Drying equipment market to grow, says report

Edited by the Engineeringtalk editorial team Sep 20, 2000

Latest research unveiled by Frost and Sullivan shows that the European industrial drying equipment market will continue to display robust growth

Latest research unveiled by Frost and Sullivan, the international marketing consulting company, shows that the European industrial drying equipment market will continue to display robust growth.

The high degree of market substitution and low customer loyalty will serve to keep the market particularly challenging.

A number of exciting opportunities reside in the exploitation of regional pockets of growth and the most buoyant sectors of this market, such as fluidised bed and rotary dryers.

Frost and Sullivan's study puts the value of sales in the European industrial drying equipment market at $534.2 million in 1999.

Demand for industrial drying in Europe is driven by a series of factors that favour investment in new installations or in upgrading the existing equipment, but at the same time hampered by a host of issues, including the decline of the industrial sector and financial considerations.

The widening applicability across industrial segments, comprising chemicals, pharmaceuticals, food, ceramics, sludge and metals processing, will swell the market over the forecast period creating a total value of $741.7 million in 2006.

Increasingly stringent quality standards across Europe for both the final product and the industrial processes will further bolster development of the industrial drying equipment market.

The study highlights: ?Pressure exercised by authorities and various industrial regulatory bodies is mounting, focusing on numerous aspects revolving around the properties of the end-dried product, but also on safety, avoidance of cross-contamination, cleaning and automation.? Prompting growth is the boom in demand for increasingly sophisticated drying equipment boasting advanced design which incorporates enhanced technical features.

At the same time, established and tried and tested drying technologies are cementing their significance in the market.

Augmenting substitution between drying products means that higher growth rates are likely to be experienced by suppliers of emerging technologies.

Prices for industrial drying equipment vary substantially between national markets and, more importantly, among different types of dryers within the individual product segments.

Frost and Sullivan's study highlight the following determinants of price variations - the capacity of the dryer, the scope of supply, the type/technology of drying equipment, the finish of the equipment, the quality/material of construction and the specifications.

Despite these considerations, the general industry pricing trend is currently stabilising after the recent spate of falling prices.

A decline in manufacturing costs, coupled with competitive pressures and the slowdown of growth, are the main reasons behind this trend.

Frost and Sullivan have identified three main tiers of competition and a total number of 160 to 180 market contenders across Europe.

The market concentration is believed to be relatively high, with the leading three companies - GEA Group, APV Anhydro and Glatt Group - claiming a combined share of 39.2 per cent of total market revenues.

Germany takes the lead in Frost and Sullivan's review of national markets, followed by the UK and Eire, France and Italy.

This ranking is expected to change slightly over the forecast period, with France leapfrogging the UK and Eire to claim second position.

Frost and Sullivan is an international marketing consulting company that monitors a comprehensive spectrum of high-tech markets, including the energy and environment industry, for market trends, market measurements and strategies.

This ongoing research is utilised to complement a series of research publications to support industry participants with customised consulting needs.