Engineering and Industrial Goods

Vito Graziano

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Vito Graziano, who joined Interconnection in 2016, is an expert for industry analyses and the development of forecast models. In addition to his analytical competence, his international customers benefit from his perfect language skills such as English, Italian, French, German, Spanish, Russian, Chinese, and even Korean. Prior to Interconnection, Mr. Graziano worked for a Chinese industrial company in marketing and sales in Southern China. He graduated with a degree in Politics and Economics.

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IC News

Global Market For Blow Moulding Machines Recovers From The Crisis

The pandemic also caused a slump in the global market for blow moulding and blow moulding machines. The decline in sales in 2020 was over 7%. However, 2021 will see an increase of 3.9% for the global market, as a study by Interconnection Consulting shows.

China Is The Growth Engine

Blow moulding can be used to produce hollow plastic components. Important products include plastic bottles, plastic canisters, washing water containers, fuel tanks, etc. The global market for blow moulding & machinery is led by the China & Taiwan region, which accounts for about one fifth of total sales. China will continue to determine the dynamics of the global market in the coming years. The annual growth rate will be 8.6% in value until 2024, as this study shows. With the new 5-year plan, China will invest heavily in the construction of new hospitals and the expansion of medical care. At the same time, further urbanisation will be tackled, which will also benefit the blow moulding industry in many areas. Besides China, India is an important growth market for the industry. The market for blow moulding machines will increase by 4.2% this year, although the sales level of 2019 will not be reached again until 2022 at the earliest. The beverage sector in particular, with a share of around 48%, dominates the market in India. In terms of total sales, the USA & Canada region is the strongest in the world. But even there, the dynamic growth of the industry was abruptly halted by the pandemic. In the long term, however, the market for blow moulding machines will grow by 5.6% annually until 2024. The fastest-growing markets in the USA & Canada are the cosmetics sector, with  an annual growth of 8.2%, pharmaceuticals and food. In terms of machine types, stretch blow moulding machines (linear and rotary) dominate the market worldwide with 50.8%. This is followed by injection blow moulding machines with 21% of the total market and extrusion blow moulding machines with 18.2%. The blow moulding segment reached a market volume of €535.7 million in 2019. Here again, the China & Taiwan region leads with a 19.2% share of sales, followed by India (14.7%) and the USA & Canada region (13.5%). The strongest dynamics in this area can be seen in the Indian and African markets.

Tougher Competition for Market Leaders

The top ten companies worldwide hold about half of the total market (49.2%). Extrusion blow moulding machines were less affected by the crisis. Accordingly, manufacturers in this segment were also able to gain market share, such as Kautex. The Japanese injection stretch blow-moulding machine manufacturer Nissei was also able to strongly expand its market shares. The undisputed market leader, however, remains Krones. Other important manufacturers are SIPA or KHS Corpoplast.

Sustainability Is The Industry’s Key Topic

A major issue for the blow moulding industry is the global trend towards banning the use of single-use plastic materials and the focus on sustainability and recyclable plastic materials. Meanwhile, the trend against the production of single-use bottles and disposable products has reached almost all parts of the world. China bans single-use plastic in some provinces. In the USA, 95 state laws on plastic have been passed. In the EU, at least 25% of PET plastic bottles are to be be made of recycled plastic by 2025. By 2030, this mandatory target is to be raised to 30%. Nevertheless, the market for blow-moulded plastic will continue to grow, especially in the beverage market. “A steadily growing population in India, Africa and China, and the increasing middle class in these regions of the world are responsible for this increase,” explains Daniel Kollar, the author of the study.

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European Blow Moulding Industry On The Tough Road Back

The European blow moulding market lost 7.8% of its value last year due to the pandemic. A slight recovery is now forecast for 2021, with an increase of 3.2% compared to 2020, according to a study by Interconnection Consulting.

Blow moulding can be used to produce hollow plastic components. Important products are for example plastic bottles, plastic canisters, washing water containers, fuel tanks, etc. Even before the crisis, the European market had the weakest growth dynamics compared to all other regions worldwide. To make matters worse, the regions of Western and Southern Europe in particular were more severely affected by the pandemic than many other regions in the world and recorded a decline of 11.9% and 9.2% respectively. Consequently, the greatest momentum in the future will not come from these regions, but from the CEE region and Eastern Europe. In the CEE countries, the annual increase forecast until 2024 is 5.3%, with the study also predicting similar dynamics in Eastern Europe. For Western and Southern European countries, it will take at least until 2023 before the market level of 2019 is reached again. In terms of machine types, stretch blow moulding machines (linear and rotary) dominate the market across Europe with 60.9%. This is followed by extrusion blow moulding machines with around a quarter (22.5%) of the total market, and injection blow moulding machines with a share of around one-sixth of the total market. Extrusion blow moulding machines in particular were able to gain market share in 2020, as they lost less than other product segments with a decline in sales of 6.2%.

