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Engineering Industry Reports and Surveys
News Release from: Frost and Sullivan
Edited by the Engineeringtalk Editorial
Team on 03 April 2006
Accuracy is key in measurement gauge
market
Rising measurement needs, particularly in the automotive industry, are fuelling demand for measurement gauges.
Rising measurement needs, particularly in the automotive industry, are fuelling demand for measurement gauges At the same time, increased manufacturing setups in the growth regions of Asia Pacific and niche growth opportunities are also supporting revenue generation in the world gauges market
The need for critical measurements from end-user sectors such as aerospace and defence as well as metal industries is promoting demand for gauges.
End-user preference for tighter tolerances coupled with custom specifications is boosting the need for accurate gauges.
Uptake is projected to be especially strong in the automotive industry where gauges meet the need for specific measurements and high accuracy.
Key automotive applications include alignment, profiling, dimensional measurement and control.
With no recent technological advancements, manufacturers are discovering new application needs with the available technology and equipment.
By catering to specific end-user needs and targeted applications in select industries, manufacturers have managed to build a strong customer base.
Currently, globalisation is acting as a double-edged sword.
Due to limited technological advancements, price has emerged as a key product differentiator.
To optimise costs, there has been a shift in focus towards eastern Europe and a few Asian countries, including India and China.
In a global economy, the key challenge for European and the US manufacturers is to match the cost advantage of their Asian-based competitors.
On the other hand, strong growth in Asia Pacific is actually supporting market expansion.
A robust manufacturing sector with sustained construction and infrastructure expansion is offering immense growth opportunities for sales of gauges.
China and India, with their vast populations, offer attractive prospects in the automotive, telecommunications and electronics industries.
This, in turn, will drive uptake of gauges in the region.
Already, many participants are looking to establish new branch offices in China and India in order to have a global presence, while leveraging tremendous opportunities anticipated in the Asia Pacific region.
Supported by these trends, the $147.7 million world measurement gauges market (comprising height, depth, ring as well as plug and bore ID gauges) is poised to accumulate $187.42 million in 2012.
Key competitive factors include price, geographic coverage and multifunctional product capabilities.
The ability of well-established companies to offer customised product solutions has stifled smaller companies while creating strong entry barriers to new competitors.
In the highly fragmented gauges market with different market participants having strengths in distinct segments, the top three market participants accounted for a share of 55.8% in 2005.
"With the increasing competition in the gauges market and companies offering customised solutions, it becomes evident that all market participants need to meet specific end-user needs and requirements", suggest Frost and Sullivan Research Analyst Prathima Bommakanti.
"In order to maintain a strong customer base, manufacturers need to develop more custom related solutions, broad product folios, timeliness in delivery, value-added services and institute an efficient customer feedback programme".
A major challenge will remain the lifecycle of gauges.
With end users demanding durable machines with increased productivity, gauge manufacturers are working on optimising the machines and increasing their lifecycle.
This longevity is resulting in lower unit sales.
Despite this, growth projections are optimistic.
"By having a global focus, forging strategic alliances and achieving a strong customer base through the provision of enhanced products and value-added services, gauge manufactures can raise their competitive edge, while charting out a successful blueprint for future growth", concludes Bommakanti.
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