Resilient demand for vacuum pumps across Europe

Stable economic conditions and the explosion of the internet and mobile communications business are just two of the principal drivers creating resilient demand for vacuum pumps across Europe.

Stable economic conditions and the explosion of the internet and mobile communications business are just two of the principal drivers creating resilient demand for vacuum pumps across Europe.

The unprecedented growth seen in the semiconductors sector will help push revenues in the European vacuum pumps industry from $722.8 million in 2000 to $1.06 billion in 2007.

Manufacturers of vacuum pumps are witnessing extraordinary levels of interest in their products, reveals a new study by Frost and Sullivan, the international marketing consulting company.

The industry's broad customer base and vast array of applications provide significant potential for market contenders.

It is for this reason that the vacuum pumps market is heavily interlinked with the general state of industry and the economic climate.

By 2007, growth rates are expected to be moderate as the lifespan of equipment extends, the market approaches a peak of maturity, cyclical end-user markets are passing through slow growth phases, and profits become increasingly marginalised due to rigid competitive pricing.

Robust demand for low maintenance pumps, coupled with the next upgrade cycle for aging vacuum pumps in industrial processing plants will nevertheless support sales in the overall market.

The need to improve efficiency and productivity, the advent of added-value pumps and advancements in vacuum pump technology spell a bright future for the European vacuum pump industry.

The study points out that plummeting prices for steel, the main material used in the production of vacuum pumps, will further prompt an increase in sales.

To remain competitive and prosper in this relatively mature market, manufacturers are implementing a range of strategies.

"The key growth strategy points towards continuous improvements in customer relations through high quality customer service and support, which is established by training, information sharing, and by developing synergies with customers," the study notes.

Other strategies include the improvement of manufacturing techniques to reduce production costs, developing products through research and development, taking advantage of e-commerce, and the constant monitoring of the market to identify potential opportunities.

Increasingly stringent environmental legislation, technological developments, and demand for greater reliability and performance are expected to characterise the European vacuum pump market over the next few years.

Intense competition and customer pressures have forced manufacturers to restrict price increases and offer larger discount incentives.

While customers have and always will be motivated by the relative price of vacuum pumps, they are increasingly opting for products that offer greater cost savings and reliability.

Demand for more sophisticated equipment is expected to increase and hence the available technology should improve.

Consequently, manufacturers are also devoting considerable resources to research and development (R and D).

The rotary vacuum pumps sector - comprising rotary vane, screw, claw and roots vacuum pumps - accounts for the lion's share of the product market.

The projected rise in demand for semiconductors and augmenting sales of oil-free vacuum pumps aid the development of the rotary vacuum pumps market.

The revenue shares of the kinetic and the specialised vacuum pump market sectors are forecast to see an upward trend after 2000, when sales in these sectors will be revitalized by the stellar growth experienced in the semiconductor industry.

BOC Edwards, the major heavyweight in the European vacuum pumps market, has cemented the company's spearheading position through the provision of a product portfolio that meets the requirements of the respective target market.

The company is well-positioned for further exploitation of the vacuum pump market's growth potential through its expertise in particular fields, such as semiconductors, chemicals, pharmaceuticals, coatings and scientific information.

Leybold, Alcatel Vacuum, Pfeiffer Vacuum and Sterling Fluid Systems count amongst the remaining key contenders in the vacuum pumps market that have secured themselves leading positions.

Frost and Sullivan is an international marketing consulting company that monitors a comprehensive spectrum of Instrumentation, Control and Engineering markets for trends, market measurements and strategies.

This ongoing research is utilised to complement a series of research publications, including the European Centrifugal Pumps Market, to support industry participants with customised consulting needs.

Free executive summaries of all Frost and Sullivan reports are available to the press.

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