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
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Water use efficiency: Diminishing water quality, escalating costs; Lowering building energy use; Power for fire pumps
Building envelope and integration; Manufacturing industrial Q&A; NFPA 99; Testing fire systems
Labs and research facilities: Q&A with the experts; Water heating systems; Smart building integration; 40 Under 40 winners
Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.