Tougher Competition For Market Leaders

Accordingly, producers in the extrusion blow-moulding machine segment also gained market share, such as BBM. The Japanese injection stretch blow-moulding machine manufacturer Nissei was also able to strongly expand its market share in Europe. The undisputed market leader, however, remains Krones. The top ten companies in Europe hold more than half of the total market (57.9%).

Sustainability Is An Opportunity For Europe

A major issue for the blow-moulding industry is the global trend towards banning the use of single-use plastic materials and the focus on sustainability and recyclable plastic materials. Especially the highly developed industrialised countries in Europe – favoured by strict laws and regulations – are leading the way. In the EU, at least 25% of PET plastic bottles are to be made of recycled plastic by 2025. By 2030, this mandatory target is to be increased to 30%. “Big brands are being forced to minimise the use of non-recyclable single-use plastic materials,” explains Daniel Kollar, the author of the study. Increasingly strict laws are also leading to bioplastic packaging gaining more and more ground. However, due to the diversity in the material, new blow moulds as well as blow moulding machines are needed for processing, Kollar explains. “The trend is driving the development of the technology and the market.“

 

Regions analyzed:

Northwestern Europe (UK, Ireland, Norway, Sweden, Finland, Denmark, Iceland)

Western Europe (France, Belgium, the Netherlands, Luxembourg)

Central Europe (Germany, Austria, Switzerland)

Eastern Europe (Poland, Hungary, the Czech Republic, Slovenia, Slovakia, the Baltics, Bulgaria, Russia, the Ukraine, CIS)

Southern Europe (Spain, Portugal, Greece, Italy)

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China Continues to Fuel Hot Runner Systems

On account of the positive economic trends in Europe and China, global sales in the hot runner systems market grew by 8.2% in 2017. However, the intensifying trade war between China and the USA, as well as the EU, is dampening prospects. According to a study by Interconnection, average annual growth through 2021 is expected to be only 5.7%. Overall, the global market volume was EUR 2.4 billion.

 

Quality Standards on the Rise in China

In spite of the strong growth, the times of double-digit growth rates in the hot runner systems market seem to be a thing of the past. Markets such as Central Europe and the USA have matured to a point that impedes high-level growth. China was once again the clear driving force in the market, with an 11.8% growth rate and a market volume of EUR 735 million. With a 30.7% share of global sales, China thus remains the largest market for hot runner systems – and its dominance is only expected to increase. The Chinese market is benefiting from both lower production costs and rising quality standards. The growth in China is being fueled to a large extent by the auto industry, though it is not just a matter of production. China is also witnessing a rising demand for cars due to an increase in disposable income. So it is not surprising that rising production costs are forcing production to drift more and more to India from China.

 

Protectionism Helping the US Auto Industry

The North American market grew 6.2% in 2017, a slight increase over the previous year. The market volume was EUR 432.6 million. Nonetheless, the slowing economic trends are showing all the signs of a saturated market. Even if the current economic conditions are sound, forecasts have been downgraded on account of Trump’s protectionist policies. And yet the US auto industry is actually expected to benefit from Trump’s protectionism and will remain the driving force behind the hot runner sector. Interconnection forecasts a 4.8% average annual growth in the sector through 2021.

 

Eastern Europe Compensates for Brexit

In Europe, the market volume in 2017 was EUR 639.1 million following an uptick in growth to 6.3%. The economic boom in Eastern, Central, and Southern Europe was thereby able to more than make up for the weak developments in Great Britain, which has been stagnating on account of Brexit. Eastern Europe’s growth in 2017 was 8.1% and will continue to stimulate European growth. Average annual growth through 2021 is expected to be 5.9%. In Europe as well, the market for hot runner systems is also being fueled by the auto industry. The higher production volume in Eastern and Southern Europe, along with the increasing number of new car models, is responsible for the upsurge in the industry.

 

 

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Urbanization in Asia Fueling Thermoplastic Industry

The global market for the use of polyethylene terephthalate (PET) machines and molds will increase by 7.2% in 2018. According to a new study by Interconnection Consulting, this significant growth is expected to continue in the years come, with average annual growth through 2021 estimated at 7.0%.

 

Beverage Market Enlivening the PET Market

The largest force in the PET market is the food and beverage industry, which continues to replace more and more glass and other materials with PET bottles. With a market value of EUR 1.5 billion and a 7.5% growth rate, beverage packaging represents the largest share of the PET industry. By 2021, the beverage industry’s market share is expected to climb from 54.9% to 57.2%. Though it has a relatively small market share of 9.7%, cosmetics is currently considered the dynamo of the market, with a 7.7% projected annual growth rate through 2021.

