MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES FINAL REPORT December 1999 COMMISSION OF THE EUROPEAN COMMUNITIES DG III Contact TAYLOR NELSON SOFRES CONSULTING Pierre LAMBLIN ( 33 01 40 92 45 81 Olivier PEZZETTA ( 33 01 40 92 44 08 HCI / 2160 CONTENT 1. EXECUTIVE SUMMARY____________________________________________________________________________________3 2. OBJECTIVES OF THE SURVEY ______________________________________________________________________________6 3. SCOPE OF THE SURVEY __________________________________________________________________________________7 4. METHODOLOGICAL APPROACH _____________________________________________________________________________9 5. QUALITATIVE ANALYSIS _________________________________________________________________________________10 5.1. Structure of the ATEX market_____________________________________________________________________________________________ 10 5.2. Position of the actors on the 94/9/EC Directive _______________________________________________________________________________ 18 6. QUANTITATIVE ANALYSIS ________________________________________________________________________________25 6.1. Electrical motors _______________________________________________________________________________________________________ 25 6.2. Mechanical products intended to be used in potentially explosive atmosphere ______________________________________________________ 38 6.3. Lighting ______________________________________________________________________________________________________________ 60 6.4. Protective systems _____________________________________________________________________________________________________ 63 6.5. Instruments ___________________________________________________________________________________________________________ 66 6.6. Power distribution equipment _____________________________________________________________________________________________ 69 ANNEXES ______________________________________________________________________________________________72 Annex 1 : List of all manufacturers ________________________________________________________________________________________________ 73 Annex 2 : Main trade flows of Ex and non-Ex mechanical products _______________________________________________________________________ 76 T A Y L O R N E L S O N S O F R E S - Consulting ______________________________________________________________________________________________ 2. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 1. EXECUTIVE SUMMARY The total European Union market concerning the products intended for use in potentially explosive atmospheres and covered by the 94/9/EC Directive amounts to about Euros 2 673 million for the products under study, or between 1 and 20% of the whole E.U. market of Ex and non-Ex products depending on the nature of the product: n n Non-domestic cooling and ventilation equipment intended for use in potentially explosive atmospheres represent the leading E.U. market in value (Euros 856 million), beyond pumps (Euros 256 million) and electrical instruments (Euros 348 million), Highest proportion of sales of products intended for use in potentially explosive atmospheres in total sales concerns pumps (20%), medium & high voltage motors (13%) as well as non-domestic coding and ventilation (9%). Breakdown of the E.U. market of products intended for use in potentially explosive atmospheres for products under study Of which used in potentially explosive atmospheres Total E.U. market 153 13% 1 150 Motors (Medium & High Voltage over 1000 volts) 36 13% 280 Lighting 94 1% 9 780 348 (1) (1) Power Distribution Equipment 214 (1) (1) Total 845 - - Basic Electrical Ex Equipment Motors (Low Voltage up to 1000 Volts) Instruments (1) E.U. ATEX market (Million Euros) (Ex and non Ex) : Products used in potentially explosive atmospheres are not in the same categories as those used in non hazardous areas. T A Y L O R N E L S O N S O F R E S - Consulting ______________________________________________________________________________________________ 3. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) MECHANICAL PRODUCTS E.U. ATEX market (Million Euros) Of which used in potentially explosive atmosphere Total E.U. market (Ex and non Ex) Pumps 436 20% 2 183 Gears and bearing systems 265 8% 3 310 Total 701 13% 5 493 E.U. ATEX market RELATED MARKET (Million Euros) Of which used in potentially explosive atmosphere Total E.U. market (Ex and non Ex) Handling and lifting equipment 256 3% 8 520(2) Non-domestic cooling and ventilation 856 9% 9 500(3) 1 112 6% 18 020 Total Specific Ex products Protective systems E.U. ATEX market (Million Euros) 15 Source: TN SOFRES Consulting, Manufacturers (2) Figures given by VDMA for E.U. market of handling and lifting equipment include engineering services which represent between 30 to 50% of the total. Engineering, services are not concerned by the new directive 94/9/EC and have been excluded from the scope of this study. (3) Figures given by IFO/MBI for E.U. market of non-domestic cooling and ventilation include engineering services which represent between 20 to 40% of the total. Engineering services are not covered by the new directive 94/9/EC and has been excluded from the scope of this study The markets of products intended for use in potentially explosive atmospheres are very specific: n n n Oil and gas and chemicals represent the major end-user sector for those products, Principal distribution channel is dedicated to OEMs (Original Equipment Manufacturers) which are in particular in charge of the complete assembly, and very few to final end-users, Foreign trade consists principally of intra-European exchanges. T A Y L O R N E L S O N S O F R E S - Consulting ______________________________________________________________________________________________ 4. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) In each European market segment of products intended for use in potentially explosive atmospheres, the manufacturers are not so numerous and often specialise in a limited range of products in a niche market with a significant market share and few competitors. In addition, the leading manufacturers of products used in potentially explosive atmospheres are playing a leading role in their respective national markets but also on the other European markets. The trend towards a reduction of the number of players is explained by increased merging/acquisition operations owing to scale economy and cost sharing related to development of technical innovations, in particular concerning the components/products that are protected by intrinsic safety. Most manufacturers feel concerned by the 94/9/EC Directive, with the exception of some manufacturers of mechanical products that consider that their products do not represent a safety risk. In addition, as for protective mode, there still exists a competition between the various manufacturers, mainly in terms of marketing arguments rather than for technical reasons. Most people interviewed concerning the application of the 94/9/EC Directive have a contradictory opinion: n n On the one hand, it is said that the number of actors and products intended for use in potentially explosive atmospheres will decrease whereas prices will increase at the same time, On the other hand, it is said that there will be minor changes owing to the high proportion of products intended for use in potentially explosive atmospheres designed according to the old approach, which are in fact already compliant with the new approach. In addition, certain manufacturers suffer from a lack of communication about the technical limits of the 94/9/EC Directive. In this context, we recommend to improve the communication, by providing a suitable service dedicated to answer all questions of manufacturers under the auspices of the European Commission, the ATEX Standing Committee, the Notified Bodies Group, the nominated authorities in member countries, trade associations and federations. T A Y L O R N E L S O N S O F R E S - Consulting ______________________________________________________________________________________________ 5. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 2. OBJECTIVES OF THE SURVEY Objectives were clearly stated and confirmed twice during the two steering committees dealing with this matter. They are the following: Get a better/clearer picture of the market for products intended to be used in potentially explosive atmospheres by providing information concerning: n types of products currently available on the market, n competitive features of the market, n manufacturers, n end-users: current and potential, n trade: between E.U. countries and with third countries, n future trends: to understand which sectors, in the foreseeable future, will be in need of these products and concerned by the 94/9/EC European Directive (and their approximate share of the market), Though clearer, the picture of the market will still remain broad: the intention of the survey is not to describe each market segment in details. Results of the survey will be used by the European Commission to help tune regulatory policy. T A Y L O R N E L S O N S O F R E S - Consulting ______________________________________________________________________________________________ 6. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 3. SCOPE OF THE SURVEY The following products are described in the present report: n n n n Electrical motors: − Fractional horse power motors (below 1 horse power – 0.75 Kw), − Integral horse power motor (low, medium and high voltage). Lighting: all kinds Instruments: − Displays & indicators, − Sensors, − Fieldbus, − Electrical barriers, − Converters and transmitters, − Power supply. Power distribution equipment: − Junction boxes & terminal boxes & relays, − Control cabinets, − Push buttons & switches, − Cable glands and enclosures. T A Y L O R N E L S O N S O F R E S - Consulting ______________________________________________________________________________________________ 7. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) n n Protective systems: − Flame arresters, − Water trough barriers & Extinguishing barriers, − Explosion relief systems (using bursting discs, vent panels, explosion doors, etc ...). Mechanical products: − Pumps and compressors, − Handling and lifting equipments, − Gears, − Fans & cooling systems. T A Y L O R N E L S O N S O F R E S - Consulting ______________________________________________________________________________________________ 8. