Impressive growth to the APAC region’s Power Industry combined with stringent air pollution controll has driven many industry players right into the hands of The Global Air Monitoring and Sampling Equipment (AMSE) Market, and vendors are greeting them with open arms, driving market growth at a CAGR of 21 percent for the 2012-2016 period.
This growth is highly attributed to increasing industrialization and urbanization in the APAC region, which currently holds a 42.34 percent share in the AMSE Market. The major player in the APAC region is China which both the primary revenue contributor and the fastest growing country in the market.
Air quality is a growing concern for China and recently the government has stepped in, laying down the law with strict emission regulations imposing better air pollution control. This has forced many large scale industries, especially power plants to install Continuous Emission Monitoring (CEM) Systems to measure concentrations of sulfur dioxide, mono-nitrogen oxides and other harmful chemical emissions. For instance, the Cement industry produces approximately 900 Kg of carbon dioxide for every 1000 Kg of cement produced. By enforcing air pollution control on emissions end-users can increase energy and production efficiency.
Another factor aiding AMSE market growth is the intense competition among vendors. While the market has several key players, combined they only account for 14 percent of the market and that share is cut in half in the APAC region. This is due in large part to large international vendors struggling to compete with the extremely low air pollution control product prices offered by Chinese vendors.
Although competition is helping the market grow in the APAC region, vendors in other regions have had to lower their prices in an attempt to undercut Chinese competition. This has proved to be a mixed bag of results. On one hand, lowering prices has enabled more international vendors to attract new customers. However, the Chinese can afford to offer such low prices because of considerably lower material and production costs which gives the APAC region an edge in the pricing segment of the market.
So what lies ahead in this vendor war?
For the most part, vendors in the AMSE market are expected to enter and focus on the APAC region because of the high growth potential. As more and more companies center themselves in countries within the region, thereby gaining access to cheaper material and manufacturing costs, there will be a need for regulated product pricing if vendors hope to remain profitable. This in turn should have a calming effect on the market and leave both manufacturers and end-users breathing a little easier for the next few years.
For more information, view our 2012-2016 Global Air Monitoring and Sampling Equipment Market report.
