Post-crisis stagnation of Extrusion Machines market is over
The European market for extrusion machines increased by 2.2% in the past year. The tender crop of the boom in the industry is expected to accelerate further in the coming years. According to a new study by Interconnection Consulting, by 2020 sales are expected to increase annually by 3.0% on average.
India and China will become competitors
The European market for extrusion machines has had a strong headwind in recent years. In addition to the economic crisis, China and India also entered the market with cheap PVC products and have become serious competition for the European producers. Nevertheless, the extrusion machines markets of Italy (+ 2.2%, Benelux (+ 1.3%) were able to recover again in 2016. For France (-2.7%) a stronger increase is forecast for 2017. Germany and Great Britain achieved a higher growth rate of 5.3% and 4.9% respectively. A country with very good prospects is Poland, where the industry will grow by 5.7% annually by 2020 and then implement around 48 million Euros.
Pipe extrusions are crisis-proof
As far as the product group is concerned, the market is divided into three main groups (window profiles, pipe extrusion, sheet extrusion). The total number of sold extrusion machines in Western Europe amounted to 5,538 in 2016. Tube extrusion machines ranked first with 38.8% of the total number. The reason for favoring this product group is, on the one hand, the favorable price and, on the other hand, its independence from economic changes: "While other product groups are cyclical, pipes are relatively independent of political and economic changes," explains Maria Shvets, author of the study. It is therefore no surprise that the market for tube extrusion is particularly dominant in countries such as Turkey with 64.7%. Extrusion machines for window profiles had a market share of 27.7% in 2016. The sheet extrusion reached a proportion of 16.7%.
Innovation instead of price competition
The market for extrusion machines is mediocre. The top three companies share 31.9% of the market as a whole in 2016, thereby increasing their market share by one percent. The top ten companies also gained market shares (51.5%). The industry is driven by innovation, which also means that prices will continue to rise in the future.