MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS

Transcription

MARKET DESCRIPTION,
COMPETITIVENESS ANALYSIS
IN THE FIELD OF PRODUCTS
AND PROTECTIVE SYSTEMS
INTENDED FOR USE
IN POTENTIALLY EXPLOSIVE
ATMOSPHERES
FINAL REPORT
December 1999
COMMISSION OF THE EUROPEAN
COMMUNITIES
DG III
Contact TAYLOR NELSON SOFRES CONSULTING
Pierre LAMBLIN
( 33 01 40 92 45 81
Olivier PEZZETTA
( 33 01 40 92 44 08
HCI / 2160
CONTENT
1. EXECUTIVE SUMMARY____________________________________________________________________________________3
2. OBJECTIVES OF THE SURVEY ______________________________________________________________________________6
3. SCOPE OF THE SURVEY __________________________________________________________________________________7
4. METHODOLOGICAL APPROACH _____________________________________________________________________________9
5. QUALITATIVE ANALYSIS _________________________________________________________________________________10
5.1. Structure of the ATEX market_____________________________________________________________________________________________ 10
5.2. Position of the actors on the 94/9/EC Directive _______________________________________________________________________________ 18
6. QUANTITATIVE ANALYSIS ________________________________________________________________________________25
6.1. Electrical motors _______________________________________________________________________________________________________ 25
6.2. Mechanical products intended to be used in potentially explosive atmosphere ______________________________________________________ 38
6.3. Lighting ______________________________________________________________________________________________________________ 60
6.4. Protective systems _____________________________________________________________________________________________________ 63
6.5. Instruments ___________________________________________________________________________________________________________ 66
6.6. Power distribution equipment _____________________________________________________________________________________________ 69
ANNEXES ______________________________________________________________________________________________72
Annex 1 : List of all manufacturers ________________________________________________________________________________________________ 73
Annex 2 : Main trade flows of Ex and non-Ex mechanical products _______________________________________________________________________ 76
T A Y L O R N E L S O N S O F R E S - Consulting ______________________________________________________________________________________________ 2.
MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS INTENDED
FOR USE IN POTENTIALLY EXPLOSIVE ATMOSPHERES (DECEMBER 1999)
1. EXECUTIVE SUMMARY
The total European Union market concerning the products intended for use in potentially explosive atmospheres and covered by the
94/9/EC Directive amounts to about Euros 2 673 million for the products under study, or between 1 and 20% of the whole E.U.
market of Ex and non-Ex products depending on the nature of the product:
n
n
Non-domestic cooling and ventilation equipment intended for use in potentially explosive atmospheres represent the leading
E.U. market in value (Euros 856 million), beyond pumps (Euros 256 million) and electrical instruments (Euros 348 million),
Highest proportion of sales of products intended for use in potentially explosive atmospheres in total sales concerns pumps
(20%), medium & high voltage motors (13%) as well as non-domestic coding and ventilation (9%).
Breakdown of the E.U. market of products intended for use
in potentially explosive atmospheres for products under study
Of which used in potentially
explosive atmospheres
Total E.U. market
153
13%
1 150
Motors (Medium & High Voltage over 1000 volts)
36
13%
280
Lighting
94
1%
9 780
348
(1)
(1)
Power Distribution Equipment
214
(1)
(1)
Total
845
-
-
Basic Electrical Ex Equipment
Motors (Low Voltage up to 1000 Volts)
Instruments
(1)
E.U. ATEX market
(Million Euros)
(Ex and non Ex)
: Products used in potentially explosive atmospheres are not in the same categories as those used in non hazardous areas.
MECHANICAL PRODUCTS
E.U. ATEX market
(Million Euros)
Of which used in
potentially explosive
atmosphere
Total E.U. market
(Ex and non Ex)
Pumps
436
20%
2 183
Gears and bearing systems
265
8%
3 310
Total
701
13%
5 493
E.U. ATEX market
RELATED MARKET
(Million Euros)
Of which used in
atmosphere
Total E.U. market
(Ex and non Ex)
Handling and lifting equipment
256
3%
8 520(2)
Non-domestic cooling and ventilation
856
9%
9 500(3)
1 112
6%
18 020
Total
Specific Ex products
Protective systems
E.U. ATEX market
(Million Euros)
15
Source: TN SOFRES Consulting, Manufacturers
(2) Figures given by VDMA for E.U. market of handling and lifting equipment include engineering services which represent between 30 to 50% of the total. Engineering,
services are not concerned by the new directive 94/9/EC and have been excluded from the scope of this study.
(3) Figures given by IFO/MBI for E.U. market of non-domestic cooling and ventilation include engineering services which represent between 20 to 40% of the total.
Engineering services are not covered by the new directive 94/9/EC and has been excluded from the scope of this study
The markets of products intended for use in potentially explosive atmospheres are very specific:
n
n
n
Oil and gas and chemicals represent the major end-user sector for those products,
Principal distribution channel is dedicated to OEMs (Original Equipment Manufacturers) which are in particular in charge of the
complete assembly, and very few to final end-users,
Foreign trade consists principally of intra-European exchanges.
In each European market segment of products intended for use in potentially explosive atmospheres, the manufacturers are not so
numerous and often specialise in a limited range of products in a niche market with a significant market share and few competitors.
In addition, the leading manufacturers of products used in potentially explosive atmospheres are playing a leading role in their
respective national markets but also on the other European markets. The trend towards a reduction of the number of players is
explained by increased merging/acquisition operations owing to scale economy and cost sharing related to development of
technical innovations, in particular concerning the components/products that are protected by intrinsic safety.
Most manufacturers feel concerned by the 94/9/EC Directive, with the exception of some manufacturers of mechanical products that
consider that their products do not represent a safety risk. In addition, as for protective mode, there still exists a competition
between the various manufacturers, mainly in terms of marketing arguments rather than for technical reasons.
Most people interviewed concerning the application of the 94/9/EC Directive have a contradictory opinion:
n
n
On the one hand, it is said that the number of actors and products intended for use in potentially explosive atmospheres will
decrease whereas prices will increase at the same time,
On the other hand, it is said that there will be minor changes owing to the high proportion of products intended for use in
potentially explosive atmospheres designed according to the old approach, which are in fact already compliant with the new
approach.
In addition, certain manufacturers suffer from a lack of communication about the technical limits of the 94/9/EC Directive.
In this context, we recommend to improve the communication, by providing a suitable service dedicated to answer all questions of
manufacturers under the auspices of the European Commission, the ATEX Standing Committee, the Notified Bodies Group, the
nominated authorities in member countries, trade associations and federations.
2. OBJECTIVES OF THE SURVEY
Objectives were clearly stated and confirmed twice during the two steering committees dealing with this matter.
They are the following:
Get a better/clearer picture of the market for products intended to be used in potentially explosive atmospheres by providing
information concerning:
n
types of products currently available on the market,
n
competitive features of the market,
n
manufacturers,
n
end-users: current and potential,
n
trade: between E.U. countries and with third countries,
n
future trends: to understand which sectors, in the foreseeable future, will be in need of these products and concerned by the
94/9/EC European Directive (and their approximate share of the market),
Though clearer, the picture of the market will still remain broad: the intention of the survey is not to describe each market
segment in details.
Results of the survey will be used by the European Commission to help tune regulatory policy.
3. SCOPE OF THE SURVEY
The following products are described in the present report:
n
n
n
n
Electrical motors:
−
Fractional horse power motors (below 1 horse power – 0.75 Kw),
−
Integral horse power motor (low, medium and high voltage).
Lighting: all kinds
Instruments:
−
Displays & indicators,
−
Sensors,
−
Fieldbus,
−
Electrical barriers,
−
Converters and transmitters,
−
Power supply.
Power distribution equipment:
−
Junction boxes & terminal boxes & relays,
−
Control cabinets,
−
Push buttons & switches,
−
Cable glands and enclosures.
n
n
Protective systems:
−
Flame arresters,
−
Water trough barriers & Extinguishing barriers,
−
Explosion relief systems (using bursting discs, vent panels, explosion doors, etc ...).
Mechanical products:
−
Pumps and compressors,
−
Handling and lifting equipments,
−
Gears,
−
Fans & cooling systems.
4. METHODOLOGICAL APPROACH
Following discussion at the first dedicated steering committee, it has been agreed that interviewing suppliers/manufacturers should
constitute the backbone of the methodology. This so called “manufacturers approach”was chosen for the following reasons:
n
They are chiefly concerned by the 94/9/EC Directive,
n
They have a global perception of the market (demand and supply sides),
n
n
They are best likely to have an opinion on the new sectors which will soon request products designed to be used in potentially
explosive atmospheres,
They have a good knowledge of the various existing standards, labels and certifications.
