The Impact of Pneumatic cylinders on the Pneumatic Equipment Market

The market for pneumatic equipment has been witnessing a steady growth for the last few years across the world. This has been attributed to the rapid pace of industrialization in Asian countries as well as the evolving market in the U.S. and Europe. As per estimates, by 2024, the Pneumatic equipment market is predicted to reach the total valuation of $55.89 billion with a CAGR of 5.4 percent. North America is the largest market for pneumatic equipment and contributes to more than 44 percent of the market revenue. Many industries such as cement, paper & pulp, oil & gas, mining etc are using pneumatic equipment on a regular basis and are driving the growth of the market.

Many other developing countries such as Brazil, Chile, and India are also seeing growth in the market for pneumatic equipment as many new as well as established companies are entering these economies through mergers and acquisitions.

What is Pneumatic cylinder equipment?

The mechanical devices that use the power of compressed gas in order to produce a reciprocating linear force are called Pneumatic cylinder equipment. They are also sometimes referred to as air cylinders.

These cylinders force the piston to move in a required direction, the piston rod forces the compressed air to move. Since these cylinders are clean, quiet and can store liquid fluid in smaller space, they are referred to as pneumatics.

Market Analysis and Size

The pneumatic equipment market will continue to be dominated by Europe until 2020. The other regions such as the Middle East and Africa along with Asia Pacific regions will also see growth at a faster annual rate till 2022.

As more and more industries are going to focus on increasing productivity and reducing harmful manual tasks, the demand for pneumatic equipment will increase substantially.

In 2018, the value of the pneumatic equipment market was estimated at $40.8 billion and in 2024, it is predicted to reach the valuation of $55.90 billion.

With the increasing awareness regarding the safety of mine workers in the developed regions such as Western Europe and North America, the demand for pneumatic cylinders is going to increase. This trend is signaling towards an increase in the partnership with automation suppliers of this equipment.

Growth depending on sectors and regions 

More suppliers are entering Chile, Brazil, and India due to higher demand for this equipment. Due to the demand for pneumatic equipment in the Middle East, Africa, and the Asia Pacific region, the opportunities for global service providers in these markets has risen.

To improve security and safety in various sectors such as oil exploration, offshore mining, mine safety etc, these regions are leading the trend of automation of pneumatic equipment and are leaving behind the conventional methods that were unsafe and harmful.

The demand for this equipment is going to be sustained by the upcoming greenfield and brownfield projects in various sectors such as power generation and the oil & gas industry.

The other factors that are contributing to the growth of the pneumatic equipment market are the automation and miniaturization of the equipment design along with technological advancements, which enhance its efficiency manifolds.

Procurement strategies 

The major industries that utilize this equipment are mining, chemicals, and oil & gas, contributing to almost 49 percent of the market share. The increasing consumption of processed and packaged food is also driving the growth of pneumatic cylinders market sales.

With the increasing needs and demands of the customer, more consumers are preferring global suppliers for higher quality. The global suppliers also help in the standardization of this equipment and in the reduction of the delivery times. Only a couple of vendors are selected as they can help in improving the design of the machines in an efficient manner. As the number of suppliers for pneumatic cylinders would be limited, it will also improve the negotiation powers.

Engagement Model 

The engagement model undertaken in the pneumatic equipment market is a straightforward process and involves the following steps: -

- Institutional buyers prepare a list comprising of the names of the preferred suppliers of components. The basis of preparation of this list is either advice from experts or previous user experience.

-  Then this list is handed over to the integrators. Instructions are forwarded to them to use components only from prescribed vendors.

-   The process of sourcing and procurement of the components is managed by the integrators on behalf of the customers.

-   If there are any issues related to warranty or repair, they are also handled by the integrators. Therefore, integrators play an important role in the engagement model by being the single point of contact for any problem faced by the customers.

The demand for pneumatic equipment is witnessing a steady growth across various regions. In the absence of any serious challenges facing the pneumatic equipment market, it is expected to register a steady growth over the next few years as well. 
The Impact of Pneumatic cylinders on the Pneumatic Equipment Market The Impact of Pneumatic cylinders on the Pneumatic Equipment Market Reviewed by Pravesh Kumar Maurya on March 18, 2019 Rating: 5

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