ARC Advisory Group: Worldwide Machine Safeguarding to Reach $2.8B
August 2, 2007 // Published as a news service by IHS
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The worldwide market for machine safeguarding tools is expected to grow at a compounded annual growth rate (CAGR) of 12.5% over the next five years, according to an ARC Advisory Group study.
The market was $1.5 billion in 2006 and is forecasted to exceed $2.8 billion in 2011.
According to ARC, the overall safeguarding market is growing as a direct result of the continued demand for industrial machinery.
Machinery shipments are escalating in virtually every sector of the market. Consequently, the demand side is creating a pull in the market across the entire range of safeguarding product segments.
"The challenge to suppliers of machine safeguarding components is that increasingly more control reliable safeguarding components are entering the market. This is pulling some of the growth away from the traditional safety relay module market," said ARC research director Sal Spada.
Research findings include the following:
- Safety raises productivity.
Strategic safety initiatives have moved to the forefront of topics for manufacturers due to an increased awareness of total return on investment (ROI). In addition to ensuring worker safety, manufacturers are learning how a safety strategy can be a competitive advantage rather than a cost burden. As the availability of control reliable servos, fluid power, and programmable logic controllers (PLCs) emerge, safeguarding tools in these sectors are threatening the traditional safety relay market sector.
- Consulting services and skilled sales channel are important.
Consulting services are increasingly more important in the selling process to assist machine builders in making the right choice for their particular application. In many ways, the machine builder today is faced with the same challenges they face when seeking to create the optimal mechatronic solution for the machine.
- Far East offers largest opportunities.
According to ARC, China, Japan and India represent the highest growth markets for machine safeguarding. The Japanese government mandated that companies with more than 20 workers must purchase machinery and equipment with safety integrated solutions. The transfer of production to China by major manufacturers is moving a safety mentality to the region.
For more information about the report, titled Machine Safeguarding Solutions Worldwide Outlook, go to http://www.arcweb.com.
Source: ARC Advisory Group.