The major manufacturers of each sector were interviewed, either by direct contact or by fax or by telephone. The list of all
manufacturers contacted is presented in annexe 1: list of all manufacturers.
The evaluation of E.U. market of each segment of product corresponds to the market of the first buyer. The product can be either
used in European countries or for example re-exportated towards Middle-East or Asian countries.
During meetings with manufacturers, OEM(1) and end-users, their turnover and market estimates for 1998 were discussed. This is
the reason why TN SOFRES Consulting presents in this report some market estimates for 1998.
For reason of homogenisation, every market estimates are given in Euros (the average foreign exchange rates of August 1999 were
used).
(1) OEM: Original Equipment Manufacturer
5. QUALITATIVE ANALYSIS
5.1. STRUCTURE OF THE ATEX MARKET
This section presents a general analysis of the market concerning the products covered by the 94/9/EC directive. The remarks,
which are specific to a segment of products, are introduced in the corresponding sections.
According to most of the manufacturers that have been interviewed “Each Company is a leader on its market” and confidentiality is
the rule.
First of all, and for every segment of products used in potentially explosive atmospheres, the number of actors on the
European market is rather small. Each manufacturer is specialised in a few products, which represent a niche market with few
competitors. Only a couple of manufacturers have a wide range of products, which allow them to cover a large part of the market of
products used in potentially explosive atmospheres.
One consequence of the small number of competitors in this market is the confidentiality that a lot of companies practise. It should
be noted that there is no official statistics on the Ex market. The market evaluation of each segment of product represents strategic
information to them. A lot of companies refuse to participate in a market study such as the one we conducted, either in giving their
own turnover for Ex activity or in comparing our estimations of each market segment to theirs.
Some groups are established in all the countries concerned by the study. These include for instance STAHL and COOPER CEAG
for both Power Distribution Equipment and Instruments ; MTL, PEPPERL & FUCHS, and TURCK for Instruments ; or ABB, FELTEN
& GUILLAUME for Motors.
T A Y L O R N E L S O N S O F R E S - Consulting _____________________________________________________________________________________________ 10.
Certain characteristics of this market allow a number of very small companies which specialise only in Ex products to
have a large market share.
The European countries can, however, be divided into 2 groups with:
n
n
on the one hand, France, United Kingdom, Germany, Finland (with ABB for Motors) and Italy, whose markets are mostly
dominated by national players,
on the other hand, the rest of Europe, with small national companies where German, British, Swedish and French international
groups are also very well established.
The number of competitors depends on the segment of product studied. Indeed, the motors market is divided between a large
number of manufacturers where the biggest, controls only a small share of the market. The price is one of the most important
factors of difference between manufacturers of motors. Therefore, the production of some parts may have been relocated to
countries with lower labour costs.
The situation is different for the other segments of products used in potentially explosive atmospheres, where each manufacturer
tends to have greater specialisation in a particular product for specific applications. Furthermore, the number of competitors is
smaller. These products, such as Power Distribution Equipment, Instruments, and Protective Systems, are manufactured in the
European Union for internal sales and for export outside Europe.
The more the product is technically complex to be properly installed (for instance protective systems), the more added services are
sold with the product (such as engineering, for example).
The protective systems segment is distinct because a reasonable amount engineering studies are sold with these products by
manufacturers. The services added to the selling of goods may represent a significative part of the turnover of the player in this
market.
The Ex market is very stringent, and it is difficult for a new player to enter - indeed, one of the most important criteria of
selection is the safety of the product : compliance to safety standards is certified by a notified body, but clients also request good
references and experience. Customer need confidence. All this contributes to limit the entrance of new players.
The homogenisation of the protective standards concerning specific products, the opening of some markets and the
internationalisation of competition between manufacturers force companies to merge (for example COOPER and CEAG) or to
develop partnerships if they want to keep their position on the market. One consequence of this new tendency is a decrease in
the number of players in each segment of products.
The partnerships between companies allow them to offer global services to their clients in a greater number of countries. A part of
all products intended to be used in potentially explosive atmospheres produced into Europe are re-exported to Non-European
countries, such as, for example, towards the Middle East and Asia for Oil & Gas applications. These products may be re-exported
after being integrated into a bigger finished product.
As far as technical innovations are concerned, the part of product protected based on intrinsic safety increases with time.
However, some sectors usually protect mainly by the use of enclosures (as is the case in the Oil & Gas sector) and are not as ready
as other sectors to abandon the enclosure protection for intrinsic safety wherever possible, unless specific guarantees are brought.
EX represents a technological niche but there are competition between modes of protection. The development of one
protective mode instead an other is more a marketing question or behaviour of end-users than a technical issue, although the
motivation is technical. For example, as one manufacturer of pressure sensors protected by intrinsic safety told us, "Oil & Gas
companies request that this kind of sensor could resist a worker walking on it".
Companies, which have a part or all of their activity in mining, have already developed products for other markets as the demand in
Europe is decreasing with time. The merging of the protective standards on mining and on surface procedures in the same directive
is welcomed by all those concerned, and this measure should help them to widen their activity to other kinds of end-user sector
more easily.
Some manufacturers, especially in mechanical products, do not feel yet concerned by the 94/9/EC directive. They estimate
that their products do not represent a safety risk. For example, some gear manufacturers consider that “their products could not be
the source of an explosion as gears are filled with oil, which avoid sparks and hot spots ”. Moreover, the useful life of gears is longer
than that of motors, and these manufacturers link the risk of explosion to the electrical parts and not to the mechanical
parts. Some manufacturers of mechanical products do not consider that their products could affect the safety of other products
working with. It is clear that an information has to be brought in this respect.
5.1.1. Distribution schemes of products intended to be used in potentially explosive atmospheres
The majority of the products, especially motors, gears, fans and pumps, are not sold directly to end-user clients but to OEMs
(Original Equipment Manufacturers), which assemble the different parts. One of the consequences of this structure of the industry is
a significative lack of awareness of manufacturers with regard to the needs of the final market and to the requirements of their endusers.
The distribution schemes for Ex products are different, and many differences exist such as direct selling or through a wellestablished distributor in the country. The scheme depends more particularly on the structure of the company. On one hand, if the
product used in potentially explosive atmospheres represents only a small part of the company turnover, it will be distributed in a
complementary way as all the other products of the company. On the other hand, if the company specialises in Ex products, many
different schemes of distribution may be used.
Oil & Gas and Chemicals industries represent the major end-user sectors for Ex products. These sectors are composed of a
large number of international groups, which bring together the greater part of the activity of these two sectors. All these international
groups have developed partnerships with a small number of goods suppliers, who must be able to deliver their goods everywhere
their clients are present. Contracts that last several years are signed between clients and suppliers ; and of course, almost only
international suppliers can sign the appropriate kind of contracts. In consequence, a large part of the market is not available to small
suppliers.
The structure of the turnover of companies is different from one to another and depends on the amount of engineering services they
provide to their clients. For some of them, the turnover is only based on the selling of goods, while for others some engineering and
added services can represent the main part of their turnover.
The number of suppliers is very different from one segment to another. For instance, for power distribution equipment and
instrument products, the number of suppliers is very small, as each supplier specialises in few specific products.
Moreover, not every supplier is present in every country of the European Union, which decreases again the number of
eventual suppliers/distributors in each country.
5.1.2. Exports and imports between the Europe Union and the main areas of the world
For more quantitative figures about export and import of mechanical products, see the corresponding section in the present report.
Motor manufacturers have already begun to relocate a part of their production units to countries with lower labour costs. This
development is less significant for EX electrical products, which are still mainly manufactured in Western Europe.
The flow of imports and exports is mainly between E.U. members rather than between the E.U. and the rest of the world.
The European countries can be divided in two groups : on the one hand there are Germany, the United Kingdom, France, and Italy,
with very well-established national manufacturers which export into the rest of Europe and beyond ; on the other hand, there is the
rest of Europe, which sells their products mainly inside the European Union.
As far as the export of Power Distribution Equipment and Instruments from the European Union is concerned, it has been noted that
the German, Italian, and French markets export especially to Europe and less into the rest of the world. Their exports within Europe
are more than double their exports outside Europe, in percentage for a same volume of production. The exception is in the United
Kingdom, where the focus is on the opposite scheme : more exports outside Europe than within. One reason of this exception is
probably to be related to the fact that the British within the old approach were applying the same concept as set in the new
approach as far as the verification of Quality System is concerned and were therefore nearer to the North American practice than
the other E.U. partners. Although it may represents an effort and therefore a cost, these partners will benefit of the same situation.