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 4. METHODOLOGICAL APPROACH Following discussion at the first dedicated steering committee, it has been agreed that interviewing suppliers/manufacturers should constitute the backbone of the methodology. This so called “manufacturers approach”was chosen for the following reasons: n They are chiefly concerned by the 94/9/EC Directive, n They have a global perception of the market (demand and supply sides), n n They are best likely to have an opinion on the new sectors which will soon request products designed to be used in potentially explosive atmospheres, They have a good knowledge of the various existing standards, labels and certifications. The major manufacturers of each sector were interviewed, either by direct contact or by fax or by telephone. The list of all manufacturers contacted is presented in annexe 1: list of all manufacturers. The evaluation of E.U. market of each segment of product corresponds to the market of the first buyer. The product can be either used in European countries or for example re-exportated towards Middle-East or Asian countries. During meetings with manufacturers, OEM(1) and end-users, their turnover and market estimates for 1998 were discussed. This is the reason why TN SOFRES Consulting presents in this report some market estimates for 1998. For reason of homogenisation, every market estimates are given in Euros (the average foreign exchange rates of August 1999 were used). (1) OEM: Original Equipment Manufacturer T A Y L O R N E L S O N S O F R E S - Consulting ______________________________________________________________________________________________ 9. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 5. QUALITATIVE ANALYSIS 5.1. STRUCTURE OF THE ATEX MARKET This section presents a general analysis of the market concerning the products covered by the 94/9/EC directive. The remarks, which are specific to a segment of products, are introduced in the corresponding sections. According to most of the manufacturers that have been interviewed “Each Company is a leader on its market” and confidentiality is the rule. First of all, and for every segment of products used in potentially explosive atmospheres, the number of actors on the European market is rather small. Each manufacturer is specialised in a few products, which represent a niche market with few competitors. Only a couple of manufacturers have a wide range of products, which allow them to cover a large part of the market of products used in potentially explosive atmospheres. One consequence of the small number of competitors in this market is the confidentiality that a lot of companies practise. It should be noted that there is no official statistics on the Ex market. The market evaluation of each segment of product represents strategic information to them. A lot of companies refuse to participate in a market study such as the one we conducted, either in giving their own turnover for Ex activity or in comparing our estimations of each market segment to theirs. Some groups are established in all the countries concerned by the study. These include for instance STAHL and COOPER CEAG for both Power Distribution Equipment and Instruments ; MTL, PEPPERL & FUCHS, and TURCK for Instruments ; or ABB, FELTEN & GUILLAUME for Motors. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 10. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Certain characteristics of this market allow a number of very small companies which specialise only in Ex products to have a large market share. The European countries can, however, be divided into 2 groups with: n n on the one hand, France, United Kingdom, Germany, Finland (with ABB for Motors) and Italy, whose markets are mostly dominated by national players, on the other hand, the rest of Europe, with small national companies where German, British, Swedish and French international groups are also very well established. The number of competitors depends on the segment of product studied. Indeed, the motors market is divided between a large number of manufacturers where the biggest, controls only a small share of the market. The price is one of the most important factors of difference between manufacturers of motors. Therefore, the production of some parts may have been relocated to countries with lower labour costs. The situation is different for the other segments of products used in potentially explosive atmospheres, where each manufacturer tends to have greater specialisation in a particular product for specific applications. Furthermore, the number of competitors is smaller. These products, such as Power Distribution Equipment, Instruments, and Protective Systems, are manufactured in the European Union for internal sales and for export outside Europe. The more the product is technically complex to be properly installed (for instance protective systems), the more added services are sold with the product (such as engineering, for example). The protective systems segment is distinct because a reasonable amount engineering studies are sold with these products by manufacturers. The services added to the selling of goods may represent a significative part of the turnover of the player in this market. The Ex market is very stringent, and it is difficult for a new player to enter - indeed, one of the most important criteria of selection is the safety of the product : compliance to safety standards is certified by a notified body, but clients also request good references and experience. Customer need confidence. All this contributes to limit the entrance of new players. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 11. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The homogenisation of the protective standards concerning specific products, the opening of some markets and the internationalisation of competition between manufacturers force companies to merge (for example COOPER and CEAG) or to develop partnerships if they want to keep their position on the market. One consequence of this new tendency is a decrease in the number of players in each segment of products. The partnerships between companies allow them to offer global services to their clients in a greater number of countries. A part of all products intended to be used in potentially explosive atmospheres produced into Europe are re-exported to Non-European countries, such as, for example, towards the Middle East and Asia for Oil & Gas applications. These products may be re-exported after being integrated into a bigger finished product. As far as technical innovations are concerned, the part of product protected based on intrinsic safety increases with time. However, some sectors usually protect mainly by the use of enclosures (as is the case in the Oil & Gas sector) and are not as ready as other sectors to abandon the enclosure protection for intrinsic safety wherever possible, unless specific guarantees are brought. EX represents a technological niche but there are competition between modes of protection. The development of one protective mode instead an other is more a marketing question or behaviour of end-users than a technical issue, although the motivation is technical. For example, as one manufacturer of pressure sensors protected by intrinsic safety told us, "Oil & Gas companies request that this kind of sensor could resist a worker walking on it". Companies, which have a part or all of their activity in mining, have already developed products for other markets as the demand in Europe is decreasing with time. The merging of the protective standards on mining and on surface procedures in the same directive is welcomed by all those concerned, and this measure should help them to widen their activity to other kinds of end-user sector more easily. Some manufacturers, especially in mechanical products, do not feel yet concerned by the 94/9/EC directive. They estimate that their products do not represent a safety risk. For example, some gear manufacturers consider that “their products could not be the source of an explosion as gears are filled with oil, which avoid sparks and hot spots ”. Moreover, the useful life of gears is longer than that of motors, and these manufacturers link the risk of explosion to the electrical parts and not to the mechanical parts. Some manufacturers of mechanical products do not consider that their products could affect the safety of other products working with. It is clear that an information has to be brought in this respect. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 12. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 5.1.1. Distribution schemes of products intended to be used in potentially explosive atmospheres The majority of the products, especially motors, gears, fans and pumps, are not sold directly to end-user clients but to OEMs (Original Equipment Manufacturers), which assemble the different parts. One of the consequences of this structure of the industry is a significative lack of awareness of manufacturers with regard to the needs of the final market and to the requirements of their endusers. The distribution schemes for Ex products are different, and many differences exist such as direct selling or through a wellestablished distributor in the country. The scheme depends more particularly on the structure of the company. On one hand, if the product used in potentially explosive atmospheres represents only a small part of the company turnover, it will be distributed in a complementary way as all the other products of the company. On the other hand, if the company specialises in Ex products, many different schemes of distribution may be used. Oil & Gas and Chemicals industries represent the major end-user sectors for Ex products. These sectors are composed of a large number of international groups, which bring together the greater part of the activity of these two sectors. All these international groups have developed partnerships with a small number of goods suppliers, who must be able to deliver their goods everywhere their clients are present. Contracts that last several years are signed between clients and suppliers ; and of course, almost only international suppliers can sign the appropriate kind of contracts. In consequence, a large part of the market is not available to small suppliers. The structure of the turnover of companies is different from one to another and depends on the amount of engineering services they provide to their clients. For some of them, the turnover is only based on the selling of goods, while for others some engineering and added services can represent the main part of their turnover. The number of suppliers is very different from one segment to another. For instance, for power distribution equipment and instrument products, the number of suppliers is very small, as each supplier specialises in few specific products. Moreover, not every supplier is present in every country of the European Union, which decreases again the number of eventual suppliers/distributors in each country. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 13. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 5.1.2. Exports and imports between the Europe Union and the main areas of the world For more quantitative figures about export and import of mechanical products, see the corresponding section in the present report. Motor manufacturers have already begun to relocate a part of their production units to countries with lower labour costs. This development is less significant for EX electrical products, which are still mainly manufactured in Western Europe. The flow of imports and exports is mainly between E.U. members rather than between the E.U. and the rest of the world. The European countries can be divided in two groups : on the one hand there are Germany, the United Kingdom, France, and Italy, with very well-established national manufacturers which export into the rest of Europe and beyond ; on the other hand, there is the rest of Europe, which sells their products mainly inside the European Union. As far as the export of Power Distribution Equipment and Instruments from the European Union is concerned, it has been noted that the German, Italian, and French markets export especially to Europe and less into the rest of the world. Their exports within Europe are more than double their exports outside Europe, in percentage for a same volume of production. The exception is in the United Kingdom, where the focus is on the opposite scheme : more exports outside Europe than within. One reason of this exception is probably to be related to the fact that the British within the old approach were applying the same concept as set in the new approach as far as the verification of Quality System is concerned and were therefore nearer to the North American practice than the other E.U. partners. Although it may represents an effort and therefore a cost, these partners will benefit of the same situation. It is necessary to make some remarks concerning the export of products manufactured in countries with lower labour costs towards the European Union. Usually, the main European manufacturers which have bought subsidiary companies in Eastern countries to manufacture some of their products include their turnover in their own figures. Therefore, the turnover of these subsidiaries is counted in the turnover of their holding companies, and in consequence the stream of some specific parts of products between these countries and the European Union does not appear clearly, because during meetings with manufacturers, it was difficult to split their turnover between the different locations. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 14. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The competitiveness of European manufacturers may depends on the regulations on installation imposed indirectly on products used in potentially explosive atmospheres. Indeed, the standards concerning the definition and the obligations are different between the European Union and North America (although accepting recently the European zoning concept) and also the related regulation within the zone. For example, in zone 2, the certification is not mandatory in the European Union but it is recommended ; which is entirely different from the United States of America, where every product installed in zones 0, 1 and 2 has to be certified by a notified body. In consequence, some European clients may buy American products to equip their zones 2 more readily than European ones because the product may fulfilled already all the requirements of the directive. For the zone 2, the constraint is coming from American standards as the European market is open and not the American one, in this case the competitiveness seems to lie on the European side. Moreover, American manufacturers have to adapt their products to sell them in European zones 0 or 1 which affects their competitiveness. In turn, European manufacturers meet similar constraints to sell in American Div I and Div II. But the fact they have to develop better control of their production due to the implementation of the 94/9/EC Directive tends to put them in better position to export to USA. Of course this represents an effort of adaptation that has a cost which cannot be underestimated. As the products used in potentially explosive atmospheres are very specific, they are mainly still manufactured in the European Union and very few can be manufactured in Asian countries. The flow of imports of Ex products from Asia into the European Union is negligible. On the contrary, European Union manufacturers export Ex products to Asian countries where European standards are accepted without too much problems for the time being. One can note also that the Asian countries tends slowly but surely to accept ATEX product on the following basis: a kind of type test assessment in conjunction with a procedure consisting in a continuous assessment of the Quality System of the manufacturers plus a product testing in the course of the production or at the delivery point. This is already applied to very current product like normal lighting. One may reasonably think that these requirements will be requested on to ATEX product. The 94/9/EC Directive appears therefore as a good step in this direction but the Directive has no requirement as far as sampling and testing of product are concerned. North America represents the main competitor to the European Union for zone 2 and outside E.U. : North America, Australia and Canada can be good technical competitors to European manufacturers but their standards are different. However, the American standards for products used in potentially explosive atmospheres are different from those in force in Europe. But one can T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 15. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) note that should change very soon with the fact that Canada and Australia are moving to IEC standards which are very close to European Standards. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 16. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Comparison of the acceptance of the different international standards Standards Europe USA Canada South America Asia Australia IEC + /- +/- + + + + UL - + - + /- + - EN + - - +/ - + - Source: Notified bodies T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 17. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 5.2. POSITION OF THE ACTORS ON THE 94/9/EC DIRECTIVE 5.2.1. Opinion on the 94/9/EC directive The opinions concerning the application of the 94/9/EC directive expressed by the people interviewed (either manufacturers, professional associations or end-user clients) differ, and are sometimes contradictory. The degree of awareness of the 94/9/EC Directive seems to vary between the people interviewed. The manufacturers, who are already concerned by the Ex certification, are more informed than those who are not directly concerned, such as the manufacturers of mechanical products. The degree of awareness appears to increase with the size of the company and the number of countries covered or with the specialisation of the company. These remarks are also valid for professional associations, where the biggest manufacturers have people who are responsible for legislative questions. The professional associations represent the companies’ main source of information on the new legislation. Among the different profiles of the people interviewed, some of them mixed the different directives (CEM, ATEX, machinery directive, … ). Moreover, all their efforts are directed towards the fulfilment of the requirements set by the most forthcoming directives. As the 94/9/EC directive will be mandatory “only”in July 2003, this represents (according to some manufacturers) a great deal of time to adapt their products. Surprisingly enough very little have mentioned the necessary adaptation of their quality system. From the technical point of view, the 94/9/EC directive covers only certain products, and their specific use in potentially explosive atmospheres. However, the technical limitations of the 94/9/EC Directive are not obvious to every manufacturer. It is important therefore for them to be able to present their problems to a technical group, which will inform them whether their products and applications are covered by the new directive or not. One should note that the notified bodies are able to answer their questions and the European Commission is launching soon an ATEX guide. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 18. