Resurging Demand from End User Industries Boost World Condition Monitoring Equipment Markets

Aug. 18, 2011 - PRLog -- MOUNTAIN VIEW, Calif. – Aug. 17, 2011 – As with most industries worldwide, the condition monitoring industry felt the repercussions of the economic slowdown, undergoing a period of uncertainty and downsizing. However, 2010 was a turnaround year as key end user markets for condition monitoring equipment recovered strongly, dramatically spurring demand.

As end user industries began to avidly invest in condition monitoring and machine protection programs the industry was able to shake off the losses from the previous years and resume its upward growth trajectory.

New analysis from Frost & Sullivan, World Condition Monitoring Equipment Market, finds that the market earned revenue of $1,273.3 million in 2010 and estimates this to reach $1,757.9 million in 2015.

“While traditionally large users of condition monitoring equipment, such as oil and gas and power generation industries maintained a reasonable level of demand during the downturn, other process industries including pulp and paper, chemicals and food and beverage saw a demand upsurge,” says Frost & Sullivan Program Manager Vijay Mathew. “In addition, relatively smaller end user segments such as mining, sugar, wastewater, naval and solar also drove demand for condition monitoring solutions in 2010.”

However, like most technology-driven instrumentation industries, the condition monitoring market is dominated by incumbents who drive industry growth, price points and technology innovation. This restricts the growth and business potential of some of the smaller participants who may not have the financial wherewithal or marketing strengths that their larger counterparts command. This challenge can be overcome by focusing on emerging opportunities from geographical, technological and application perspectives.

“Companies in this space are adopting new and different approaches that fulfill condition monitoring requirements,” says Mathew. “Vendors must be attuned to the nuances of the market and recognize that customers are looking for simple, yet efficient solutions that can analyze and provide insight into machine conditions without having to spend excessively or interpret large volumes of data.”

Trends indicate that in North America and Europe, the condition monitoring business will be driven by upgrade and retrofit opportunities. As such, it is likely that end users will continue working with their current supplier of condition monitoring systems or vendor. In Asia Pacific, however, new equipment sales and fresh installations are expected to drive revenue.

“Opportunities abound in this market, and it is important for new participants to identify them,” adds Mathew. “For instance, renewable energy, particularly hydroelectric and solar, is an end user market that offers significant growth potential for the future.”

Customers, with limited budgets, who cannot afford permanent systems, can opt for temporary online systems. Helping companies that have identified a particular asset or machine with regular problems by installing a temporary system to gather data over a certain period of time till the problem is identified and resolved, presents another important revenue opportunity for condition monitoring vendors.

If you are interested in a virtual brochure for this study, please send an email to Sarah Saatzer, Corporate Communications, at sarah.saatzer@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

World Condition Monitoring Equipment Market is part of the Test & Measurement Growth Partnership Service program, which also includes research in the following markets: Digital X-ray Technology: The Future of Industrial X-ray Inspection, Renewable Energy Opportunity: Wind Testing, World Nondestructive Test (NDT) Equipment Markets, and Chinese Mechanical Test Equipment Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.