by Jared Weiner | 10/31/2019

 

The global market for process level measurement instrumentation is well-established, yet diverse and still evolving. While many of the older, mechanical-style devices maintain extensive installed bases, newer technologies such as laser and radar have been the target of continued innovation from some of the world’s largest industrial automation suppliers. Market revenue will continue to be well-distributed geographically―the exhibits below show the 2018 regional distribution for the liquids market and the solids & powders market, respectively―however, growth opportunities will be strongest in the Asia-Pacific region, which will benefit from an acceleration of automation projects in countries such as China and India.

Global Share of Process Level Measurement Revenue by Geographic Region (2018)
(Percentage of Revenue)

The Chinese market presents one of the most challenging areas of competition for global suppliers. Despite the burgeoning economic growth and surge of technology spending in the region, mainstream brands have struggled to overcome the entry barriers that hamper access to this market. Tight profit margins are the primary barrier―a challenge that, while global in nature, is particularly intense in China. The combination of extreme price-sensitivity, low-cost local competitors, and high import costs precludes many global competitors from even attempting to make inroads in the region. A significant local presence is a de facto requirement for successfully selling in China, with a local manufacturing facility particularly critical to keeping costs in line with pricing requirements.

Unfortunately, uncertainty surrounding Chinese import tariffs and other international trade policies lessens the probability of any relief from these entry barriers in the short term. Economic challenges aside, long-term revenue growth for global suppliers operating in China will be dependent upon the ability (or willingness) of the Chinese government to enforce intellectual property rights. The Chinese market, as it currently stands, is simply too populated by low-cost knockoffs to make concerted competitive efforts by global brands a risk-free endeavor.

More insight 
How will end-user preferences shape market growth? Which regional and economic factors will influence market dynamics? Which suppliers command the greatest shares of the liquids and solids level measurement markets? VDC’s recently completed research program, The Global Market for Process Level Measurement, explains.

This multi-volume program includes detailed analyses of two level measurement sub-markets:

• The Global Market for Process Level Measurement of Liquids; and
• The Global Market for Process Level Measurement of Solids & Powders

Each volume is available now! Please contact us for more information.