It is necessary to make some remarks concerning the export of products manufactured in countries with lower labour costs towards
the European Union. Usually, the main European manufacturers which have bought subsidiary companies in Eastern countries to
manufacture some of their products include their turnover in their own figures. Therefore, the turnover of these subsidiaries is
counted in the turnover of their holding companies, and in consequence the stream of some specific parts of products between
these countries and the European Union does not appear clearly, because during meetings with manufacturers, it was difficult to
split their turnover between the different locations.
The competitiveness of European manufacturers may depends on the regulations on installation imposed indirectly on products
used in potentially explosive atmospheres. Indeed, the standards concerning the definition and the obligations are different between
the European Union and North America (although accepting recently the European zoning concept) and also the related regulation
within the zone. For example, in zone 2, the certification is not mandatory in the European Union but it is recommended ; which is
entirely different from the United States of America, where every product installed in zones 0, 1 and 2 has to be certified by a
notified body. In consequence, some European clients may buy American products to equip their zones 2 more readily than
European ones because the product may fulfilled already all the requirements of the directive.
For the zone 2, the constraint is coming from American standards as the European market is open and not the American one, in this
case the competitiveness seems to lie on the European side. Moreover, American manufacturers have to adapt their products to
sell them in European zones 0 or 1 which affects their competitiveness. In turn, European manufacturers meet similar constraints to
sell in American Div I and Div II. But the fact they have to develop better control of their production due to the implementation of the
94/9/EC Directive tends to put them in better position to export to USA. Of course this represents an effort of adaptation that has a
cost which cannot be underestimated.
As the products used in potentially explosive atmospheres are very specific, they are mainly still manufactured in the European
Union and very few can be manufactured in Asian countries. The flow of imports of Ex products from Asia into the European Union
is negligible. On the contrary, European Union manufacturers export Ex products to Asian countries where European
standards are accepted without too much problems for the time being.
One can note also that the Asian countries tends slowly but surely to accept ATEX product on the following basis: a kind of type test
assessment in conjunction with a procedure consisting in a continuous assessment of the Quality System of the manufacturers plus
a product testing in the course of the production or at the delivery point. This is already applied to very current product like normal
lighting. One may reasonably think that these requirements will be requested on to ATEX product. The 94/9/EC Directive appears
therefore as a good step in this direction but the Directive has no requirement as far as sampling and testing of product are
concerned.
North America represents the main competitor to the European Union for zone 2 and outside E.U. : North America, Australia
and Canada can be good technical competitors to European manufacturers but their standards are different. However, the
American standards for products used in potentially explosive atmospheres are different from those in force in Europe. But one can
note that should change very soon with the fact that Canada and Australia are moving to IEC standards which are very close to
European Standards.
Comparison of the acceptance of the different international standards
Standards
Europe
USA
Canada
South America
Asia
Australia
IEC
+ /-
+/-
+
+
+
+
UL
-
+
-
+ /-
+
-
EN
+
-
-
+/ -
+
-
Source: Notified bodies
5.2. POSITION OF THE ACTORS ON THE 94/9/EC DIRECTIVE
5.2.1. Opinion on the 94/9/EC directive
The opinions concerning the application of the 94/9/EC directive expressed by the people interviewed (either
manufacturers, professional associations or end-user clients) differ, and are sometimes contradictory.
The degree of awareness of the 94/9/EC Directive seems to vary between the people interviewed. The manufacturers, who are
already concerned by the Ex certification, are more informed than those who are not directly concerned, such as the
manufacturers of mechanical products.
The degree of awareness appears to increase with the size of the company and the number of countries covered or with the
specialisation of the company. These remarks are also valid for professional associations, where the biggest manufacturers have
people who are responsible for legislative questions. The professional associations represent the companies’ main source of
information on the new legislation.
Among the different profiles of the people interviewed, some of them mixed the different directives (CEM, ATEX, machinery
directive, … ). Moreover, all their efforts are directed towards the fulfilment of the requirements set by the most forthcoming
directives. As the 94/9/EC directive will be mandatory “only”in July 2003, this represents (according to some manufacturers) a great
deal of time to adapt their products. Surprisingly enough very little have mentioned the necessary adaptation of their quality system.
From the technical point of view, the 94/9/EC directive covers only certain products, and their specific use in potentially explosive
atmospheres. However, the technical limitations of the 94/9/EC Directive are not obvious to every manufacturer. It is
important therefore for them to be able to present their problems to a technical group, which will inform them whether their products
and applications are covered by the new directive or not. One should note that the notified bodies are able to answer their questions
and the European Commission is launching soon an ATEX guide.
The majority of manufacturers have started to develop their new products in agreement with the 94/9/EC directive. However,
concerning the products which are already being developed in agreement with the current legislation, the manufacturers will not
adapt all their products to the new directive and consequently, they will stop selling the oldest products on a technical or marketing
point of view after July 2003. The 94/9/EC Directive has repercussions on the development planning of existing products and
new products.
The structure of the market for products used in potentially explosive atmospheres is different in each of the E.U. countries. Indeed,
the installation behaviours have some impact on the types of protection used. For example, motors protected (by enclosures)
are proportionally less important in Germany than in France. Germany uses more low voltage motors in proportion to the other
countries of the European Union. The specific habits of each country will not disappear with the new European 94/9/EC Directive.
The new approach requests a product certification and a verification of the quality system of manufacturers which are European or
not, if they have chosen annex IV or VII. These requirements are going generally in the way of the expectations of the international
market. In conclusion, the application of the 94/9/EC directive may help the exportation of European products.
According to some manufacturers “The 94/9/EC Directive is seen as a means of limiting the entrance of new players into this
specialised market”. Of totally opposite views have been heard. Moreover, according to the same manufacturers, some actors
would have to stop selling products used in potentially explosive atmospheres after July 2003 (date of the application of the 94/9/EC
Directive and cancellation of old approach Directives) as the cost of updating their products will be far too expensive in comparison
with the limited extent of their activity in this market. Small companies may have surprisingly different views on the topic although
some of them freely recognised they fear the necessary adaptation or creation of their quality system. The Directive is seen by
some manufacturers and end-users as a means of “cleaning up” the sector by removing the weakest actors. According to some
manufacturers interviewed, the “high cost of certification will be another means of reducing the number of competitors” although
they consider that the additional cost for them to fulfil the requirements of the Directive will not be so high as they have already a
quality system quite in line with the type of safety product they are producing already.
It is the responsibility of users to define the different zones of potentially explosive atmosphere (zones 0, 1, 2). The price of a
product depends on the kind of zone in which it will be used. The products used in zone 0 are more expensive than those employed
in zone 1 which are generally more expensive than those in zone 2. In consequence, the users try to decrease the size of each
zone in order to save money. However, many users interviewed were not sufficiently informed of the specificity of each zone to be
able to decrease them as they would like.
Sometimes, users have bigger zones than necessary as they have some times insufficient information on the real risk on the site or
more often to simplify the problems of maintenance.
Directive 94/9/EC is already causing some confusion among the users of hazardous area equipment. An educational campaign is
therefore required and would be well accepted.
Many users expect that the removal of older products (old approach) from the European market after 2003 will cause problems for
many users who wish to extend their existing systems.
The 94/9/EC Directive will incite some manufacturers to discontinue several products where the demand is low, since they will not
be able to justify the costs of redesigning and re-certifying these products. According to some manufacturers “This situation will
inevitably lead to reduced profits and generate job losses”.
Where some companies compete with foreign companies, Directive is considered to adds significantly to their costs but it should be
noted that the Directive applies to non E.U. companies as well. Nonetheless some manufacturers consider that within the E.U.
prices would probably rise significantly, but this should be the same for all countries.
In order to be competitive with E.U. exports, some companies feel that “they would need to outsource components outside the
E.U.”.
5.2.2. Certification of products
According to the 94/9/EC directive, a product can be certified by any of the notified bodies. However, some end-users
continue asking for instance for a PTB certificate (one of the best-known German notified bodies). A PTB certificate appears to be
almost mandatory to sell a product able to work in potentially explosive atmospheres in Germany. But this type of behaviour may be
found in other country belonging to the E.U.
Even if all notified bodies are equivalent from the point of view of validity of certification, there is some competition between the
notified bodies of different countries. “The additional cost of transport (of technicians and products to be tested) required in order
to obtain a certificate from the notified body of another country may be too expensive for a local manufacturer”, as reported.
The application of the 94/9/EC Directive is effective in a given country only when the text of the directive has been “transposed" into
the national law. Not every country of the European Union had the same level of progress. The delay in some countries (for
example Italy, Belgium, … ) could have penalised some manufacturers, who had planned earlier sales of ATEX certified products.
This indicate that the notify bodies from the other countries are not used enough.
