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This study analyzes the temperature sensor and transmitter market for the Americas. The study was conducted by Flow Research and Ducker Worldwide. This study includes a technology and product analysis, market share and market size data, and also provides in-depth segmentation of the market by various product and geographic categories. It also includes detailed market growth projections through 2004 for both temperature sensors and temperature transmitters. Detailed market strategies are provided for supplier, and more than fifty companies are profiled.
The methodology for this study consists of a "bottom-up" approach. Flow-Ducker Research obtained detailed information about the temperature business of temperature and sensor suppliers. This information was then compiled into a picture of the total market. Most of the information for this study was obtained through more than 250 interviews with temperature sensor and transmitter suppliers. Detailed business information was obtained for 98 temperature sensor companies and 28 temperature transmitter companies in the United States, Canada, and Latin America.
Another part of this study is devoted to an OEM and end-user analysis of temperature sensor and transmitter users. Flow-Ducker Research used a combination of methods to conduct 132 interviews, including phone interviews and mailed, faxed, and e-mailed surveys. Goals of the survey are to get an understanding of installed base, to find out user purchasing plans, and to determine what problems users are having with their sensors and transmitters. Another important goal is to provide confirming evidence for the supplier data.
This study analyzes the temperature sensor and temperature transmitter market in the United States, Canada, and Latin America. The objectives of the study are as follows:
This study is unique in that both extensive supplier analysis and end-user analysis was conducted. This proved very useful, as the end-user analysis provided confirmation for the supplier data. The end-user analysis also proved very useful in doing market forecasts. The four most important components of the methodology are as follows:
These four components are discussed in the following sections.
At the beginning of the study, more than 400 suppliers were contacted to find out what information they would like to see in this study. Flow Research prepared an Input Questionnaire that asked companies what information they would like to see in the study. Companies were asked to rank the information in importance on a scale from 1 to 5. Fifty responses were received from sensor and transmitter companies. These results were tabulated, and used as a guide in conducting the study. The Input Questionnaire is reprinted in Appendix A. Interestingly, the information that is most important to suppliers of temperature sensors and transmitters is total market size. Market shares were also ranked high in importance. For this reason, Flow-Ducker Research devoted a great deal of effort to obtaining accurate market size and market share figures. Another area ranked very high by suppliers is the technology and product analysis. In response to this, Flow-Ducker Research included an entire chapter on this subject, chapter three. Suppliers were asked in the Input Questionnaire to rank in importance questions that would be asked in the end-user survey. They were also asked to specify any questions or subjects they would like to have included in the end-user survey. Flow Research conducted some follow-up interviews with suppliers to obtain some additional input for the survey. This entire process was very fruitful, and many suggestions from suppliers were incorporated directly into the end-user survey.
Market size and market shares were determined through a variety of methods. The primary method of determining market size was through interviews conducted with temperature sensor and transmitter suppliers. Flow-Ducker Research conducted more than 250 interviews with suppliers of temperature sensors and transmitters during the course of the study. Most companies were quite forthcoming about revenue figures. Revenue numbers provided by companies were also cross-checked with other sources, including business directories, interviews with other knowledgeable persons, and other publicly available data sources. In most cases, Flow-Ducker Research conducted multiple interviews to get the most accurate understanding of each company. Every effort was made to obtain the most accurate information possible about each company.
Most interviews were conducted by telephone. However, some onsite visits were conducted. In addition, Flow-Ducker Research visited the International Society for Control and Instrumentation (ISA) in Philadelphia in October 1999, where many temperature suppliers were represented. Many temperature sensors, including thermocouples, RTDs, thermistors, and infrared thermometers, were on display at this show. Many different types of temperature transmitters were also on display at ISA in Philadelphia.
In those few cases where companies chose not to participate in the study, Flow-Ducker Research used alternative sources of information. These include business directories, interviews with other knowledgeable persons, and other publicly available information sources. Product information was requested from every company, and the Internet was also used as a source of information.
Total market size for temperature sensors and transmitters was determined by aggregating the total sales numbers for individual companies into a total market size. Most sales information from individual companies was in dollars rather than units, although some companies also provided unit numbers. Average selling price was used as a means for calculating unit numbers for both temperature sensors and transmitters. Some allowance was made in determining market size for "other" companies that were not interviewed. This is especially important for temperature sensors, where there are a number of small companies who supply this market.
