidly developing markets are showing excellent growth rates both in number of units sold and market revenue, but higher profit margins, which vendors expect from mature markets, are hard to come by,” says T.V. Navin Kumar, F&S research analyst. At the same time, end-users in developed countries demand cheaper products with more product features and benefits, the report goes on. To maintain profit margins, vendors need to offer product variants and services at different price levels to fit the individual needs of the developing and developed markets, says F&S.
The report notes that customers demand cheaper instruments that communicate with other process analyzers. Such technology advances would increase profit margins and stimulate demand in mature markets, F&S says, adding that since fundamental instrument design remains similar, a good strategy for differentiation would be to focus on associated electronics and communications of process analyzers.
Introduction of software and digital communications, add-on features such as inter-connectivity with other process analyzers, and operability with handheld devices and laptops are gaining in significance, the report says. Going forward, it concludes, an appropriate blend of advanced product features, excellent customer support and service strategy, and competitive pricing will be advance products in the process analytical instruments market. The report includes revenue forecasts, demand analysis, and strategic recommendations that assist service providers in capturing market share.
—Jeanine Katzel, senior editor, Control Engineering, email@example.com