 

Asia the Global Driving Force

The highest growth rates can be found in the emerging markets of China (+9.4%), India (+10.0%), and Southeast Asia (+9.6%). China is the largest market in Asia, and on account of above-average growth in the future, its current global share of 16.7% will to continue to expand and is expected to hit 17.3% by 2021. Chinese growth is largely driven by the heavy migration to the cities. Increased spending on food has led to strong growth in the food and beverage industry, which, with a share of 74.6%, also constitutes the most important segment of the Chinese market.

 

New Lifestyle Boosts PET Industry

America is the second-largest market for PET machines and molds, with a growth of 6.1% last year. This upward trend is set to continue, reaching a CAGR of 6.4% between 2018 and 2021. New lifestyles and critical consumers are largely behind the sharp rise in the highly diversifying market for PET blow molds especially in the USA and Canada. Europe’s market posted comparatively moderate growth rates of 2.2% at a market volume of EUR 586.7 million. No individual national market in Europe can keep pace with the rate of global growth, even though growth rates are expected to cool back down somewhat in the upcoming years (CAGR of 3.8%).

 

Tight Competition

The largest producers in the PET mold market hail from Germany, Italy, Japan, France, China, and the USA. The stretch blow molding machine market is dominated by Germany and France. The linear stretch blow molding market is dominated by the Japanese company Nissei ASB.

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Chinas Glasmaschinenmarkt bremst sich ein

Der globale Markt für Glasmaschinen betrug 2017 rund 3,1 Mrd. Euro und wird bis 2020 auf 3,5 Mrd. Euro anwachsen. Insgesamt stieg der Markt im vergangenen Jahr weltweit um 2,0%. Aufgrund der niedrigen Arbeitskosten sind vor allem Osteuropa, Indien, Asien und Lateinamerika die Märkte mit dem größten Wachstum.

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Loader Cranes Soon Return to Growth

The world market for loader cranes is expected to decline by 9.4% this year. However, a new study by Interconnection Consulting expects a fast recovery of the industry. The market volume is expected to return to pre-crisis levels in 2023.

The market for loader cranes is very dependent on the GDP in the individual countries as well as on the construction industry. The picture is heterogeneous in the individual regions of the world. While the US and Europe have seen strong growth in residential construction in recent years, Japan and Australia have seen a negative development in this sector. Other countries, such as China or Brazil, have increased their output, especially in the non-residential construction sector. Overall, the construction projects worldwide caused the market for loader cranes to grow by an average of 2.3 annually between 2016 and 2019. The largest market for loader cranes is Europe with a share of 30.2%, ahead of the USA with 21.1% and China with 17.4%. Like many other regions, the European market is expected to shrink this year in the double-digit range, as are China (-11.3%), Australia and Japan. The US is doing slightly better, with an expected decline of less than seven percent.

Different Speeds

The post-crisis renaissance of the European market will take place in different regions at different speeds. Germany will recover fastest. By 2023, the market volume there will already have reached a significantly higher level than before the crisis. In France, however, the catching-up process will take longer. Between 2020 and 2023 the market there will decline by -3.1% per year on average.

Kuckle Booms Dominate

Kuckle booms are the dominant product group with a market share of 85.8%. The other two important product groups are recycling cranes with a market share of 7.6% and timber cranes. On top of their dominance, the kuckle boom cranes are also the product group with the highest growth rate. Kuckle boom cranes are set to grow by 2.8% per year in value until 2023. The boom for this segment can be seen all over the world. Th sales share of this product is above 80 percent in all regions of the world. Cranes with a height of 10-20 metres are the strongest segment with a sales volume of 36.5%. This height is even more dominant  in China than in most other regions of the world, where this segment accounts for almost three quarters of all cranes. By comparison, the share of this segment in Europe is only 22.8%, holding the third place. Here, cranes up to a height of 10 metres hold first place with around a third of sales.

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Eastern Europe is Reliable Market for Profile Machines

The global market for profile machines for window and door production was €896.9 million in 2020, 0.7% lower than in 2019. This market experienced strong growth in the last few years before the pandemic and was not hit as hard as other sectors. The market will also catch up quickly once the crisis is over, as a new study by Interconnection Consulting shows. 

