The European minimotors market is poised for a concerted rise in demand and revenues up to and beyond the end of the Millennium, forecasts a new study by Frost & Sullivan, marketing consultants.
Growth is expected to be driven by intensified demand in the DC market, with a good increase in interest for brushless solutions. Design developments, more competitive price levels and a positive rise in orders from the general industrial market are expected to provide a further boost behind future revenue growth.
In 2004, total revenues are forecast to be US$1.85billion, with unit shipments expected to have risen to 168.7million from 142.4million in 1997.
Mik Sabiers, Industry Manager at Frost & Sullivan, reports: `Recovery from recession is a key driving force behind growth in the minimotor industry. Market developments have strengthened, but overall business is continuing to be affected by strong price competition as well as fragile customer confidence in some user sectors and/or regions’.
`Greater market sector maturity, primarily for AC minimotor solutions, may serve to impact total market growth potential, as certain product sectors begin to stabilise in terms of demand before recording a slow contraction. Manufacturers will need to adapt to changes in terms of demand, overall user requirements as well as increased competition for orders from a gradually reducing customer base’.
The report concludes that key competitive challenges include the need to react to ever strengthening price competition, the requirement to develop the technology, and an emphasis on service.