One of the main differences between the old and the new approach is the verification of the quality system for the production of
products used in potentially explosive atmospheres. A lot of manufacturers are already quality certified according to the ISO 9000
requirements, and some manufacturers see “the quality insurance required by the 94/9/EC directive as a new administrative task
that will need a great deal of extra work”.
This quality insurance requires by the new approach must be a means for manufacturers to improve the quality of their
production. Moreover, the quality insurance of the production process is an asset to sell products in the North American market as
it is asked the same kind of quality insurance. However other alternatives of the Directive can be used instead of the annex IV or
VII. Other solutions are available which may better fill to the needs of the manufacturers, in one sense verification of quality system
is not compulsory if every product is verified which will be the case for very limited series.
For the notified bodies, the new directive is also demanding a large amount of work, and especially as a large number of
manufacturers may be certifying their products just before the deadline for the application of the 94/9/EC Directive (July 2003).
A lot of manufacturers concerned think that “the great majority of their products will be certified under 94/9/EC very easily, and that
the certification is only an administrative task. These actors will not, from a technical point of view, be changing their products”.
Most of the manufacturers have developed their new products in line with the 94/9/EC directive, but none of them have
been able to ensure that all their products under old approach will be new approach compliant. As some manufacturers
have new and old approach products in their catalogues “they are waiting until all their products are ATEX before presenting the
94/9/EC Directive to their clients, as it is important for their clients that their catalogues be homogeneous”.
The cost of certification in the U.K. was considered as higher than in competitor countries - in the UK, companies had to provide a
licence fee and a surveillance scheme for certified equipment in the old approach, it is true to say that at the moment no other
country had a surveillance scheme for certified equipment. The 94/9/EC Directive requires a surveillance scheme, and this should
remove some of the disadvantages experienced in the past by the British when compared with their European competitors. Besides
this one can note that what could have appeared as a disadvantage was good when considering the results of export of UK,
specially in USA.
Some users ask questions because for many of the parties involved it is unclear as to who will carry out the evaluation audits and
who will propose the necessary steps to be taken to achieve a safe plant: is this the task of a notified body, of the supplier of safety
equipment, of inspectors or of the user himself? Furthermore, some companies have the feeling that little practical guidance is given
to the user concerning what to do, how to proceed and so forth. Guideline for the new directive is coming at the time we are printing
this report.
It is considered by some manufacturers that “The total exercise will benefit E.U. and international sales - technically speaking since the standards will force manufacturers to deliver quality products and nothing but quality products”.
The progress of manufacturers from the interviews in adapting their products to the 94/9/EC directive is reported as follows:
n
n
n
n
n
British manufacturers, for example, are currently working on designing conforming products, some of which will be ready before
2003. They have already opened a dialogue with the notified body, though more frequently actual certificates need to be updated
by the notified body. The impact of the new approach will not be identical in every country, especially in United Kingdom which
has, in the framework of the old approach, already a quality insurance for the production step.
The French manufacturers will be ready in due time. Some of them already have a certain number of their products in conformity
with the 94/9/EC directive while others have not even started work on the question.
The biggest German manufacturers are ready and will have the entire range of their products certified before 2003. They
consider the new certification as compulsory, and will therefore ensure compliance in due time. The smallest manufacturers do
not yet have any products of their range in conformity with the directive, and are therefore working on it to avoid being forced out
of business.
Scandinavian manufacturers are doing really well in that they will be ready for 2003 in the near future. Most of their products are
already in conformity with the new directive.
The other countries are just starting to establish new certifications, while some others will not start getting new certificates before
2003.
In conclusion, most of the European manufacturers believe to be ready in 2003 for the 94/9/EC Directive.
Our recommendation is still an effort on communication on the new approach to be sure that will be really effective.
5.2.3. Recommendations for future E.U. policy in the ATEX field
First of all, the main comments expressed by the people interviewed concern the lack of information on the European directive. The
different players of the Ex market feel not to be equal when facing the level of information available, and the European
Commission and interested parties (ORGALIME, member states, notified bodies, … ) have to increase communication on the
94/9/EC Directive in order to spread information on the technical limits of the directive and to avoid the mixing of the different
existing directives concerning manufactured products. This information is to be made both towards the manufacturers and users.
Moreover, in addition to the information on the 94/9/EC Directive, it could be interesting if a group of experts were available to
answer manufacturer’s technical questions.
Customer awareness is the key : are the aims and the benefits clearly understood?
All the issues concerning conformity require professional resources and time, at considerable cost. Smaller manufacturers claim
that they are in conformity, but in fact are not. There are very clear advantages for both the end-users and the "genuine"
manufacturers, providing false declarations are firmly acted upon. This the role of the member states to organise properly the
market surveillance. One can nonetheless expect a better control of the process related to the quality involved in production from
the application of annex IV and VII.
It seems that in total that 94/9/EC Directive beyond the real problems it may cause to some manufacturers could represent
a real opportunity for them to update their entire product designs and literature and to improve in general their
manufacturing process. It may also appear as a good step for the acceptance of their products outside Europe.
If reasonable put into operations it may also contribute to develop the confidence between the end-users which buy and the
manufacturers which produce and sell. Confidence is in fact the key issue.
6. QUANTITATIVE ANALYSIS
6.1. ELECTRICAL MOTORS
6.1.1. General description of the European motor market (Ex and non-Ex)
TYPE OF MOTORS:
Motors can be divided in two categories: IHP (Integral Horse Power Motors) and FHP (Fractional Horse Power Motors).
IHP MOTORS (1)
FHP MOTORS (2)
AC Polyphase: 80%
AC Singlephase : 5%
DC: 15%
Total European market
revenues
2.7 billion Euros
Number of units sold
in Europe
4.9 million motors
DC: 50%
AC Singlephase: 25%
AC Polyphase: 50%
Unisacsal: 10%
Total European market
revenues
4.9 billion Euros
Number of units sold
in Europe
283 million motors
Source: TN SOFRES Consulting, Frost & Sullivan
(1) Integral Horse Power Motors range from 0.75 kw and above
(2) Fractional Horse Power Motors are below 0.75 kw
APPLICATION AND USAGE (PERCENTAGE OF TOTAL REVENUES):
FHP motors are not concerned by 94/9/EC directive as the vast majority is not industrially used. When they are, almost
none of them is used in a potentially explosive atmosphere. As a result only IHP motors are covered by the present
survey.
End-use sectors of Ex and non-Ex IHP motors
AC motors
DC motors
Pumps, valves, compressors
31%
10%
Heating Ventilation Air Conditioning (HVAC)
14%
3%
Mechanical handling
12%
14%
Machine tools
10%
11%
6%
10%
Process plant
11%
15%
Battery driver
-
25%
Others
16%
12%
TOTAL
100%
100%
Machine engineering
Pumps, and compressors represent the first application of AC IHP motors with 30%.
End-use sectors of Ex and non-Ex IHP motors
Automotive auxiliaries
30%
Domestic appliances
14%
Industrial machinery
11%
Pumps and compressors
10%
Heating Ventilation Air Conditioning (HVAC)
11%
Portable tools
7%
Office machinery
5%
Medical equipment
5%
Others
7%
TOTAL
100%
REVENUES AND MARKET STRUCTURE (EX AND NON-EX IHP MOTORS ONLY):
n
n
n
n
In 1998, an estimated 5 million units were sold in Europe for total revenues worth (2.7 billion Euros),
Sales and revenues decreased sharply over the first four years of the 1990’s. Only moderate growth has been registered since
1995,
The overall European market is expected to grow by 2% per annum over the next 5 years (1999-2004),
The motor market industry is very price sensitise and face fierce competitors from cheap labour countries. Yet, the bulk of the
competitors is on standard, low voltage motors (very mature and low-technology products) as opposed to adapted (customised
motors, for which European manufacturers still have a clear quality and know-how competitive advantage). The very notion of
European manufacturers is becoming difficult to understand as all major manufacturers are gradually relocating part of or all their
industrial facilities in East Europe (acquisition of local companies).
BREAKDOWN BY PRODUCT TYPE FOR EX AND NON-EX MOTORS:
In value term, AC polyphase motors (<750 kW) cover 75% of the revenues. This share is higher in number of units with 80%(*).
EUROPEAN REVENUS: 2.7 Billion Euros
AC Single
phase
DC motors
AC Polyphase
(> 750 kw)
15%
UNITS: 4.9 Million motors
AC Polyphase
(> 750 kw)
250
0.05%
5%
AC Single
phase
DC motors
500,000
11%
450,000
9%
5%
75%
3.9 Million
80%
AC Polyphase
(< 750 kw)
AC Polyphase
(< 750 kw)
Source: TN SOFRES Consulting, Frost & Sullivan, Manufacturers
(*) However, when the power of motors increases, the price increases faster. For example with only 0,05% of the total number of IHP motor units, AC polyphase motors (>750
kW) represent more than 5% of the total revenues.
