MRO Magazine

Spurt in Innovation and New Product Development Predicted to Drive the Global Tools and Components Market Through 2020, Says Technavio

May 27, 2016
By Business Wire News


Technavio research analysts are forecasting positive growth for many segments of the global tools and components market over the next four years as several related markets, including valves and manifolds, earthling equipment, and cleanroom technology equipment, will likely witness an increase in revenues.

Technavio research analysts predict the global valves and manifolds market to grow steadily at a CAGR of 7% during the forecast period. Increased application of valves and manifolds in the oil and gas, process, and power industries is expected to fuel market growth. The power sector is one of the most prominent end-users of this market. With the construction of new nuclear power plants, the demand for valves and manifolds will witness a further jump over the forecast period. For instance, China is very ambitious in adding nuclear capacities to its power mix and has added seven nuclear reactors during 2015. Currently, there are close to 21 nuclear reactors under construction, and many are in the planning stage.

The earthing equipment market is also likely to grow at a steady CAGR of over 6% by 2020. The demand and reconstruction of existing power grids will drive the growth of earthing equipment during the forecast period. Additionally, the ability of earthing equipment to discharge over-voltages from overhead ground wires to the ground is another critical factor that will foster its adoption. The industrial segment will emerge as the largest market segment for earthing equipment during the predicted period. The industrial segment will witness extensive use of earthing equipment, particularly in the aviation sector, where it is anticipated to help in static grounding and earthing of aircrafts. Since all aircrafts require externally generated electrical power supplies to facilitate servicing and maintenance, earthing equipment finds growing use in preventing dangers to external power supplies.

The forecast period will also witness the cleanroom technology equipment market grow at a CAGR of 5%. Development of new biologics and its increasing use in medical devices industry, along with the growing demand for sterilized pharmaceutical formulations drives the expansion of this market. In pharmaceutical and biotechnology industries, production will be geared toward effective control of any contamination, including people, raw materials, process plant and equipment, and accommodating services. Cleanroom technology creates a controlled environment to arrest contamination from pollutants such as dust, microbes, airborne particles, chemical vapor, and water vapor.

“The HVAC segment dominated the market during 2015. Pharmaceutical and biotech companies focus on product quality, and this is likely to spur the HVAC market to considerable growth and create an uptake of cleanroom technologies in the future. The HVAC market is also projected to become highly competitive in the coming years due to growing environmental awareness, rising energy costs, and cost-consciousness of customers in fast-growing Asian markets,” said Anju Ajaykumar, one of Technavio’s lead analysts for heavy industry research.

EMEA accounted for the highest market share for the valves and manifolds market in 2015. Stabilization of oil prices and increased use of natural gas will boost investments in oil and gas applications in the Middle East, which is the largest contributor of this market. During the same period, the Americas is expected to dominate the earthing equipment market and will likely account for more than 54% of its total share by 2020. The recent increase in construction of data centers in this region is a significant factor that necessitates utilization of earthing equipment during the forecast period. APAC emerged as the largest cleanroom technology equipment market region during 2015. The presence of pharmaceutical, electronics, and semiconductor industries in contributes to the region’s leading share in the market.

View Technavio’s entire tools and components report library

Some of the key vendors for the global tools and components market include Circor Instrumentation, DK-Lok,and Ham-let forvalves and manifolds; ABB, Alstom, and Crompton Greaves for earthling equipment; and Alpiq, Ardmac, and Clean Air Products for cleanroom technology equipment.

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About Technavio

Technaviois a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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