EMEA revenue growth for hazardous area equipment to halve in 2013

Revenue in 2013 for hazardous area equipment is forecast to reach €2.67 billion, growing at 5.2%, just half the rate of 2012.

04/23/2013


IHS Inc.Sales revenue this year of hazardous area equipment in the Europe-Middle East-Africa (EMEA) region will grow by less than half of what was estimated in 2012, but will then stabilize from 2014 onward, according to a recently published report from IMS Research, now part of IHS. 

Revenue in 2013 for hazardous area equipment is forecast to reach €2.67 billion, growing at 5.2%, just half the rate of 2012. Prospects for next year are predicted to improve when revenue hits €2.91 billion, representing growth of 8.9%.

By 2016, revenue will amount to €3.4 billion, equivalent to a five-year compound annual growth rate of 8.4%. In general, unit shipments are forecast to grow at a slightly higher rate reflecting overall price pressure. An exception to this growth is low-voltage motors, which are subject to increased product development and material costs as they are increasingly required to meet legislation that demands greater operating efficiency.

The market for hazardous area equipment is highly influenced by capital expenditure in the oil and gas industry, said John Morse, senior analyst for discrete automation and author of the report. “Not all orders for any specific project are issued the moment a project is awarded. Orders are scheduled throughout the build, and so have the effect of delaying and smoothing out the demand pattern.”

Morse continued: “The factors influencing the predicted decline in EMEA growth became clear from interviews conducted during research for the report. During 2011 and 2012, uncertainty of the euro, the troubled economies of some EU countries and political unrest in parts of the Middle East and North Africa, all resulted in projects being temporarily put on hold. Such factors were forecast to affect orders in 2013, when those projects would normally be in progress.”

Even so, the report concludes that the longer-term prospects for hazardous area equipment sales in EMEA look bright. The euro did not collapse in 2012 and unrest, though still present in some Middle Eastern countries, has not seriously affected world economies.

Projects delayed during the latter part of 2012 are predicted to revive during this year, generating the return to greater revenue growth from 2014 to 2016.

Source: IHS, Inc.



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.