BREAKDOWN BY COUNTRY FOR EX AND NON-EX MOTORS:
Germany represents the first manufacturer and the first market of the European Union for motors with 41%.
TOTAL E.U. REVENUES: 2.7 Billion Euros
Benelux
Rest of E.U .
Scandinavia
Iberia (Spain+ Portugal)
5%
5%
6%
Germany
7%
United Kingdom
11%
41%
12%
13%
France
Italy
Source: TN SOFRES Consulting, Frost & Sullivan, Manufacturers
EX AND NON-EX ACTORS:
The market is constituted of:
n
n
n
A few large European-wide manufacturers, of which the largest (their combined turnover is in excess of 50%) are:
−
ABB,
−
SIEMENS,
−
BTR-SIEBE (Brook Hansen),
−
LEROY SOMER (EMERSON GROUP),
−
ALSTOM.
A lot of small national manufacturers, often specialised on niche markets (narrow range of products; turnover mostly made in
their country of origin).
Imports: Main non E.U. manufacturers with European sales officer.
6.1.2. Motors working in hazardous areas
The below figures refer to the following motor categories:
è
è
è
è
d
e
n
de
Flameproof
Increased safety
Non sparking
Flame proof with increased safety
EX MOTORS: LOW VOLTAGE MOTORS (UP TO 1000 VOLTS)
Germany is the first market for Ex Low Voltage motors with 55 Million Euros.
TOTAL E.U. SALES FOR 1998: 153 Million Euros
55
23
22
20
12
12
9
Germany
U nited Kingdom
France
Italy
Scandinavia
Benelux
Rest of E.U .
EX MOTORS: MEDIUM & HIGH VOLTAGE MOTORS (OVER 1000 VOLTS)
First, as the number of Ex medium and high voltage motors sold every year is low in each country (less than 100 units for the
biggest countries), national market could change a lot of from one year to an other.
Secondly, as the legislation on low and medium & high voltage motors is different from one country to an other, national markets
evaluations are not always based on the same basis.
These two reasons explain why Germany has a national market for medium & high voltage motors in the same range as the other
main European countries.
8
7
6
6
4
3
2
Germany
Italy
France
United Kingdom
Scandinavia
Benelux
Rest of E.U .
ACTORS: EUROPEAN AND NON-EUROPEAN MANUFACTURERS OF MOTORS FOR HAZARDOUS LOCATION
Ex Electrical motors
(Low voltage, up to 1000 Volts)
GERMANY
FRANCE
UNITED KINGDOM
ITALY
REST OF E.U.
n
ABB
n
ABB
n
ABB
n
ABB
n
ABB (Finland)
n
BROOK-HANSEN
n
ATAV
n
BROOK-HANSEN
n
BROOK-HANSEN
n
EFFACEC (Portugal)
n
FELTEN & GUILLAUME
n
BROOK-HANSEN
n
CEMP
n
CEMP
n
LEROY-SOMER
n
CEB LEROY SOMER
n
CEN
n
ELECTROADA
n
LOHER
n
CEMP
n
F&G
n
FIMM
n
SIEMENS
n
CEN
n
MARELLI
n
LOHER
n
F&G
n
MFTC
n
MARELLI
n
LOHER
n
MORLEY ELECTRICAL
n
SIEMENS
Market estimate: 55
Market estimate: 22
Market estimate: 23
Market estimate: 20
Market estimate: 33
EX E.U. SALES FOR 1998 *(in million Euros): 153
(*) Total sales in Europe: Production + Imports - Exports
Ex Electrical motors
(Medium and high voltage, over 1000 Volts)
GERMANY
FRANCE
UNITED KINGDOM
ITALY
n
ABB
n
ABB
n
ALSTOM
n
ABB
n
ALSTOM
n
ALSTOM
n
HYUNDAI/PARSONS
n
ALSTOM
n
ANSALDO
n
ANSALDO
n
LAURENCE SCOTT
n
ANSALDO
n
FELTEN & GUILLAUME
n
CEN
n
MITONDICHI
n
LOHER
n
LOHER
n
F&G
n
MARELLI
n
SIEMENS
n
LOHER
n
SIEMENS
Market estimate: 8
Market estimate: 6
Market estimate: 6
Market estimate: 7
REST OF E.U.
n
ABB (Finland)
Market estimate: 9
Ex E.U. SALES (*) (in million Euros): 36
6.1.3. Applications and end-usage (Ex low, medium & high voltage motors)
PERCENT OF REVENUES BY APPLICATION AND END-USER INDUSTRY
Pumps represent the first application of Ex motors with 55%, before fans with 25%. Chemicals and Oil & Gas are the two main
sectors using Ex motors.
UNITS: 196 Million Euros
O ther
(Food processing,
paper & pulp)
Chemicals
Fans
5%
25%
40%
55%
55%
8%
12%
Pump
Compressors
O il & Gas
O ther
(Material handling, mixers)
Clearly, pumps and fans are the two mechanical pieces of equipment the most intensely used in hazardous areas:
n
They account for 80% of all ex motors-powered equipment,
n
Though mixers and materials handling can be used in hazardous areas, they only account for less than 10%.
à
The 94/9/EC Directive will mainly impact on pumps and fans users/manufacturers but only on a tiny fraction of the mixers and
materials handling business.
Dust protection is becoming a growing concern è it is a growing market for Ex motors manufacturers. However, the food
processing, wood and paper & pulp industries will remain marginal markets for Ex motors producers.
Production and trade flows:
n
n
As shown earlier, each of the four major European countries have their “national champion” which cover a large portion of its
country market,
Contrary to standard IHP non-Ex motors, which are mature low-tech and easily manufactured products, Ex motors production is
confined to a few large European manufacturers.
The reasons are the following:
n
n
n
Products have to comply with a strict set of “national”installation standards,
End-users are risk-averse and prefer buying from well established companies è it is almost impossible for small players to be
on the vendors list as a potential main suppliers.
Contrary to what is happening with standard motors, most of Ex motors manufacturing facilities have not (yet) be re-localised in
cheap labour countries. However, it is likely to become a growing trend in the near future (Poland, Cheque Republic, Hungary,
Slovakia, … ).
Country
% of country market covered
by national manufacturers
GERMANY
70%
UK
90%
FRANCE
70%
ITALY
60%
Rest of E.U.
30%
Imports from Asia and America (North and South) are very small and are not a significant competitor feature of the European
markets.
PERCEPTION OF THE 94/9/EC DIRECTIVE AMONG MANUFACTURERS
n
n
n
Most large manufacturers are aware of the directive and have a good practical knowledge of its likely impact on their production
process,
So far, only one international manufacturer, boasts to be fully “ATEX compliant”. All others claim they are compliant in principle
as their products already abide by their existing country safety standards and regulations. In any case, all of them plan to be
ready before the deadline.
Generally speaking, large manufacturers see the directive rather positively as they think “it will make it even more difficult for
“exotic manufacturers”to penetrate this lucrative market”è The directive will help create/reinforce a niche market in Europe
hold by a handful of powerful European manufacturers.
6.2. M ECHANICAL PRODUCTS INTENDED TO BE USED IN POTENTIALLY EXPLOSIVE ATMOSPHERE
6.2.1. Pumps and compressors (NACE 29.12)
The market for pumps and compressors (NACE 29.12) is constituted mainly by liquid pumps, compressors, vacuum pumps and
their parts. The proportions of each of those mechanical products installed in potentially explosive atmospheres are very different.
n
n
As compressors and vacuum pumps are usually not installed in hazardous area ; the percent concerned by the new directive
ATEX is very low.
On the contrary, in value term, 65% of liquid pumps are used in industrial applications and 35% in private applications
(i.e. circulation of water in houses and buildings). The proportion of liquid pumps installed in potentially explosive atmosphere
area is much bigger than for compressors and vacuum pumps. By consequences, the following figures concerned only the
E.U. market of liquid pumps.
E.U. market of pumps (Ex and non-Ex) for 1997
(Million Euros)
Production
5 853
Exports
5 332
Imports
2 838
Apparent consumption
3 358
Of which industrial applications
2 183
Source: TN SOFRES Consulting, EUROPUMP
Breakdown of the production of Ex and non-Ex pumps for 1997 by country
(Million Euros)
TOTAL E.U. PRODUCTION FOR 1997: 5 853 Million Euros
Italy
Rest of E.U .
14%
810
21%
1 232
17%
995
U nited Kingdom
11%
630
37%
2 186
France
Germany
Source: EUROPUMP
Germany is the first exporter of pumps in the European Union.