Europe Leads the Way out of the Crisis

The global market for profile machines for window and door production is linked to the sales situation and the development of the window market. In Europe, the CEE region has seen itself as a motor for the industry in recent years. The region is responsible for 30.1% of the global output of profile machines. The growth of the industry in this region was up to ten per cent in the years before Corona, also due to the demand for PVC machines from Germany. In 2019, the CEE region displayed a growth of around seven per cent. While the outlook for the European markets is good even after the crisis with good expected growth rates, the other side of the Atlantic is in for less rosy times. Growth in the NAFTA region as well as in Latin America will be less dynamic than in Europe. In Asia, China is the clear market leader with a share of over 70 per cent. The young market for profile machines in Asia is still dominated by local manufacturers. Growth rates in the Asia-Pacific region were 7.2% in 2019, the highest in the world. The market there benefits not only from cheaper production costs, but also from rising quality standards and network effects between window and profile manufacturers. Of the three machine types (PVC, aluminium, steel), PVC has the greatest growth potential for the future and the largest market share with over 60 percent. One driver for PVC profile machines is the Chinese window market, where PVC is the most popular window frame material.

New Global Players from China

The market for profile machines is highly concentrated. The top ten companies worldwide occupy more than 50 percent (56.9%) of the world market. The market is dominated by European companies and here again mainly by German companies like Urban, Rotox, Schirmer and Italian companies like Voilàp, FOM Group or Graf Synergy, the Italian PVC specialist. Apart from other big European players, there are only US companies and Turkish manufacturers that are involved in the world market. Also in China, after dominating their local market, some manufacturers are trying to jump into the global market like Zhongwang or Xingfa, which will make competition tougher worldwide in the future.

 

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Leading Companies trust in Interconnection Consulting

Admonter

At the IC Impulsworkhop "Sales Optimization" we appreciate not only the practical relevance, but also the eloquent language and the perfect rhetoric. The most important benefit for our company was the sales pipeline. Adrian Capellarie (Head of Sales Admonter Holzindustrie)

Deutscher Holzfertigbau Verband

Interconnection provides us with the prefabricated house study a plausible and veritable data basis for the analysis of the actual situation in the prefabricated house market and beyond for the assessment of the future market development. We are happy to use this interpreted data for our lobbying and everyday work.

Thomas Schäfer (Managing Director, Deutscher Holzfertigbau-Verband)

ELK

The prefabricated housing study by Interconnection Consulting shows a real picture of the actual market situation and forms a valuable basis for our strategic decisions.

Gerhard Schuller (CFO ELK)

Epson

EPSON is satisfied with the Interconnection's way of communication with the market and with clients. EPSON is also appriciate the Interconnection's continuous work trying to aim the report to be at the higher level. As a result, EPSON rely on Interconnection data, for the market of POS Printers and Systems.

T.Murakami (Brand Management, Seiko Epson Corporation)

Gaulhofer

I appreciate on the forum "Impulsworkshop Vertriebsoptimierung" the practical relevance of Peter Berger linked with his practical examples. I also liked the sovereign presentation style. The most important benefit was for me, on the one hand refresh of methods and also the sales management tools that were shown. Ing. Dietmar Hammer (Head of Product Management Gaulhofer)

Kontron

The most important benefit of the Impulsworkshop "sales optimization" was in my view the procedure of the definition of strengths and the entire sales process. Mr. Berger is very competent and professional. Fabian Freund (Sales Manager, Kontron Austria)

Österreichs Personaldienstleister

The sales management tool ZAIS has become indispensable for many Austrian temporary staffing providers for fast and correct sales management decisions. A tailor-made online cockpit provides comprehensive monthly figures and data on temporary work and the labor market in Austria, while at the same time impressing with its overview and intuitive user guidance. Interconnection Consulting has consider individually to all user needs during development process and also convinces with fast response times during operation.

Dr. Gertraud Höltl (Generalsekretärin Österreichs Personal Dienstleister)

Saint Gobain

Long experience and deep understanding of the construciton industry markets make up the quality of the IC studies. Interconnection Consulting is a constant companion concerning the assessment of markets and helpful for decision-making.

Bernd Blümmers (Directeur General, Saint-Gobain Solar Systems, Central Europe, Aachen)

Salamander

Interconnection Consulting reports deliver a worthfull external perspective and are so a good contrast with regards to our internal market point of views.

Pedro Posada (CEO Salamander Industrial Products Spain)

Scandinavian Business Seating

The IC Report gives a very good overview of the Western European office furniture market, in a well-structured way. The data is helpful to better understand the market developments and drivers.

Beatrice Sotelo (Director Business Development , Scandinavian Business Seating)

Schneider Electric

Under a short time constraint, Interconnection was able to deliver an outstanding study that exceeded my expectation in terms of quality and market breadth. I highly recommend Interconnection to anyone in need of market research.

Jeff Canterberry (Director of Strategy and M&A, Schneider Electric)

Sodexo

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