demand for enhanced software and data analytics services bolster the condition monitoring equipment...

Research Research PREVIEWPREVIEW for for

Analysis of the Global Condition Monitoring Analysis of the Global Condition Monitoring

Equipment MarketEquipment Market

Demand for Software and Services Help Bolster the Mature Condition

Monitoring Equipment Market

2NDAD-30

The Full Analysis Features the Following Content

Section Slide Numbers

Executive Summary 3

Market Overview 8

• Market Definitions 9

• Key Questions This Study Will Answer 12

• Market Segmentation 13

Drivers and Restraints—Total Market 14

• Market Drivers 15

• Market Restraints 20

Forecast and Trends—Total Market 24

• Market Engineering Measurements 25

• Forecast Assumptions 27

• Revenue Forecast 28

• Revenue Forecast Discussion 29

• Pricing Trends and Forecast Discussion 30

3NDAD-30

The Full Analysis Features the Following Content (continued)


• Revenue Forecast by Region 33

• Revenue Forecast Discussion by Region 35

• Revenue Forecast by Vertical Market 36

• Revenue Forecast Discussion by Vertical Market 37

Market Share and Competitive Analysis—Total Market 38

• Market Share 39

• Market Share Analysis 40

• Competitive Environment 41

• Top Competitors 42

• Competitive Factors and Assessment 43

Mega Trends and Industry Convergence Implications 44

• Mega Trend Impact on the Condition Monitoring Market 45

• Industry Convergence—Big Data and Condition Monitoring 49

• Opportunities for Big Data and Industrial Condition Monitoring 50

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Vibration Condition Monitoring Segment Analysis 54

• Key Findings 55




• Revenue Forecast Discussion by Product and Services 59






Lubricating Oil Analysis Equipment Segment Analysis 71

• Key Findings 72



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Thermography Equipment Segment Analysis 84

• Key Findings 85









6NDAD-30



• The Last Word 97

• The Last Word—3 Big Predictions 98

• Appendix 100

• Market Engineering Methodology

• Additional Sources of Information

• Learn More—Next Steps

7NDAD-30

• The condition monitoring equipment market is going through a difficult phase. Growing concerns about the global economy, turbulent oil prices, and geopolitical factors are challenging the market.

• Despite these challenges, pockets of opportunities across the market have helped sustain the market.

• Technology improvements have played an important role in improving the usability, effectiveness, and capabilities of condition monitoring equipment, while bringing down costs.

• The convergence of technologies across many different areas, including wireless communication, sensors, cloud computing, data analytics, smart factories, and smart mobility, is expected to give rise to new growth opportunities.

• Because of the lack of skilled personnel and an aging workforce, customers are turning to their hardware providers for additional support. Opportunities in design, installation, maintenance, data collection, and diagnostic services have created alternate revenue streams for condition monitoring equipment companies.

• Europe was a key region for concern in 2013. As the second largest market in terms of revenue contribution, the slowdown in manufacturing in this region directly impacted growth in market.

• The vibration condition monitoring equipment segment continues to be the dominant revenue contributor, with a market share of 64.8% in 2014.

Key Findings

Source: Frost & Sullivan

8NDAD-30

Compound Annual Growth Rate

Compound Annual Growth Rate

4.9%4.9%

(CAGR, 2014–2019)

Market Concentration

Market Concentration

40.9%40.9%

(market share held by top 3 companies)

Market Engineering Measurements

Market StageMarket Stage

MatureMature

Average Price Range Per Unit

Average Price Range Per Unit

$1,000–$3.0

M

$1,000–$3.0

M

Market Size for Last Year of Study Period

Market Size for Last Year of Study Period

$1,905.3 M$1,905.3 M

(2019)

Customer Price Sensitivity

Customer Price Sensitivity

77

(scale:1 [low] to 10 [high])

Degree of Technical Change

Degree of Technical Change

55

(scale:1 [low] to 10 [high])

Market RevenueMarket Revenue

$1,501.4 M$1,501.4 M

(2014)

Total Condition Monitoring Equipment Market: Market Engineering Measurements, Global, 2014

Market OverviewBase Year Market Growth Rate

Base Year Market Growth Rate

2.8%2.8%

For a tabular version, click here.Stable IncreasingDecreasing

Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

9NDAD-30

Replacement Rate

Replacement Rate

5–15years5–15years

(average period of unit replacement)

Average Product Development Time

Average Product Development Time

1–5 years1–5

years

Number of Companies that Exited*

Number of Companies that Exited*

00

(2014)

Number of Companies that Entered*

Number of Companies that Entered*

00

(2014)

Number of Competitors

Number of Competitors

~110~110

(active market competitors in base year)

Market Engineering Measurements (continued)

Competitor Overview

Stable IncreasingDecreasing

Industry Advancement

Marketing Spend as a Percent of Market Revenue

Marketing Spend as a Percent of Market Revenue

2–4%2–4%

R&D Spend as a Percent of Market Revenue

R&D Spend as a Percent of Market Revenue

4–6%4–6%

*Note: Companies with revenue of more than $1 M Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

Total Addressable Market

10NDAD-30

CEO’s Perspective

2 Hardware technology advances have been negligible.

Hardware technology advances have been negligible.

3The field of condition monitoring software and analytics has witnessed considerable improvements.

The field of condition monitoring software and analytics has witnessed considerable improvements.

4The lack of qualified/certified personnel is a critical challenge in the global condition monitoring equipment market.

The lack of qualified/certified personnel is a critical challenge in the global condition monitoring equipment market.

5 India and China will be the growth engines of the future.

India and China will be the growth engines of the future.