Breakdown of the export of Ex and non-Ex pumps for 1997 by country
(Million Euros)
TOTAL E.U. EXPORT FOR 1997: 5 332 Million Euros
Italy
Rest of E.U .
U nited Kingdom
11%
577
29%
1 547
14%
763
12%
666
34%
1 779
France
Germany
Source: EUROPUMP
The four main European countries (Germany, France, United Kingdom and Italy) import and export pumps in all the European
Union.
Breakdown of the imports from E.U. of Ex and non-Ex pumps for 1997 by country
(Million Euros)
TOTAL E.U. IMPORTS FOR 1997: 2 838 Million Euros
Italy
U nited Kingdom
9%
245
9%
260
Rest of E.U .
44%
1 265
14%
395
24%
673
France
G ermany
Source: EUROPUMP
Germany is the first market of pumps in the European Union. However, pumps can be integrated in bigger machines to be reexported towards an other country to be used there.
Breakdown of Ex and non-Ex pumps apparent consumption for 1997 by country
(Million Euros)
TOTAL E.U. SALES FOR 1997: 3 358 Million Euros
Italy
Rest of E.U .
15%
493
U nited Kingdom
28%
948
14%
478
11%
359
32%
1 080
France
Germany
Source: EUROPUMP
Sales = Production + Import - Export
Even if the sector of Oil & Gas represents only 16% of all pump applications, this sector uses half of the total pumps able to work in
potentially explosive atmospheres.
Pumps: breakdown by industrial applications in 1997
% of which used in potentially
Market share of ATEX pump
7%
10%
< 1%
Oil & Gas
16%
60 %
10%
Chemicals
10%
50%
5%
Energy (vapour, power plant… )
25%
4%
1%
Others (paper, steel, … )
42%
10%
4%
100%
-
20%
Sector
Agro-food industry
TOTAL
Market share of total pumps
Source: EUROPUMP, Pump Manufacturers, TN SOFRES Consulting
E.U. Market concerned by the
94/9/EC Directive
436 million Euros
About 20% of the industrial pumps are installed in potentially explosive atmosphere areas.
The E.U. market of pumps concerned by the 94/9/EC Directive is about 436 million Euros.
List of main manufacturers of pumps
n
ALFA LAVAL
n
ALTAS COPCO CREPELLE (France)
n
ANSIVAL (France)
n
CENTAC
n
COMPAIR REAWELL
n
COOPER TURBOCOMPRESSOR (UK)
n
DEUTSCHE VORTEX
n
DEUTZ (Germany)
n
FRIATEC (France)
n
GRUNDFOS (Denmark)
n
HIBON INTERNATIONAL (France)
n
INGERSOLL-RAND
n
ITT (American manufacturer as the world's biggest pump-maker)
n
KSB (German group which is Europe's second biggest maker of pumps)
n
MAN (Germany)
n
MOUVEX (France)
n
SIEMENS (Germany)
n
SULZER TURBO (Switzerland)
n
WORTHINGTON CREYSSENSAC (France)
Source: TN SOFRES Consulting, EUROPUMP, Manufacturers
6.2.2. Handling and lifting equipment (NACE 29.22)
The handling and lifting equipment represents the main end-use sector of the mechanical industry in value term in almost every
country of Europe, except in United Kingdom where ventilation and air conditioning are the first end-use sectors of the mechanical
industry.
This segment of products includes, among others:
n
Manufacture of hand operated or power driven lifting, loading and on loading machinery like pulley tackle, hoist, mechanical
manipulators,
n
Manufacture of conveyors,
n
Manufacture of lifts.
E.U. market of handling and lifting equipment in 1997
(Million Euros)
Production
26 595
Exports outside Europe
6 630
Imports from outside Europe
1 880
21 845
Source: IFO/VDMA
E.U. market of handling and lifting
equipments in the scope of this study
8 520 (1)
The market of automotive trolley has been excluded from our study. This segment of product represents about 21% of the handling
and lifting equipment market.
(1)
Figures given by VDMA for E.U. market of handling and lifting equipment include engineering services which represent between 30 to 50% of the total. Engineering, services
are not concerned by the new directive 94/9/EC and has been excluded from the scope of this study.
Germany is the European leader for the production of handling and lifting equipments.
Breakdown of production of Ex and non-Ex handling and lifting equipment by country
TOTAL E.U. PRODUCTION FOR 1997: 26 595 Million Euros
Italy
Rest of E.U.
8%
United Kingdom
17%
16%
17%
42%
France
Germany
Source: FEM, TN SOFRES Consulting
Categories
Market share
% of which used in potentially explosive
atmosphere
Part of equipments concerned by
94/9/EC Directive
Lifting equipment
30%
< 1%
< 1%
Powder handling systems
20%
5%
1%
Others
50%
4%
2%
TOTAL
100%
-
3%
Source: FEM, TN SOFRES Consulting, Manufacturers
E.U. market concerned by the 94/9/EC
directive
256 million Euros
The handling and lifting equipment's sector can be divided as followed:
n
n
n
30% of lifting equipment which are mostly not installed in potentially explosive atmosphere areas.
20% of handling systems which can transport powders among different kinds of products. It is mainly pneumatic systems,
conveyor bells, mechanical handling. About 5% of these mechanical products could transport dangerous powder and will need to
fulfil the directive 94/9/EC requirements.
For the 50% remaining, about 4% of them can work in potentially explosive atmosphere areas.
In conclusion, the E.U. market of handling and lifting equipment concerned by the 94/9/EC Directive will be about
256 million Euros.
List of main manufacturers of Handling and lifting equipment's
n
ALSTOM
n
BUHLER (Germany)
n
CEAC
n
ETPASS
n
KIEPE (Germany)
n
EUROPONT
n
KRONE
n
GERICKE (Switzerland)
n
KVÆRNER PROCESS
n
LANCER-BOSS (United Kingdom)
n
LANSING (United Kingdom)
n
STAHL
n
LINDE/STILL (Germany)
n
TUNG HEINRISCH (Germany)
n
MANNESMAN DEMATIC
n
VALMET (Finland)
n
NEUTRANSFERT (France)
n
VERLINDE
n
RUD (Germany)
n
VICTORI
n
SCHINDLER
n
ZEPPLIN (Germany)
6.2.3. Gears and bearing systems (NACE 29.14)
Concerning gears sector, most suppliers manufacture only the gearboxes and buy out the motors necessary to supply geared
motors to theirs customers. Only a few manufacturers produce themselves both Motors and Gearboxes.
The gears can be divided in six product segments:
n
Helical Gearboxes
n
Planetary (Epicyclic) Gearboxes
n
Worm Gearboxes
n
Helical Geared Motors
n
Planetary (Epicyclic) Geared Motors
n
Worm Geared Motors
E.U. market of gears and bearing systems (NACE 29.14) for 1994
(Million Euros)
Production
12 019
Exports
7 951
Imports
6 716
10 881
Source: IFO/ MBI
Among the gears and bearing systems (NACE 29.14), the gearboxes and geared motors market accounts for 3 310 million
Euros in 1997.
Revenue forecasts of total gearboxes and geared motors market in E.U.
for the period 1994-2004
Year
European Revenues (Million
Euros)
Revenue Growth Rate
1994
3 230
--
1995
3 270
0.8 %
1996
3 290
0.7 %
1997
3 310
0.8 %
1998
3 340
1.0 %
1999
3 390
1.4 %
2000
3 450
1.8 %
2001
3 530
2.2 %
2002
3 620
2.7 %
2003
3 730
3.0 %
2004
3 850
3.2 %
Source: Frost & Sullivan
Germany is the main market in Europe for gearboxes and geared motors.
Share of the main E.U. countries
for gearboxes and geared motors in 1997
Country
Germany
United Kingdom
Market share in E.U.
46.0 %
8.2 %
France
11.1 %
Italy
11.8 %
Spain
3.5 %
Scandinavia
7.5 %
Benelux
5.8 %
Rest of E.U
6.1 %
Total
100%
Application market share by revenues for total gearboxes
and geared motors marketin E.U. in 1997
Application
Market share
% of which used in potentially
explosive atmosphere
Percentage of gears working
in potentially explosive
atmospheres
Mechanical Handling
27.9 %
3%
1%
Foodstuffs
14.8 %
6%
1%
Metals Production
8.8 %
10%
1%
Rubber and Plastics
8.7 %
0
0%
Paper, Printing and Textiles
8.4 %
0
0%
Mobile Equipment
5.2 %
-
- (1)
Pumps, Valves and Mixers
4.7 %
20%
<1%
Mining and Tunnelling
4.6 %
65%
3%
Marine
3.1 %
-
- (1)
Others
13.8 %
6%
<1%
TOTAL
100 %
--
8%
(1) Mobile equipment is out of the scope of the present study
Even if the sector of mining and tunnelling represents only 4.6% of all revenues of gearboxes and geared motors, this segment
covers more than a third of the gears able to work in hazardous areas.
