The report says that revenue in 2013 for hazardous area equipment is forecast to reach €2.67 billion, growing at 5.2%, half the rate of 2012. However, prospects for next year are predicted to improve when revenue should reach €2.91billion, representing growth of 8.9%.
In general, unit shipments are forecast to grow at a slightly higher rate reflecting overall price pressure. One exception to this growth is said to be low-voltage motors, which are subject to increased product development and material costs as they are increasingly required to meet legislation that demands greater operating efficiency.
The market for hazardous area equipment is influenced by capital expenditure in the oil and gas industry, said John Morse, senior analyst for discrete automation and author of the report. “Not all orders for any specific project are issued the moment a project is awarded. Orders are scheduled throughout the build, and so have the effect of delaying and smoothing out the demand pattern.
“The factors influencing the predicted decline in EMEA growth became clear from interviews conducted during research for the report. During 2011 and 2012, uncertainty of the euro, the troubled economies of some EU countries and political unrest in parts of the Middle East and North Africa, all resulted in projects being temporarily put on hold. Such factors were forecast to affect orders in 2013, when those projects would normally be in progress.”
The report concludes that the longer-term prospects for hazardous area equipment sales in EMEA look bright. Projects delayed during the latter part of 2012 are predicted to revive during this year, generating the return to greater revenue growth from 2014 to 2016.