1 Global macroeconomic factors have a strong influence on market growth.

Global macroeconomic factors have a strong influence on market growth.


11NDAD-30

After a strong recovery in 2010 and continued growth in 2011, the global condition monitoring equipment market experienced difficulties in 2012 and 2013. Demand for new condition monitoring equipment remained mostly flat, with Europe as a particularly challenging market for equipment vendors; however, stability in North America and encouraging signs in Asia-Pacific (APAC) point to a stronger performance throughout the forecast period.

Condition monitoring equipment has been used for several decades to maximize performance from asset investments, attaining greater productivity and enhancing savings. In the past, condition monitoring equipment had been viewed as a complex and expensive maintenance solution, suitable only for monitoring highly critical rotating machinery.

Improved and advanced technology, however, has made predictive maintenance more widely accepted and available to the masses. Over the past decade, condition monitoring solutions have progressed greatly in terms of usability and diagnostic capability and have become more affordable.

Market Definitions

Scope

Geographic coverage Global

Study period 2012–2019

Base year 2014

Forecast period 2015–2019

Monetary unit US dollars


12NDAD-30

Definitions

For the purpose of this study, the global condition monitoring equipment market has been segmented

into the following categories:

•Vibration condition monitoring equipment. This segment has been broken down by product type:

o Online vibration condition monitoring equipment

o Portable (offline) vibration condition monitoring equipment

•Lubricating oil analysis equipment

•Thermography equipment

Detailed definitions of all product segments are found in the analysis breakdown for each segment.

Revenue forecasts, geographic trends, end-user analysis, market share analysis, and individual trends

impacting each segment have been provided.

Even with improvements and advances in other condition monitoring techniques such as airborne

ultrasound testing, electrical signature analysis, and corrosion monitoring, these technologies have

been excluded from the scope of this study.

Condition monitoring services have been excluded from the scope of this study.

Market Definitions (continued)


13NDAD-30

Market Definitions (continued)

Geographic regions covered

•North America—United States and Canada

•Europe—Countries in Western and Eastern Europe, including Russia

•APAC—Countries on the Western border of the Pacific ocean, including those on the Indo-Chinese peninsula and the Pacific islands and Central Asia

•Rest of World —Latin America (Brazil, Mexico, Argentina, and Central and South America) and regions not mentioned above, particularly the Caribbean Islands, the Middle East, and Africa

End-user segments covered

•Oil and gas (O&G) industry includes refineries (on shore and off shore) and pipelines (O&G and chemical and petrochemical industries)

•Power generation industry incudes traditional and renewable power generation plants, utilities, and cogeneration facilities

•Aerospace and defense industry includes commercial and private aviation and military and defense-related research labs

•Process and manufacturing industry includes industries such as automotive, food and beverage, paper and pulp, plastic, cement, rubber, textile, pharmaceutical, and glass

•Other industries include commercial research and development ; education; laboratories, plumbing; environment; heating, ventilation, and air conditioning ; transportation; and waste water treatment plants


14NDAD-30

Key Questions This Study Will Answer

Is the condition monitoring equipment market growing? How long will it continue to grow and at what rate?

Is the condition monitoring equipment market growing? How long will it continue to grow and at what rate?

What are the key growth drivers and restraints for the market? Are there any potential future challenges that could restrict growth of this market?

What are the key growth drivers and restraints for the market? Are there any potential future challenges that could restrict growth of this market?

Who are the leading participants, and what is their market share? Did the economic downturn have an impact on the competitive positioning of the market participants?

Who are the leading participants, and what is their market share? Did the economic downturn have an impact on the competitive positioning of the market participants?

Which regions are expected to provide the highest growth potential for the future? Can North America sustain its position as a key revenue contributor in the face of rising global competition?

Which regions are expected to provide the highest growth potential for the future? Can North America sustain its position as a key revenue contributor in the face of rising global competition?

Are the products offered today meeting customer needs, or is additional development needed?Are the products offered today meeting customer needs, or is additional development needed?

Which applications and industries will drive demand for condition monitoring equipment? Will the traditional end-user segments continue to be the biggest revenue generators?

Which applications and industries will drive demand for condition monitoring equipment? Will the traditional end-user segments continue to be the biggest revenue generators?


15NDAD-30

Market Segmentation

Key Takeaway: Vibration condition monitoring equipment is still the most effective and popular choice for monitoring high-value assets.

Key Takeaway: Vibration condition monitoring equipment is still the most effective and popular choice for monitoring high-value assets.

Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan

Interested in Full Access? Connect With Us

Jaylon BrinkleyCorporate Communications

(210) 247.2481

[email protected]

Jaylon BrinkleyCorporate Communications

(210) 247.2481

[email protected]

Research Authors

Vijay MathewProgram ManagerMeasurement & Instrumentation

Jessy CavazosIndustry DirectorMeasurement & Instrumentation

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Global Perspective40+ Offices Monitoring for Opportunities and Challenges

Industry ConvergenceComprehensive Industry Coverage Sparks Innovation Opportunities

Automotive&

Transportation

Aerospace & Defense Measurement &Instrumentation

Information &Communication Technologies

HealthcareEnvironment & BuildingTechnologies

Energy & PowerSystems

Chemicals, Materials& Food

Electronics &Security

Industrial Automation& Process Control

AutomotiveTransportation & Logistics

ConsumerTechnologies

Minerals & Mining

demand for enhanced software and data analytics services bolster the condition monitoring equipment...

Technology

region65revenue forecast

region91revenue forecast

region78revenue forecast

region35revenue forecast

services59revenue forecast

forecast discussion30

vertical market37market

assessment43mega trends