About 8% of the total E.U. market of gearboxes and geared motors will be concerned by the 94/9/EC Directive which will
represent about 265 million Euros.
Some manufacturers, especially in mechanical products, do not feel concerned by the 94/9/EC directive. They estimate that
their products do not represent a safety risk. For example, some gear manufacturers consider that “their products could not be the
source of an explosion as gears are filled with oil, which avoid sparks and hot spots. Moreover, the useful life of gears is longer than
that of motors, and these manufacturers link the risk of explosion to the electrical parts and not to the mechanical parts”.
For the United Kingdom, the total gearboxes and geared motors market for the period 1994-2004 is presented in the table below:
Year
UK Revenues (Million Euros)
Revenue Growth Rate
1994
265
--
1995
267
0.5 %
1996
269
0.8 %
1997
272
1.0 %
1998
274
1.3 %
1999
279
1.4 %
2000
283
1.6 %
2001
289
2.0 %
2002
296
2.3 %
2003
304
2.6 %
2004
312
2.9 %
The power transmission engineering equipment is a segment of the gears and bearing systems, which is concerned by the new
directive 94/9/EC. Power transmission engineering represents about 50% of the whole power transmission activity. Some figures on
this segment are presented hereafter.
The five main E.U. countries export more than 51% of all power transmission engineering in the world.
Export of power transmission engineering by major supplying countries, 1997
Country
Share (%)
Germany
24 %
Italy
7.9 %
France
8.3 %
Great Britain
6.4 %
Belgium / Luxembourg
4.5 %
TOTAL EUROPE
Japan
51.1%
20.7 %
USA
11 %
Other
17.2 %
Total
100 %
Source: VDMA, Power Transmission Engineering Report
Country
Belgium
Germany
Power Transmission Engineering
Production 97 (Million Euros)
260
3 920
France
530
UK
941
Italy
2 340
EUROPE
8 580
Source: VDMA, EUROTRANS
List of main manufacturers of gears and bearing systems
n
AB BENZLERS (Sweden)
n
ALLEN GEARS (UK)
n
BAUER
n
BONFIGLIOLI RIDUTTORI (Italy)
n
BREVENI RIDUTTORI (Italy)
n
BROOK HANSEN (UK)
n
BROWN PESTELL
n
CMD (France)
n
DAVID BROWN GROUP (UK)
n
FLENDER
n
HASEN / STEPHAN
n
NORD
n
OPPERMAN MASTERGEAR
n
RENOLD
n
SEW (Germany)
n
SIMPATROLL
n
SOM (Italy)
n
SUMITOMO
6.2.4. Non-domestic cooling and ventilation (NACE 29.23)
The non-domestic cooling and ventilation segment includes more than only fans, these segment includes also machines for:
n
Air conditioning in non-domestic applications,
n
Dust control and gas cleaning,
n
Industrial refrigerating equipment and exchangers,
n
Dryers,
n
Surface treatment,
n
And spare parts.
Fans are used in the previous end-use sectors where they are integrated with other products in bigger equipments.
E.U. market of non-domestic cooling and ventilation (Ex and non-Ex) for 1994
(Million Euros)
Production
14 733
Exports
7 656
Imports
6 471
13 580
Source: IFO/MBI
E.U. market of non-domestic cooling and ventilation in the scope of this
study
9 500 million Euros (1)
(1)
Figures given by IFO/MBI for E.U. market of non-domestic cooling and ventilation include engineering services which represent between 20 to 40% of the total. Engineering
services are not covered by the new directive 94/9/EC and has been excluded from the scope of this study.
Total market share
% of which used in
atmosphere
Air conditioning
33%
5%
2%
Dust control and gas cleaning
10%
20%
2%
Industrial refrigeration equipments
22%
0
0%
Drying equipments
8%
10%
1%
Surface treatment
13%
30%
4%
Others
14%
5%
< 1%
TOTAL
100%
-
End-use sectors
% of products working in potentially
9%
Source: UNICLIMA, VDMA, Manufacturers, TN SOFRES Consulting
E.U. Market of non domestic
cooling and ventilation concerned
by the 94/9/EC directive
856 million Euros
The part of the E.U. market of non-domestic and ventilation concerned by the 94/9/EC Directive is about 856 million Euros.
List of main manufacturers of non-domestic cooling and ventilation
n
ABB Energy
n
Balcke-Durr (Germany)
n
CARRIER (France)
n
Deutsche Babcode
n
Elfi (Italy)
n
EMaC (UK)
n
FLS MILJØ
n
Linde
n
Mattexs and pates
n
SAME (Specialised Air Movement Equipment) (UK)
n
Tetra Laval (Sweden)
n
Woods (UK)
6.3. LIGHTING
The Ex European lighting market can be divided into 6 main ranges of products:
n
Fluorescents,
n
Floodlights,
n
Bulkhead light fillings,
n
Handlamps,
n
Pendants,
n
Tank inspections.
However, the fluorescents products represent the most important segment of the Ex lighting market.
The Ex Scandinavian market is significant in comparison with the economic weight of this region in Europe. The Oil & Gas industry
are really well developed there and that is the reason why the lighting market is so established there. Their good position on the
lighting market allows them to export these goods too, mostly in Europe.
Users define the zones, where specific products used in potentially explosive atmosphere are needed. However, the installation
behaviours are not identical in every E.U. member. For example for Ex lighting, there are more zones 2 in United Kingdom than in
other European countries. As lighting products used in zones 2 are cheaper that ones in zone 1, the market of United Kingdom for
lighting is smaller, in value term, in comparison with other segments of products covered by this study.
E.U. market of Ex lighting in 1998
(Million Euros)
25
16,5
16
14
11
7
4,5
Germany
U nited Kingdom
France
Italy
Benelux
Spain
Rest of E.U .
Ex Lighting manufacturers
GERMANY
FRANCE
UNITED KINGDOM
ITALY
REST OF E.U.
n
CEAG
n
CEAG
n
CEAG
n
AD VIGAND/FONDI SANZO
n
GLAMOX (Norway)
n
CHALMIT
n
DTS
n
CHALMIT
n
CEAG
n
TECHNOR (Norway)
n
DTS
n
GLAMOX
n
DTS
n
CORTEM
n
LEGRAND
n
LEGRAND
n
LEGRAND
n
DTS
n
MAELKER & KAGE
n
SCHUCH
n
n
ITALSMEA
n
SCHUCH
n
STAHL
n
LEGRAND
n
NUOVA Asp – FEAM
n
SCHUCH
n
STAHL
n
STAHL
Market estimate: 25
n
VICTOR
Market estimate: 14
PFP ELECTRICAL
PRODUCTS
n
STAHL
n
VICTOR
Market estimate: 16
Market estimate: 11
Market estimate: 28
EX E.U. SALES FOR 1998 (*) (in million Euros): 94
6.4. PROTECTIVE SYSTEMS
The Protective Systems market is more complex as it is not affected by any previous Ex directive.
Protective systems can be segmented into 3 main categories:
n
Flame arresters,
n
Water through barriers and extinguishing barriers,
n
Explosion relief systems (using bursting discs, vent panels, explosion doors, etc … ),
n
Others.
The Protective Systems market is held in very few manufacturers where the sales of product is often combined with engineering
services added.
The European market of protective systems is well balanced between main E.U. countries and the rest of Europe.
E.U. market of protective systems in 1998
(Million Euros)
4
4
3,5
2,5
1
Germany
U nited Kingdom
France
Italy
Rest of E.U .
Protective systems
GERMANY
FRANCE
UNITED KINGDOM
ITALY
REST OF E.U.
n
FIKE
n
FIKE
n
BRUSH TRANSFORMERS
n
FIKE
n
FIKE Europe
n
KIDDE DOIGRA
n
KIDDE
n
EXPO
n
KIDDE
n
STUVEX
n
TOTAL WALTHER
n
STUVEX
n
FIKE
n
STUVEX / ISMA
n
KIDDE/INCOM (Switzerland)
n
KIDDE
n
NEWSON GALE
n
STUVEX
Market estimate: 4
Market estimate: 2.5
Market estimate: 3.5
n
Market estimate: 1
HOERBIGER VENTILWERKE
(Austria)
Market estimate: 4
6.5. INSTRUMENTS
The Ex instruments market can be divided into 6 main segments:
n
Displays and indicators,
n
Sensors,
n
Fieldbus
n
Electrical barriers,
n
Convectors and transmitters,
n
Others
It has been noticed that the instruments for gas detection account for a major part of all of the instruments which are used in
hazardous areas.
The major part of instruments is protected by intrinsic safety (ia or ib).
