Competition, Standardization Drive Respiratory Equipment Markets
March 14, 2006
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The demand for
respiratory protective equipment in Western Europe has increased significantly, while new opportunities continue to contribute to impressive market growth, according to Frost & Sullivan.
Factors as diverse as international standardization, geographic expansion, production outsourcing and optimization, strategic pricing, product differentiation and enhanced features could all have a positive impact on the future of the region's respiratory protective equipment markets.
Analysts said the market is evolving in tandem with the increasing sophistication of end-user needs. To suppress the negative impact of persistent pricing pressures and a volatile market environment, industry participants are focusing on implementing cost-cutting measures, improving their operating efficiency and delivering results.
Overall, the eight segments within the market are likely to generate revenues of €567.0M in 2011, an increase from €488.7M in 2005, according to Frost & Sullivan.
"As price competition and acquisitions prevail, equipment manufacturers are actively seeking means to establish and maintain their competitive advantage," said Frost & Sullivan research analyst Kumud Verma. "In addition to the demand from niche applications and higher acceptance of sophisticated safety equipment, the stronger legislation in western Europe is a key driver for greater sales in the respiratory protective equipment markets."
Analysts said the impact of legislation could be particularly significant in regions that have been slow in adopting it. Some of these standards are already in their third generation and technological advancements and new requirements necessitate revisions in standards, as witnessed in the case of flame engulfment tests for self-contained breathing apparatus (SCBA). The impact of these regulations will strengthen once ISO standardization of respiratory protective equipment is complete.
Standards for equipment providing protection against chemical, biological, radiological or nuclear (CBRN) materials will also provide new market opportunities, especially for powered air-purifying respirators and escape-only equipment.
Among all these developments, analysts said companies need to overcome daunting challenges such as market saturation and increasing influx of low-priced products from the Far East by being more responsive toward the changing markets. It will become necessary to focus on building brand recognition over time, as the companies rely a great deal on the image projected by their brands.
"More companies are focusing on offering high performance-oriented products and adapting to the changing customer landscape," said Verma. "These companies have been successful to a large extent in establishing themselves strongly in the markets, based on the simple fact that numerous users are willing to pay a higher price for branded equipment."
Manufacturers could also concentrate on improving the design and ergonomics of protective equipment. This enables equipment suppliers to differentiate their products and increase the acceptance among end users. Educating customers can also help them in opting for the most suitable equipment, a critical factor that would eventually boost sales of quality goods. Today's markets are benefiting from users' preference for equipment that offers comfort along with technically superior performance.
This is amply reflected in the market revenues where disposable masks and SCBAs account for 25% of sales. Disposable masks cater to a vast range of applications and require frequent replacements. SCBAs, on the other hand, have limited applications and longer replacement lifespan.
European standardization at an international level will present one of the most pressing challenges to the respiratory protective equipment industry in the next few years. A subcommittee for respiratory protection in ISO TC 94 requires strong European representation that will safeguard the integration of European standards into international standards and will protect European businesses against high restructuring costs.
Source: Frost & Sullivan.