Frost & Sullivan: Cost-effectiveness continues to drive opportunities for the global measurement gages market
The global measurement gages market has limited technological advancement, thus pricing strategy is a key differentiator for companies operating in this space. Realizing this, manufacturers are wooing price-sensitive end users by offshoring their manufacturing to cost-efficient countries in Asia.
To continue rolling out cost-effective products, market participants are expanding their manufacturing capabilities in Asia-Pacific (APAC), which already accounts for 70 percent of global measurement gages production. APAC will also remain the key revenue-generating market, followed by North America and Europe.
The new study from Frost & Sullivan, Analysis of the Global Measurement Gages Market, finds that the market earned revenues of $178.8 million in 2013 and estimates this to reach $201.8 million in 2017. The analysis covers height gages, depth gages, plug-and-bore gages, and ring gages.
Increasing industrialization in APAC as well as the growth of the automotive industry and machine shops in the region, continue to fuel the demand for measurement gages. End users are particularly looking for simple gages as they have a limited budget allocated towards inspection and measurement tools.
Nonetheless, the presence of established market participants limits business opportunities for smaller-sized companies. Furthermore, the availability of low-cost coordinate measuring machines (CMMs) and scanners hinders the growth of the measurement gages market in North America and Europe.
Although established market participants dominate the market, there are several Chinese measurement gages manufacturers that have made inroads into the APAC market with their low cost products.” explained Frost & Sullivan Test and Measurement Senior Research Analyst Aravind Govindan. “Research indicates that a lack of marketing capabilities similar to some of their larger counterparts is likely to restrict the growth and business potential of some of the smaller participants.”
Brand visibility is evaluated as a key competitive criterion, which has led to a greater focus on this by market participants through the use of online channels and eCommerce websites as retailing points for measurement gages.