Some industrials who were interviewed are located on the two segments, that is to say that they sell their products as Power
Distribution equipment while they have been included into Instruments manufacturers, because they have very close applications.
Germany represents the first European market for Ex instruments.
E.U. market of Ex instruments in 1998
(Million Euros)
126
69
60
52
41
Germany
U nited Kingdom
Italy
France
Rest of E.U .
Ex Instruments
GERMANY
FRANCE
UNITED KINGDOM
ITALY
REST OF E.U.
n
ABB
n
A PUISSANCE 3
n
ABB
n
ABB
n
MTL
n
BARTEC
n
ABB
n
COOPER CEAG
n
COOPER CEAG
n
STAHL
n
COOPER CEAG
n
BARTEC
n
CROWCON
n
ELCON
n
COOPER CEAG
n
DRAEGER
n
BEKA
n
DAVID DERBY
n
MTL
n
TURCK
n
ENDRESS HAUSER
n
COOPER CEAG
n
DRAEGER
n
PEPPERL & FUCHS
n
ZELLWEGER (Switzerland)
n
EXTEC
n
DRAEGER
n
MEGGITT MOBREY
n
STAHL
n
HARTMANN & BROWN
n
GEORGIN
n
MTL
n
TURCK
n
IBS SCHILLING
n
IFM
n
PEPPERL & FUCHS
n
IFM
n
MTL
n
STAHL
n
MTL
n
PEPPERL & FUCHS
n
TURCK
n
PEPPERL & FUCHS
n
STAHL
n
ZELLWEGER
n
STAHL
n
TURCK
n
TRION
n
TURCK
n
VEGA
n
ZELLWEGER
Market estimate: 126
Market estimate: 41
Market estimate: 69
Market estimate: 52
Market estimate: 60
6.6. POWER DISTRIBUTION EQUIPMENT
The Ex Power Distribution Equipment market can be segmented into 5 main categories of products:
n
Junction boxes, terminal boxes and relays,
n
Control cabinets,
n
Push buttons and switches,
n
Cable glands and enclosures,
n
Others.
It has to be known that we are dealing with a niche market, that is to say that each industrial specialises in its niche
market with very few direct competitors. Their view of the market can only be based on their own products and as a result to
this, they have a narrow evaluation of the whole market.
Germany is the first European market for Ex power distribution equipment.
E.U. market of Ex power distribution equipment in 1998
(Million Euros)
TOTAL EX E.U. SALES FOR 1998: 214 Million Euros
78
43
41
27
Germany
U nited Kingdom
France
25
Italy
Rest of E.U .
Ex Power distribution equipment
GERMANY
FRANCE
UNITED KINGDOM
ITALY
REST OF E.U.
n
ABB
n
ABB
n
ABB
n
ABB
n
APLEI
n
BARTEC
n
BARTEC
n
AEI CABLES
n
AD VIGANO
n
RAEFOSS
n
BERNSTEIN
n
CAPRI
n
AMOT CONTROLS
n
COOPER CEAG
n
TECHNOR
n
COOPER CEAG
n
COOPER CEAG
n
BICC
n
CORTEM
n
TRANBERG
n
FANAL
n
LEGRAND
n
BRUSH TRANSFORMERS
n
ITALSMEA
n
HARTMANN & BROWN
n
n
CMP
n
LEGRAND
n
HUMMEL
n
COOPER CEAG
n
NUOVA ASP
n
FEEL
n
STAHL
n
HAWKE
n
LAPP
PHOENIX MECANO /
ROSE
n
STAHL
n
TECHNOR ATEX
n
LEGRAND
n
ROSE
n
LEGRAND
n
STAHL
n
PEPPERS
n
STAHL
n
WALSALL EX
Market estimate: 78
Market estimate: 27
Market estimate: 41
Market estimate: 25
Market estimate: 43
EX E.U. SALES 1998 (*) (in million Euros): 214
ANNEXES
ANNEX 1 : LIST OF ALL MANUFACTURERS
Companies
Motors
Lighting
Protective
systems
u
u
AD VIGANO
u
u
AEI CABLES
ALSTOM
u
u
AMOT CONTROLS
u
APLEI
ATAV
u
u
u
ATHEX BVBA
u
u
u
BARTEC
u
u
u
BICC COMPONENTS
BROOK HANSEN
Power
distribution
equipment
u
A PUISSANCE 3
ABB
Instruments
u
u
BRUSH TRANSFORMERS
C.E.B.
u
C.E.N.
u
u
Companies
Motors
Lighting
Instruments
Protective
systems
u
CAPRI
CEMP
Power
distribution
equipment
u
u
CHALMIT
u
CMP
COOPER CEAG
u
u
CORTEM
u
u
CROWCON
u
DAVID DERBY
u
DRAEGER
u
u
DTS
EEV
u
ELCON
u
u
ENDRESS HAUSER
u
u
EUROMOTORI
u
u
EXPO
F.E.E.L.
u
FANAL
u
FELTEN&GUILLAUME
u
u
FIKE
u
GEORGIN
GLAMOX
u
Companies
Motors
Lighting
Instruments
Protective
systems
u
HARTMANN&BROWN
u
HAWKE CABLE GLANDS
u
HOERBIGER VENTILWERKE
u
HUMMEL
u
ITALSMEA
u
u
KIDDE
u
LAPP
u
LEGRAND
LOHER
Power
distribution
equipment
u
u
u
MAEHLER&KAEGE
u
MEGGITT MOBREY
u
MOOG CONTROLS
MORLEY ELECTRICAL
u
MPTC ELEKTROTECHNIK
u
u
MTL
u
NEWSON GALE
u
NORCON NORRIS
NUOVA ASP
u
u
P.F.P. ELECTRICAL PRODUCTS
u
u
PEPPERL&FUCHS
u
PEPPERS
u
Companies
Motors
Lighting
Instruments
Protective
systems
Power
distribution
equipment
RAEFOSS
u
RITTAL
u
ROSE/PHOENIX MECANO
u
u
SCHUCH
u
SERVONEX
SIEMENS
STAHL
u
u
u
u
STUVEX
TECHNOR
u
u
u
u
TECHNOR ATEX
u
TECHNOR ISIS
THERMON
u
TRANBERG
u
u
TURCK
TYCO VALVES
u
UPTECH
u
VICTOR
u
WALSALL EX
u
WEIDMULLER
u
ZELLWEGER
u
ANNEX 2 : MAIN TRADE FLOWS OF EX AND NON-EX MECHANICAL PRODUCTS
The most important trade flows intra-E.U. members and with third countries, in million Euros, are presented hereafter for:
n
Pumps and compressors (NACE 29.12),
n
Handling and lifting equipment (NACE 29.22),
n
Gears and bearing (NACE 29.14),
n
Non-domestic cooling and ventilation (NACE 29.23).
Pumps and compressors are one of the main segment of mechanical products in value terms. Imports are important (more than
1000 Million Euros) between Europe and North America or with Asia. Eastern countries exports mainly because many European
manufactures have relocated their production there.
The most important trade flows intra-E.U. members and with third countries
for Ex and non-Ex pumps and compressors in 1997 (NACE 29.12)
Source: TN SOFRES Consulting – EUROSTAT
North America
Asia
European Union
Eastern Europe
(Million Euro)
More than 1000
Between 500 and 1000
Between 250 and 500
Between 100 and 250
Between 50 and 100
Between 20 and 50
Less than 20
The exports of handling and lifting equipments are less important than for other mechanical products but are well balanced between
North America, Asia and E.U. countries.
for Ex and non-Ex handling and lifting equipment in 1997 (NACE 29.22)
North America
Asia
European Union
Eastern Europe
(Million Euro)
More than 1000
Between 250 and 500
Between 100 and 250
Between 50 and 100
Between 20 and 50
Less than 20
The main trade flows of gears and bearing systems are between North America and European Union countries.
for Ex and non-Ex gears and bearing systems in 1997 (NACE 29.14)
North America
Asia
European Union
Eastern Europe
(Million Euro)
More than 1000
Between 250 and 500
Between 100 and 250
Between 50 and 100
Between 20 and 50
Less than 20
The European Union exports more than 1000 million Euros of non-domestic & ventilation products in Asia, which represent the main
trade flow for this category of product.
for Ex and non-Ex non-domestic cooling and ventilation in 1997 (NACE 29.23)
North America
Asia
European Union
Eastern Europe
(Million Euro)
More than 1000
Between 250 and 500
Between 100 and 250
Between 50 and 100
Between 20 and 50
Less than 20

MARKET DESCRIPTION, COMPETITIVENESS ANALYSIS IN THE FIELD OF PRODUCTS AND PROTECTIVE SYSTEMS

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