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The majority of manufacturers have started to develop their new products in agreement with the 94/9/EC directive. However, concerning the products which are already being developed in agreement with the current legislation, the manufacturers will not adapt all their products to the new directive and consequently, they will stop selling the oldest products on a technical or marketing point of view after July 2003. The 94/9/EC Directive has repercussions on the development planning of existing products and new products. The structure of the market for products used in potentially explosive atmospheres is different in each of the E.U. countries. Indeed, the installation behaviours have some impact on the types of protection used. For example, motors protected (by enclosures) are proportionally less important in Germany than in France. Germany uses more low voltage motors in proportion to the other countries of the European Union. The specific habits of each country will not disappear with the new European 94/9/EC Directive. The new approach requests a product certification and a verification of the quality system of manufacturers which are European or not, if they have chosen annex IV or VII. These requirements are going generally in the way of the expectations of the international market. In conclusion, the application of the 94/9/EC directive may help the exportation of European products. According to some manufacturers “The 94/9/EC Directive is seen as a means of limiting the entrance of new players into this specialised market”. Of totally opposite views have been heard. Moreover, according to the same manufacturers, some actors would have to stop selling products used in potentially explosive atmospheres after July 2003 (date of the application of the 94/9/EC Directive and cancellation of old approach Directives) as the cost of updating their products will be far too expensive in comparison with the limited extent of their activity in this market. Small companies may have surprisingly different views on the topic although some of them freely recognised they fear the necessary adaptation or creation of their quality system. The Directive is seen by some manufacturers and end-users as a means of “cleaning up” the sector by removing the weakest actors. According to some manufacturers interviewed, the “high cost of certification will be another means of reducing the number of competitors” although they consider that the additional cost for them to fulfil the requirements of the Directive will not be so high as they have already a quality system quite in line with the type of safety product they are producing already. It is the responsibility of users to define the different zones of potentially explosive atmosphere (zones 0, 1, 2). The price of a product depends on the kind of zone in which it will be used. The products used in zone 0 are more expensive than those employed in zone 1 which are generally more expensive than those in zone 2. In consequence, the users try to decrease the size of each zone in order to save money. However, many users interviewed were not sufficiently informed of the specificity of each zone to be able to decrease them as they would like. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 19. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Sometimes, users have bigger zones than necessary as they have some times insufficient information on the real risk on the site or more often to simplify the problems of maintenance. Directive 94/9/EC is already causing some confusion among the users of hazardous area equipment. An educational campaign is therefore required and would be well accepted. Many users expect that the removal of older products (old approach) from the European market after 2003 will cause problems for many users who wish to extend their existing systems. The 94/9/EC Directive will incite some manufacturers to discontinue several products where the demand is low, since they will not be able to justify the costs of redesigning and re-certifying these products. According to some manufacturers “This situation will inevitably lead to reduced profits and generate job losses”. Where some companies compete with foreign companies, Directive is considered to adds significantly to their costs but it should be noted that the Directive applies to non E.U. companies as well. Nonetheless some manufacturers consider that within the E.U. prices would probably rise significantly, but this should be the same for all countries. In order to be competitive with E.U. exports, some companies feel that “they would need to outsource components outside the E.U.”. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 20. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 5.2.2. Certification of products According to the 94/9/EC directive, a product can be certified by any of the notified bodies. However, some end-users continue asking for instance for a PTB certificate (one of the best-known German notified bodies). A PTB certificate appears to be almost mandatory to sell a product able to work in potentially explosive atmospheres in Germany. But this type of behaviour may be found in other country belonging to the E.U. Even if all notified bodies are equivalent from the point of view of validity of certification, there is some competition between the notified bodies of different countries. “The additional cost of transport (of technicians and products to be tested) required in order to obtain a certificate from the notified body of another country may be too expensive for a local manufacturer”, as reported. The application of the 94/9/EC Directive is effective in a given country only when the text of the directive has been “transposed" into the national law. Not every country of the European Union had the same level of progress. The delay in some countries (for example Italy, Belgium, … ) could have penalised some manufacturers, who had planned earlier sales of ATEX certified products. This indicate that the notify bodies from the other countries are not used enough. One of the main differences between the old and the new approach is the verification of the quality system for the production of products used in potentially explosive atmospheres. A lot of manufacturers are already quality certified according to the ISO 9000 requirements, and some manufacturers see “the quality insurance required by the 94/9/EC directive as a new administrative task that will need a great deal of extra work”. This quality insurance requires by the new approach must be a means for manufacturers to improve the quality of their production. Moreover, the quality insurance of the production process is an asset to sell products in the North American market as it is asked the same kind of quality insurance. However other alternatives of the Directive can be used instead of the annex IV or VII. Other solutions are available which may better fill to the needs of the manufacturers, in one sense verification of quality system is not compulsory if every product is verified which will be the case for very limited series. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 21. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) For the notified bodies, the new directive is also demanding a large amount of work, and especially as a large number of manufacturers may be certifying their products just before the deadline for the application of the 94/9/EC Directive (July 2003). A lot of manufacturers concerned think that “the great majority of their products will be certified under 94/9/EC very easily, and that the certification is only an administrative task. These actors will not, from a technical point of view, be changing their products”. Most of the manufacturers have developed their new products in line with the 94/9/EC directive, but none of them have been able to ensure that all their products under old approach will be new approach compliant. As some manufacturers have new and old approach products in their catalogues “they are waiting until all their products are ATEX before presenting the 94/9/EC Directive to their clients, as it is important for their clients that their catalogues be homogeneous”. The cost of certification in the U.K. was considered as higher than in competitor countries - in the UK, companies had to provide a licence fee and a surveillance scheme for certified equipment in the old approach, it is true to say that at the moment no other country had a surveillance scheme for certified equipment. The 94/9/EC Directive requires a surveillance scheme, and this should remove some of the disadvantages experienced in the past by the British when compared with their European competitors. Besides this one can note that what could have appeared as a disadvantage was good when considering the results of export of UK, specially in USA. Some users ask questions because for many of the parties involved it is unclear as to who will carry out the evaluation audits and who will propose the necessary steps to be taken to achieve a safe plant: is this the task of a notified body, of the supplier of safety equipment, of inspectors or of the user himself? Furthermore, some companies have the feeling that little practical guidance is given to the user concerning what to do, how to proceed and so forth. Guideline for the new directive is coming at the time we are printing this report. It is considered by some manufacturers that “The total exercise will benefit E.U. and international sales - technically speaking since the standards will force manufacturers to deliver quality products and nothing but quality products”. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 22. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The progress of manufacturers from the interviews in adapting their products to the 94/9/EC directive is reported as follows: n n n n n British manufacturers, for example, are currently working on designing conforming products, some of which will be ready before 2003. They have already opened a dialogue with the notified body, though more frequently actual certificates need to be updated by the notified body. The impact of the new approach will not be identical in every country, especially in United Kingdom which has, in the framework of the old approach, already a quality insurance for the production step. The French manufacturers will be ready in due time. Some of them already have a certain number of their products in conformity with the 94/9/EC directive while others have not even started work on the question. The biggest German manufacturers are ready and will have the entire range of their products certified before 2003. They consider the new certification as compulsory, and will therefore ensure compliance in due time. The smallest manufacturers do not yet have any products of their range in conformity with the directive, and are therefore working on it to avoid being forced out of business. Scandinavian manufacturers are doing really well in that they will be ready for 2003 in the near future. Most of their products are already in conformity with the new directive. The other countries are just starting to establish new certifications, while some others will not start getting new certificates before 2003. In conclusion, most of the European manufacturers believe to be ready in 2003 for the 94/9/EC Directive. Our recommendation is still an effort on communication on the new approach to be sure that will be really effective. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 23. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 5.2.3. Recommendations for future E.U. policy in the ATEX field First of all, the main comments expressed by the people interviewed concern the lack of information on the European directive. The different players of the Ex market feel not to be equal when facing the level of information available, and the European Commission and interested parties (ORGALIME, member states, notified bodies, … ) have to increase communication on the 94/9/EC Directive in order to spread information on the technical limits of the directive and to avoid the mixing of the different existing directives concerning manufactured products. This information is to be made both towards the manufacturers and users. Moreover, in addition to the information on the 94/9/EC Directive, it could be interesting if a group of experts were available to answer manufacturer’s technical questions. Customer awareness is the key : are the aims and the benefits clearly understood? All the issues concerning conformity require professional resources and time, at considerable cost. Smaller manufacturers claim that they are in conformity, but in fact are not. There are very clear advantages for both the end-users and the "genuine" manufacturers, providing false declarations are firmly acted upon. This the role of the member states to organise properly the market surveillance. One can nonetheless expect a better control of the process related to the quality involved in production from the application of annex IV and VII. It seems that in total that 94/9/EC Directive beyond the real problems it may cause to some manufacturers could represent a real opportunity for them to update their entire product designs and literature and to improve in general their manufacturing process. It may also appear as a good step for the acceptance of their products outside Europe. If reasonable put into operations it may also contribute to develop the confidence between the end-users which buy and the manufacturers which produce and sell. Confidence is in fact the key issue. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 24. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6. QUANTITATIVE ANALYSIS 6.1. ELECTRICAL MOTORS 6.1.1. General description of the European motor market (Ex and non-Ex) TYPE OF MOTORS: Motors can be divided in two categories: IHP (Integral Horse Power Motors) and FHP (Fractional Horse Power Motors). IHP MOTORS (1) FHP MOTORS (2) AC Polyphase: 80% AC Singlephase : 5% DC: 15% Total European market revenues 2.7 billion Euros Number of units sold in Europe 4.9 million motors DC: 50% AC Singlephase: 25% AC Polyphase: 50% Unisacsal: 10% Total European market revenues 4.9 billion Euros Number of units sold in Europe 283 million motors Source: TN SOFRES Consulting, Frost & Sullivan (1) Integral Horse Power Motors range from 0.75 kw and above (2) Fractional Horse Power Motors are below 0.75 kw T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 25. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) APPLICATION AND USAGE (PERCENTAGE OF TOTAL REVENUES): FHP motors are not concerned by 94/9/EC directive as the vast majority is not industrially used. When they are, almost none of them is used in a potentially explosive atmosphere. As a result only IHP motors are covered by the present survey. End-use sectors of Ex and non-Ex IHP motors AC motors DC motors Pumps, valves, compressors 31% 10% Heating Ventilation Air Conditioning (HVAC) 14% 3% Mechanical handling 12% 14% Machine tools 10% 11% 6% 10% Process plant 11% 15% Battery driver - 25% Others 16% 12% TOTAL 100% 100% Machine engineering Source: TN SOFRES Consulting, Frost & Sullivan T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 26. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Pumps, and compressors represent the first application of AC IHP motors with 30%. End-use sectors of Ex and non-Ex IHP motors Automotive auxiliaries 30% Domestic appliances 14% Industrial machinery 11% Pumps and compressors 10% Heating Ventilation Air Conditioning (HVAC) 11% Portable tools 7% Office machinery 5% Medical equipment 5% Others 7% TOTAL 100% Source: TN SOFRES Consulting, Frost & Sullivan REVENUES AND MARKET STRUCTURE (EX AND NON-EX IHP MOTORS ONLY): n n n n In 1998, an estimated 5 million units were sold in Europe for total revenues worth (2.7 billion Euros), Sales and revenues decreased sharply over the first four years of the 1990’s. Only moderate growth has been registered since 1995, The overall European market is expected to grow by 2% per annum over the next 5 years (1999-2004), The motor market industry is very price sensitise and face fierce competitors from cheap labour countries. Yet, the bulk of the competitors is on standard, low voltage motors (very mature and low-technology products) as opposed to adapted (customised motors, for which European manufacturers still have a clear quality and know-how competitive advantage). The very notion of European manufacturers is becoming difficult to understand as all major manufacturers are gradually relocating part of or all their industrial facilities in East Europe (acquisition of local companies). T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 27. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) BREAKDOWN BY PRODUCT TYPE FOR EX AND NON-EX MOTORS: In value term, AC polyphase motors (<750 kW) cover 75% of the revenues. This share is higher in number of units with 80%(*). EUROPEAN REVENUS: 2.7 Billion Euros AC Single phase DC motors AC Polyphase (> 750 kw) 15% UNITS: 4.9 Million motors AC Polyphase (> 750 kw) 250 0.05% 5% AC Single phase DC motors 500,000 11% 450,000 9% 5% 75% 3.9 Million 80% AC Polyphase (< 750 kw) AC Polyphase (< 750 kw) Source: TN SOFRES Consulting, Frost & Sullivan, Manufacturers (*) However, when the power of motors increases, the price increases faster. For example with only 0,05% of the total number of IHP motor units, AC polyphase motors (>750 kW) represent more than 5% of the total revenues. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 28. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) BREAKDOWN BY COUNTRY FOR EX AND NON-EX MOTORS: Germany represents the first manufacturer and the first market of the European Union for motors with 41%. TOTAL E.U. REVENUES: 2.7 Billion Euros Benelux Rest of E.U . Scandinavia Iberia (Spain+ Portugal) 5% 5% 6% Germany 7% United Kingdom 11% 41% 12% 13% France Italy Source: TN SOFRES Consulting, Frost & Sullivan, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 29. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) EX AND NON-EX ACTORS: The market is constituted of: n n n A few large European-wide manufacturers, of which the largest (their combined turnover is in excess of 50%) are: − ABB, − SIEMENS, − BTR-SIEBE (Brook Hansen), − LEROY SOMER (EMERSON GROUP), − ALSTOM. A lot of small national manufacturers, often specialised on niche markets (narrow range of products; turnover mostly made in their country of origin). Imports: Main non E.U. manufacturers with European sales officer. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 30. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.1.2. Motors working in hazardous areas The below figures refer to the following motor categories: è è è è d e n de Flameproof Increased safety Non sparking Flame proof with increased safety EX MOTORS: LOW VOLTAGE MOTORS (UP TO 1000 VOLTS) Germany is the first market for Ex Low Voltage motors with 55 Million Euros. TOTAL E.U. SALES FOR 1998: 153 Million Euros 55 23 22 20 12 12 9 Germany U nited Kingdom France Italy Scandinavia Benelux Rest of E.U . Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 31. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) EX MOTORS: MEDIUM & HIGH VOLTAGE MOTORS (OVER 1000 VOLTS) First, as the number of Ex medium and high voltage motors sold every year is low in each country (less than 100 units for the biggest countries), national market could change a lot of from one year to an other. Secondly, as the legislation on low and medium & high voltage motors is different from one country to an other, national markets evaluations are not always based on the same basis. These two reasons explain why Germany has a national market for medium & high voltage motors in the same range as the other main European countries. TOTAL E.U. SALES FOR 1998: 36 Million Euros 8 7 6 6 4 3 2 Germany Italy France United Kingdom Scandinavia Benelux Rest of E.U . Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 32. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) ACTORS: EUROPEAN AND NON-EUROPEAN MANUFACTURERS OF MOTORS FOR HAZARDOUS LOCATION Ex Electrical motors (Low voltage, up to 1000 Volts) GERMANY FRANCE UNITED KINGDOM ITALY REST OF E.U. n ABB n ABB n ABB n ABB n ABB (Finland) n BROOK-HANSEN n ATAV n BROOK-HANSEN n BROOK-HANSEN n EFFACEC (Portugal) n FELTEN & GUILLAUME n BROOK-HANSEN n CEMP n CEMP n LEROY-SOMER n CEB LEROY SOMER n CEN n ELECTROADA n LOHER n CEMP n F&G n FIMM n SIEMENS n CEN n MARELLI n LOHER n F&G n MFTC n MARELLI n LOHER n MORLEY ELECTRICAL n SIEMENS Market estimate: 55 Market estimate: 22 Market estimate: 23 Market estimate: 20 Market estimate: 33 EX E.U. SALES FOR 1998 *(in million Euros): 153 Source: TN SOFRES Consulting, Manufacturers (*) Total sales in Europe: Production + Imports - Exports T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 33. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Ex Electrical motors (Medium and high voltage, over 1000 Volts) GERMANY FRANCE UNITED KINGDOM ITALY n ABB n ABB n ALSTOM n ABB n ALSTOM n ALSTOM n HYUNDAI/PARSONS n ALSTOM n ANSALDO n ANSALDO n LAURENCE SCOTT n ANSALDO n FELTEN & GUILLAUME n CEN n MITONDICHI n LOHER n LOHER n F&G n MARELLI n SIEMENS n LOHER n SIEMENS Market estimate: 8 Market estimate: 6 Market estimate: 6 Market estimate: 7 REST OF E.U. n ABB (Finland) Market estimate: 9 Ex E.U. SALES (*) (in million Euros): 36 Source: TN SOFRES Consulting, Manufacturers (*) Total sales in Europe: Production + Imports - Exports T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 34. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.1.3. Applications and end-usage (Ex low, medium & high voltage motors) PERCENT OF REVENUES BY APPLICATION AND END-USER INDUSTRY Pumps represent the first application of Ex motors with 55%, before fans with 25%. Chemicals and Oil & Gas are the two main sectors using Ex motors. UNITS: 196 Million Euros O ther (Food processing, paper & pulp) Chemicals Fans 5% 25% 40% 55% 55% 8% 12% Pump Compressors O il & Gas O ther (Material handling, mixers) Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 35. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Clearly, pumps and fans are the two mechanical pieces of equipment the most intensely used in hazardous areas: n They account for 80% of all ex motors-powered equipment, n Though mixers and materials handling can be used in hazardous areas, they only account for less than 10%. à The 94/9/EC Directive will mainly impact on pumps and fans users/manufacturers but only on a tiny fraction of the mixers and materials handling business. Dust protection is becoming a growing concern è it is a growing market for Ex motors manufacturers. However, the food processing, wood and paper & pulp industries will remain marginal markets for Ex motors producers. Production and trade flows: n n As shown earlier, each of the four major European countries have their “national champion” which cover a large portion of its country market, Contrary to standard IHP non-Ex motors, which are mature low-tech and easily manufactured products, Ex motors production is confined to a few large European manufacturers. The reasons are the following: n n n Products have to comply with a strict set of “national”installation standards, End-users are risk-averse and prefer buying from well established companies è it is almost impossible for small players to be on the vendors list as a potential main suppliers. Contrary to what is happening with standard motors, most of Ex motors manufacturing facilities have not (yet) be re-localised in cheap labour countries. However, it is likely to become a growing trend in the near future (Poland, Cheque Republic, Hungary, Slovakia, … ). T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 36. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Country % of country market covered by national manufacturers GERMANY 70% UK 90% FRANCE 70% ITALY 60% Rest of E.U. 30% Source: TN SOFRES Consulting, Manufacturers Imports from Asia and America (North and South) are very small and are not a significant competitor feature of the European markets. PERCEPTION OF THE 94/9/EC DIRECTIVE AMONG MANUFACTURERS n n n Most large manufacturers are aware of the directive and have a good practical knowledge of its likely impact on their production process, So far, only one international manufacturer, boasts to be fully “ATEX compliant”. All others claim they are compliant in principle as their products already abide by their existing country safety standards and regulations. In any case, all of them plan to be ready before the deadline. Generally speaking, large manufacturers see the directive rather positively as they think “it will make it even more difficult for “exotic manufacturers”to penetrate this lucrative market”è The directive will help create/reinforce a niche market in Europe hold by a handful of powerful European manufacturers. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 37. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.2. M ECHANICAL PRODUCTS INTENDED TO BE USED IN POTENTIALLY EXPLOSIVE ATMOSPHERE 6.2.1. Pumps and compressors (NACE 29.12) The market for pumps and compressors (NACE 29.12) is constituted mainly by liquid pumps, compressors, vacuum pumps and their parts. The proportions of each of those mechanical products installed in potentially explosive atmospheres are very different. n n As compressors and vacuum pumps are usually not installed in hazardous area ; the percent concerned by the new directive ATEX is very low. On the contrary, in value term, 65% of liquid pumps are used in industrial applications and 35% in private applications (i.e. circulation of water in houses and buildings). The proportion of liquid pumps installed in potentially explosive atmosphere area is much bigger than for compressors and vacuum pumps. By consequences, the following figures concerned only the E.U. market of liquid pumps. E.U. market of pumps (Ex and non-Ex) for 1997 (Million Euros) Production 5 853 Exports 5 332 Imports 2 838 Apparent consumption 3 358 Of which industrial applications 2 183 Source: TN SOFRES Consulting, EUROPUMP T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 38. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Breakdown of the production of Ex and non-Ex pumps for 1997 by country (Million Euros) TOTAL E.U. PRODUCTION FOR 1997: 5 853 Million Euros Italy Rest of E.U . 14% 810 21% 1 232 17% 995 U nited Kingdom 11% 630 37% 2 186 France Germany Source: EUROPUMP T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 39. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Germany is the first exporter of pumps in the European Union. Breakdown of the export of Ex and non-Ex pumps for 1997 by country (Million Euros) TOTAL E.U. EXPORT FOR 1997: 5 332 Million Euros Italy Rest of E.U . U nited Kingdom 11% 577 29% 1 547 14% 763 12% 666 34% 1 779 France Germany Source: EUROPUMP T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 40. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The four main European countries (Germany, France, United Kingdom and Italy) import and export pumps in all the European Union. Breakdown of the imports from E.U. of Ex and non-Ex pumps for 1997 by country (Million Euros) TOTAL E.U. IMPORTS FOR 1997: 2 838 Million Euros Italy U nited Kingdom 9% 245 9% 260 Rest of E.U . 44% 1 265 14% 395 24% 673 France G ermany Source: EUROPUMP T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 41. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Germany is the first market of pumps in the European Union. However, pumps can be integrated in bigger machines to be reexported towards an other country to be used there. Breakdown of Ex and non-Ex pumps apparent consumption for 1997 by country (Million Euros) TOTAL E.U. SALES FOR 1997: 3 358 Million Euros Italy Rest of E.U . 15% 493 U nited Kingdom 28% 948 14% 478 11% 359 32% 1 080 France Germany Source: EUROPUMP Sales = Production + Import - Export T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 42. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Even if the sector of Oil & Gas represents only 16% of all pump applications, this sector uses half of the total pumps able to work in potentially explosive atmospheres. Pumps: breakdown by industrial applications in 1997 % of which used in potentially explosive atmospheres Market share of ATEX pump 7% 10% < 1% Oil & Gas 16% 60 % 10% Chemicals 10% 50% 5% Energy (vapour, power plant… ) 25% 4% 1% Others (paper, steel, … ) 42% 10% 4% 100% - 20% Sector Agro-food industry TOTAL Market share of total pumps Source: EUROPUMP, Pump Manufacturers, TN SOFRES Consulting E.U. Market concerned by the 94/9/EC Directive 436 million Euros About 20% of the industrial pumps are installed in potentially explosive atmosphere areas. The E.U. market of pumps concerned by the 94/9/EC Directive is about 436 million Euros. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 43. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) List of main manufacturers of pumps n ALFA LAVAL n ALTAS COPCO CREPELLE (France) n ANSIVAL (France) n CENTAC n COMPAIR REAWELL n COOPER TURBOCOMPRESSOR (UK) n DEUTSCHE VORTEX n DEUTZ (Germany) n FRIATEC (France) n GRUNDFOS (Denmark) n HIBON INTERNATIONAL (France) n INGERSOLL-RAND n ITT (American manufacturer as the world's biggest pump-maker) n KSB (German group which is Europe's second biggest maker of pumps) n MAN (Germany) n MOUVEX (France) n SIEMENS (Germany) n SULZER TURBO (Switzerland) n WORTHINGTON CREYSSENSAC (France) Source: TN SOFRES Consulting, EUROPUMP, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 44. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.2.2. Handling and lifting equipment (NACE 29.22) The handling and lifting equipment represents the main end-use sector of the mechanical industry in value term in almost every country of Europe, except in United Kingdom where ventilation and air conditioning are the first end-use sectors of the mechanical industry. This segment of products includes, among others: n Manufacture of hand operated or power driven lifting, loading and on loading machinery like pulley tackle, hoist, mechanical manipulators, n Manufacture of conveyors, n Manufacture of lifts. E.U. market of handling and lifting equipment in 1997 (Million Euros) Production 26 595 Exports outside Europe 6 630 Imports from outside Europe 1 880 Apparent consumption 21 845 Source: IFO/VDMA E.U. market of handling and lifting equipments in the scope of this study 8 520 (1) The market of automotive trolley has been excluded from our study. This segment of product represents about 21% of the handling and lifting equipment market. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 45. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) (1) Figures given by VDMA for E.U. market of handling and lifting equipment include engineering services which represent between 30 to 50% of the total. Engineering, services are not concerned by the new directive 94/9/EC and has been excluded from the scope of this study. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 46. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Germany is the European leader for the production of handling and lifting equipments. Breakdown of production of Ex and non-Ex handling and lifting equipment by country TOTAL E.U. PRODUCTION FOR 1997: 26 595 Million Euros Italy Rest of E.U. 8% United Kingdom 17% 16% 17% 42% France Germany Source: FEM, TN SOFRES Consulting T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 47. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Categories Market share % of which used in potentially explosive atmosphere Part of equipments concerned by 94/9/EC Directive Lifting equipment 30% < 1% < 1% Powder handling systems 20% 5% 1% Others 50% 4% 2% TOTAL 100% - 3% Source: FEM, TN SOFRES Consulting, Manufacturers E.U. market concerned by the 94/9/EC directive 256 million Euros The handling and lifting equipment's sector can be divided as followed: n n n 30% of lifting equipment which are mostly not installed in potentially explosive atmosphere areas. 20% of handling systems which can transport powders among different kinds of products. It is mainly pneumatic systems, conveyor bells, mechanical handling. About 5% of these mechanical products could transport dangerous powder and will need to fulfil the directive 94/9/EC requirements. For the 50% remaining, about 4% of them can work in potentially explosive atmosphere areas. In conclusion, the E.U. market of handling and lifting equipment concerned by the 94/9/EC Directive will be about 256 million Euros. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 48. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) List of main manufacturers of Handling and lifting equipment's n ALSTOM n BUHLER (Germany) n CEAC n ETPASS n KIEPE (Germany) n EUROPONT n KRONE n GERICKE (Switzerland) n KVÆRNER PROCESS n LANCER-BOSS (United Kingdom) n LANSING (United Kingdom) n STAHL n LINDE/STILL (Germany) n TUNG HEINRISCH (Germany) n MANNESMAN DEMATIC n VALMET (Finland) n NEUTRANSFERT (France) n VERLINDE n RUD (Germany) n VICTORI n SCHINDLER n ZEPPLIN (Germany) Source: FEM, TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 49. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.2.3. Gears and bearing systems (NACE 29.14) Concerning gears sector, most suppliers manufacture only the gearboxes and buy out the motors necessary to supply geared motors to theirs customers. Only a few manufacturers produce themselves both Motors and Gearboxes. The gears can be divided in six product segments: n Helical Gearboxes n Planetary (Epicyclic) Gearboxes n Worm Gearboxes n Helical Geared Motors n Planetary (Epicyclic) Geared Motors n Worm Geared Motors E.U. market of gears and bearing systems (NACE 29.14) for 1994 (Million Euros) Production 12 019 Exports 7 951 Imports 6 716 Apparent consumption 10 881 Source: IFO/ MBI Among the gears and bearing systems (NACE 29.14), the gearboxes and geared motors market accounts for 3 310 million Euros in 1997. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 50. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Revenue forecasts of total gearboxes and geared motors market in E.U. for the period 1994-2004 Year European Revenues (Million Euros) Revenue Growth Rate 1994 3 230 -- 1995 3 270 0.8 % 1996 3 290 0.7 % 1997 3 310 0.8 % 1998 3 340 1.0 % 1999 3 390 1.4 % 2000 3 450 1.8 % 2001 3 530 2.2 % 2002 3 620 2.7 % 2003 3 730 3.0 % 2004 3 850 3.2 % Source: Frost & Sullivan T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 51. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Germany is the main market in Europe for gearboxes and geared motors. Share of the main E.U. countries for gearboxes and geared motors in 1997 Country Germany United Kingdom Market share in E.U. 46.0 % 8.2 % France 11.1 % Italy 11.8 % Spain 3.5 % Scandinavia 7.5 % Benelux 5.8 % Rest of E.U 6.1 % Total 100% Source: Frost & Sullivan T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 52. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Application market share by revenues for total gearboxes and geared motors marketin E.U. in 1997 Application Market share % of which used in potentially explosive atmosphere Percentage of gears working in potentially explosive atmospheres Mechanical Handling 27.9 % 3% 1% Foodstuffs 14.8 % 6% 1% Metals Production 8.8 % 10% 1% Rubber and Plastics 8.7 % 0 0% Paper, Printing and Textiles 8.4 % 0 0% Mobile Equipment 5.2 % - - (1) Pumps, Valves and Mixers 4.7 % 20% <1% Mining and Tunnelling 4.6 % 65% 3% Marine 3.1 % - - (1) Others 13.8 % 6% <1% TOTAL 100 % -- 8% Source: Frost & Sullivan (1) Mobile equipment is out of the scope of the present study Even if the sector of mining and tunnelling represents only 4.6% of all revenues of gearboxes and geared motors, this segment covers more than a third of the gears able to work in hazardous areas. About 8% of the total E.U. market of gearboxes and geared motors will be concerned by the 94/9/EC Directive which will represent about 265 million Euros. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 53. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Some manufacturers, especially in mechanical products, do not feel concerned by the 94/9/EC directive. They estimate that their products do not represent a safety risk. For example, some gear manufacturers consider that “their products could not be the source of an explosion as gears are filled with oil, which avoid sparks and hot spots. Moreover, the useful life of gears is longer than that of motors, and these manufacturers link the risk of explosion to the electrical parts and not to the mechanical parts”. For the United Kingdom, the total gearboxes and geared motors market for the period 1994-2004 is presented in the table below: Year UK Revenues (Million Euros) Revenue Growth Rate 1994 265 -- 1995 267 0.5 % 1996 269 0.8 % 1997 272 1.0 % 1998 274 1.3 % 1999 279 1.4 % 2000 283 1.6 % 2001 289 2.0 % 2002 296 2.3 % 2003 304 2.6 % 2004 312 2.9 % Source: Frost & Sullivan The power transmission engineering equipment is a segment of the gears and bearing systems, which is concerned by the new directive 94/9/EC. Power transmission engineering represents about 50% of the whole power transmission activity. Some figures on this segment are presented hereafter. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 54. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The five main E.U. countries export more than 51% of all power transmission engineering in the world. Export of power transmission engineering by major supplying countries, 1997 Country Share (%) Germany 24 % Italy 7.9 % France 8.3 % Great Britain 6.4 % Belgium / Luxembourg 4.5 % TOTAL EUROPE Japan 51.1% 20.7 % USA 11 % Other 17.2 % Total 100 % Source: VDMA, Power Transmission Engineering Report Country Belgium Germany Power Transmission Engineering Production 97 (Million Euros) 260 3 920 France 530 UK 941 Italy 2 340 EUROPE 8 580 Source: VDMA, EUROTRANS T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 55. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) List of main manufacturers of gears and bearing systems n AB BENZLERS (Sweden) n ALLEN GEARS (UK) n BAUER n BONFIGLIOLI RIDUTTORI (Italy) n BREVENI RIDUTTORI (Italy) n BROOK HANSEN (UK) n BROWN PESTELL n CMD (France) n DAVID BROWN GROUP (UK) n FLENDER n HASEN / STEPHAN n NORD n OPPERMAN MASTERGEAR n RENOLD n SEW (Germany) n SIMPATROLL n SOM (Italy) n SUMITOMO Source: FEM, TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 56. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.2.4. Non-domestic cooling and ventilation (NACE 29.23) The non-domestic cooling and ventilation segment includes more than only fans, these segment includes also machines for: n Air conditioning in non-domestic applications, n Dust control and gas cleaning, n Industrial refrigerating equipment and exchangers, n Dryers, n Surface treatment, n And spare parts. Fans are used in the previous end-use sectors where they are integrated with other products in bigger equipments. E.U. market of non-domestic cooling and ventilation (Ex and non-Ex) for 1994 (Million Euros) Production 14 733 Exports 7 656 Imports 6 471 Apparent consumption 13 580 Source: IFO/MBI E.U. market of non-domestic cooling and ventilation in the scope of this study 9 500 million Euros (1) (1) Figures given by IFO/MBI for E.U. market of non-domestic cooling and ventilation include engineering services which represent between 20 to 40% of the total. Engineering services are not covered by the new directive 94/9/EC and has been excluded from the scope of this study. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 57. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Total market share % of which used in potentially explosive atmosphere Air conditioning 33% 5% 2% Dust control and gas cleaning 10% 20% 2% Industrial refrigeration equipments 22% 0 0% Drying equipments 8% 10% 1% Surface treatment 13% 30% 4% Others 14% 5% < 1% TOTAL 100% - End-use sectors % of products working in potentially explosive atmospheres 9% Source: UNICLIMA, VDMA, Manufacturers, TN SOFRES Consulting E.U. Market of non domestic cooling and ventilation concerned by the 94/9/EC directive 856 million Euros The part of the E.U. market of non-domestic and ventilation concerned by the 94/9/EC Directive is about 856 million Euros. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 58. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) List of main manufacturers of non-domestic cooling and ventilation n ABB Energy n Balcke-Durr (Germany) n CARRIER (France) n Deutsche Babcode n Elfi (Italy) n EMaC (UK) n FLS MILJØ n Linde n Mattexs and pates n SAME (Specialised Air Movement Equipment) (UK) n Tetra Laval (Sweden) n Woods (UK) Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 59. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.3. LIGHTING The Ex European lighting market can be divided into 6 main ranges of products: n Fluorescents, n Floodlights, n Bulkhead light fillings, n Handlamps, n Pendants, n Tank inspections. However, the fluorescents products represent the most important segment of the Ex lighting market. The Ex Scandinavian market is significant in comparison with the economic weight of this region in Europe. The Oil & Gas industry are really well developed there and that is the reason why the lighting market is so established there. Their good position on the lighting market allows them to export these goods too, mostly in Europe. Users define the zones, where specific products used in potentially explosive atmosphere are needed. However, the installation behaviours are not identical in every E.U. member. For example for Ex lighting, there are more zones 2 in United Kingdom than in other European countries. As lighting products used in zones 2 are cheaper that ones in zone 1, the market of United Kingdom for lighting is smaller, in value term, in comparison with other segments of products covered by this study. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 60. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) E.U. market of Ex lighting in 1998 (Million Euros) TOTAL E.U. SALES FOR 1998: 94 Million Euros 25 16,5 16 14 11 7 4,5 Germany U nited Kingdom France Italy Benelux Spain Rest of E.U . Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 61. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Ex Lighting manufacturers GERMANY FRANCE UNITED KINGDOM ITALY REST OF E.U. n CEAG n CEAG n CEAG n AD VIGAND/FONDI SANZO n GLAMOX (Norway) n CHALMIT n DTS n CHALMIT n CEAG n TECHNOR (Norway) n DTS n GLAMOX n DTS n CORTEM n LEGRAND n LEGRAND n LEGRAND n DTS n MAELKER & KAGE n SCHUCH n n ITALSMEA n SCHUCH n STAHL n LEGRAND n NUOVA Asp – FEAM n SCHUCH n STAHL n STAHL Market estimate: 25 n VICTOR Market estimate: 14 PFP ELECTRICAL PRODUCTS n STAHL n VICTOR Market estimate: 16 Market estimate: 11 Market estimate: 28 EX E.U. SALES FOR 1998 (*) (in million Euros): 94 Source: TN SOFRES Consulting, Manufacturers (*) Total sales in Europe: Production + Imports - Exports T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 62. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.4. PROTECTIVE SYSTEMS The Protective Systems market is more complex as it is not affected by any previous Ex directive. Protective systems can be segmented into 3 main categories: n Flame arresters, n Water through barriers and extinguishing barriers, n Explosion relief systems (using bursting discs, vent panels, explosion doors, etc … ), n Others. The Protective Systems market is held in very few manufacturers where the sales of product is often combined with engineering services added. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 63. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The European market of protective systems is well balanced between main E.U. countries and the rest of Europe. E.U. market of protective systems in 1998 (Million Euros) TOTAL E.U. SALES FOR 1998: 15 Million Euros 4 4 3,5 2,5 1 Germany U nited Kingdom France Italy Rest of E.U . Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 64. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Protective systems GERMANY FRANCE UNITED KINGDOM ITALY REST OF E.U. n FIKE n FIKE n BRUSH TRANSFORMERS n FIKE n FIKE Europe n KIDDE DOIGRA n KIDDE n EXPO n KIDDE n STUVEX n TOTAL WALTHER n STUVEX n FIKE n STUVEX / ISMA n KIDDE/INCOM (Switzerland) n KIDDE n NEWSON GALE n STUVEX Market estimate: 4 Market estimate: 2.5 Market estimate: 3.5 n Market estimate: 1 HOERBIGER VENTILWERKE (Austria) Market estimate: 4 EX E.U. SALES FOR 1998 (*) (in million Euros): 15 Source: TN SOFRES Consulting, Manufacturers (*) Total sales in Europe: Production + Imports - Exports T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 65. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.5. INSTRUMENTS The Ex instruments market can be divided into 6 main segments: n Displays and indicators, n Sensors, n Fieldbus n Electrical barriers, n Convectors and transmitters, n Others It has been noticed that the instruments for gas detection account for a major part of all of the instruments which are used in hazardous areas. The major part of instruments is protected by intrinsic safety (ia or ib). Some industrials who were interviewed are located on the two segments, that is to say that they sell their products as Power Distribution equipment while they have been included into Instruments manufacturers, because they have very close applications. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 66. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Germany represents the first European market for Ex instruments. E.U. market of Ex instruments in 1998 (Million Euros) TOTAL E.U. SALES FOR 1998: 348 Million Euros 126 69 60 52 41 Germany U nited Kingdom Italy France Rest of E.U . Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 67. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Ex Instruments GERMANY FRANCE UNITED KINGDOM ITALY REST OF E.U. n ABB n A PUISSANCE 3 n ABB n ABB n MTL n BARTEC n ABB n COOPER CEAG n COOPER CEAG n STAHL n COOPER CEAG n BARTEC n CROWCON n ELCON n COOPER CEAG n DRAEGER n BEKA n DAVID DERBY n MTL n TURCK n ENDRESS HAUSER n COOPER CEAG n DRAEGER n PEPPERL & FUCHS n ZELLWEGER (Switzerland) n EXTEC n DRAEGER n MEGGITT MOBREY n STAHL n HARTMANN & BROWN n GEORGIN n MTL n TURCK n IBS SCHILLING n IFM n PEPPERL & FUCHS n IFM n MTL n STAHL n MTL n PEPPERL & FUCHS n TURCK n PEPPERL & FUCHS n STAHL n ZELLWEGER n STAHL n TURCK n TRION n TURCK n VEGA n ZELLWEGER Market estimate: 126 Market estimate: 41 Market estimate: 69 Market estimate: 52 Market estimate: 60 EX E.U. SALES FOR 1998 (*) (in million Euros): 348 Source: TN SOFRES Consulting, Manufacturers (*) Total sales in Europe: Production + Imports - Exports T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 68. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) 6.6. POWER DISTRIBUTION EQUIPMENT The Ex Power Distribution Equipment market can be segmented into 5 main categories of products: n Junction boxes, terminal boxes and relays, n Control cabinets, n Push buttons and switches, n Cable glands and enclosures, n Others. It has to be known that we are dealing with a niche market, that is to say that each industrial specialises in its niche market with very few direct competitors. Their view of the market can only be based on their own products and as a result to this, they have a narrow evaluation of the whole market. T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 69. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Germany is the first European market for Ex power distribution equipment. E.U. market of Ex power distribution equipment in 1998 (Million Euros) TOTAL EX E.U. SALES FOR 1998: 214 Million Euros 78 43 41 27 Germany U nited Kingdom France 25 Italy Rest of E.U . Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 70. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Ex Power distribution equipment GERMANY FRANCE UNITED KINGDOM ITALY REST OF E.U. n ABB n ABB n ABB n ABB n APLEI n BARTEC n BARTEC n AEI CABLES n AD VIGANO n RAEFOSS n BERNSTEIN n CAPRI n AMOT CONTROLS n COOPER CEAG n TECHNOR n COOPER CEAG n COOPER CEAG n BICC n CORTEM n TRANBERG n FANAL n LEGRAND n BRUSH TRANSFORMERS n ITALSMEA n HARTMANN & BROWN n n CMP n LEGRAND n HUMMEL n COOPER CEAG n NUOVA ASP n FEEL n STAHL n HAWKE n LAPP PHOENIX MECANO / ROSE n STAHL n TECHNOR ATEX n LEGRAND n ROSE n LEGRAND n STAHL n PEPPERS n STAHL n WALSALL EX Market estimate: 78 Market estimate: 27 Market estimate: 41 Market estimate: 25 Market estimate: 43 EX E.U. SALES 1998 (*) (in million Euros): 214 Source: TN SOFRES Consulting, Manufacturers (*) Total sales in Europe: Production + Imports - Exports T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 71. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) ANNEXES T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 72. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) ANNEX 1 : LIST OF ALL MANUFACTURERS Companies Motors Lighting Protective systems u u AD VIGANO u u AEI CABLES ALSTOM u u AMOT CONTROLS u APLEI ATAV u u u ATHEX BVBA u u u BARTEC u u u BICC COMPONENTS BROOK HANSEN Power distribution equipment u A PUISSANCE 3 ABB Instruments u u BRUSH TRANSFORMERS C.E.B. u C.E.N. u u Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 73. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Companies Motors Lighting Instruments Protective systems u CAPRI CEMP Power distribution equipment u u CHALMIT u CMP COOPER CEAG u u CORTEM u u CROWCON u DAVID DERBY u DRAEGER u u DTS EEV u ELCON u u ENDRESS HAUSER u u EUROMOTORI u u EXPO F.E.E.L. u FANAL u FELTEN&GUILLAUME u u FIKE u GEORGIN GLAMOX u Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 74. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Companies Motors Lighting Instruments Protective systems u HARTMANN&BROWN u HAWKE CABLE GLANDS u HOERBIGER VENTILWERKE u HUMMEL u ITALSMEA u u KIDDE u LAPP u LEGRAND LOHER Power distribution equipment u u u MAEHLER&KAEGE u MEGGITT MOBREY u MOOG CONTROLS MORLEY ELECTRICAL u MPTC ELEKTROTECHNIK u u MTL u NEWSON GALE u NORCON NORRIS NUOVA ASP u u P.F.P. ELECTRICAL PRODUCTS u u PEPPERL&FUCHS u PEPPERS u Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 75. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Companies Motors Lighting Instruments Protective systems Power distribution equipment RAEFOSS u RITTAL u ROSE/PHOENIX MECANO u u SCHUCH u SERVONEX SIEMENS STAHL u u u u STUVEX TECHNOR u u u u TECHNOR ATEX u TECHNOR ISIS THERMON u TRANBERG u u TURCK TYCO VALVES u UPTECH u VICTOR u WALSALL EX u WEIDMULLER u ZELLWEGER u Source: TN SOFRES Consulting, Manufacturers T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 76. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) ANNEX 2 : MAIN TRADE FLOWS OF EX AND NON-EX MECHANICAL PRODUCTS T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 77. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The most important trade flows intra-E.U. members and with third countries, in million Euros, are presented hereafter for: n Pumps and compressors (NACE 29.12), n Handling and lifting equipment (NACE 29.22), n Gears and bearing (NACE 29.14), n Non-domestic cooling and ventilation (NACE 29.23). T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 78. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) Pumps and compressors are one of the main segment of mechanical products in value terms. Imports are important (more than 1000 Million Euros) between Europe and North America or with Asia. Eastern countries exports mainly because many European manufactures have relocated their production there. The most important trade flows intra-E.U. members and with third countries for Ex and non-Ex pumps and compressors in 1997 (NACE 29.12) Source: TN SOFRES Consulting – EUROSTAT North America Asia European Union Eastern Europe (Million Euro) More than 1000 Between 500 and 1000 Between 250 and 500 Between 100 and 250 Between 50 and 100 Between 20 and 50 Less than 20 T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 79. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The exports of handling and lifting equipments are less important than for other mechanical products but are well balanced between North America, Asia and E.U. countries. The most important trade flows intra-E.U. members and with third countries for Ex and non-Ex handling and lifting equipment in 1997 (NACE 29.22) Source: TN SOFRES Consulting – EUROSTAT North America Asia European Union Eastern Europe (Million Euro) More than 1000 Between 500 and 1000 Between 250 and 500 Between 100 and 250 Between 50 and 100 Between 20 and 50 Less than 20 T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 80. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The main trade flows of gears and bearing systems are between North America and European Union countries. The most important trade flows intra-E.U. members and with third countries for Ex and non-Ex gears and bearing systems in 1997 (NACE 29.14) Source: TN SOFRES Consulting – EUROSTAT North America Asia European Union Eastern Europe (Million Euro) More than 1000 Between 500 and 1000 Between 250 and 500 Between 100 and 250 Between 50 and 100 Between 20 and 50 Less than 20 T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 81. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999) The European Union exports more than 1000 million Euros of non-domestic & ventilation products in Asia, which represent the main trade flow for this category of product. The most important trade flows intra-E.U. members and with third countries for Ex and non-Ex non-domestic cooling and ventilation in 1997 (NACE 29.23) Source: TN SOFRES Consulting – EUROSTAT North America Asia European Union Eastern Europe (Million Euro) More than 1000 Between 500 and 1000 Between 250 and 500 Between 100 and 250 Between 50 and 100 Between 20 and 50 Less than 20 T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 82. MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999)
© Copyright 2024