In most cases, the persons interviewed for this study are either the product manager or marketing manager for temperature sensors or transmitters. In some cases, other persons were interviewed, including company presidents or CEOs. In larger companies, application engineers were often interviewed first to get a better understanding of company products before marketing and product managers were interviewed. Flow-Ducker Research wishes to thank the many companies who were so diligent in providing information to make this study both comprehensive and complete.
In aggregating the information for the total sensor and transmitter markets, Flow-Ducker Research obtained detailed information about the sensor and transmitter business for each company. While thermowells are not temperature sensors, they are included as an important accessory item. For temperature sensors, this includes the following information:
Flow-Ducker Research obtained this data for 98 temperature sensor companies.
For temperature transmitters, Flow-Ducker Research obtained the following information for each company:
Flow-Ducker Research obtained this data for 28 temperature transmitter companies.
Flow-Ducker Research used a combination of methods in conducting the OEM and end-user analysis. The effort included telephone interviews, along with mailed, faxed, and emailed surveys. Ducker Research conducted 84 interviews with OEMs and end-users of temperature sensors and transmitters. In addition to these phone interviews, 48 mailed, faxed, and emailed surveys were received. The total number of end-user and OEM surveys conducted by all these methods was 132.
As part of the end-user survey effort, Instrumentation & Control Systems (I&CS) mailed out end-user surveys to I&CS subscribers. Twenty-three completed questionnaires were received. In addition to this, Flow Research faxed surveys to users of temperature sensors and transmitters. Twenty-five responses were received. The responses from these two groups total 48.
Responses from the phone, mailed, and faxed surveys were combined together to yield the results that appear in Chapter eight. One important purpose of the survey was to provide data for determining the installed base of temperature sensors and transmitters by type. Other questions dealt with applications, projected spending patterns, and levels of satisfaction with temperature sensors and transmitters. Flow-Ducker Research tried to determine the reasons behind spending plans, whenever possible. The end-user survey is discussed in more detail in Chapter eight.
Besides presenting the results of the OEM and end-user survey, Flow-Ducker Research compared the results of the user survey with the supplier data. The end-user survey data confirmed the supplier data in nearly every case. This greatly strengthens the supplier data, and provides an additional base of support that is lacking in most studies of this type. By integrating the supplier and end-user data, Flow-Ducker Research is able to present a balanced picture of the market that is supported from several independent perspectives. This greatly enhances the value of the data presented.
A number of factors were taken into account in generating forecasts. Supplier of temperature sensors and transmitters were asked individually how fast their companies are growing. Suppliers were also asked to project future sales for their products and for the industry as a whole. OEM and end-user survey data was used, especially data relating to future spending plans by users. Industry growth for the 17 industries covered in this study was considered. Other factors include economic growth in the United States, Canada, and Latin American countries, the recovering Asian economies, and past growth by temperature sensors and transmitters. All forecasts are in real, not current, dollars, meaning that the effects of inflation are disregarded. Forecasting methods are described in more detail in Chapters five and seven.
This study includes the following geographic regions:
North America is composed of the following countries:
Latin America is composed of the following geographic regions:
The countries of Central America include the following:
The countries of South America include the following
This study includes the process industries, which are as follows:
It also includes the following non-process industries:
Temperature transmitter and sensor suppliers use a variety of methods to get their products to end-users. Many of the larger companies have direct sales forces. Others use independent representatives who only represent one company for each type of product line. Distributors are another sales channel. One disadvantage of using distributors, however, is that manufacturers have less control over purchase price. They also have less control over how their products are portrayed and sold when distributors are used.
Because of the close connection between temperature transmitters and temperature sensors, it is very common for temperature transmitter companies to resell temperature sensors, especially thermocouples and RTDs. Some temperature transmitter companies such as Rosemount rely on a mixture of manufactured and resold temperature sensors. Other companies such as Honeywell, ABB, and Foxboro rely almost exclusively on temperature sensors that are purchased from other companies and resold with their transmitters.
Just as many temperature transmitter suppliers buy and resell temperature sensors, so many temperature sensor suppliers buy and resell temperature transmitters. This is more likely to occur at the low end of temperature transmitters. Low cost, analog, and programmable temperature transmitters are more likely to be resold than smart and high-tier transmitters. This strategy is also more effective for companies that sell to the process industries, since temperature transmitters are more widely used in the process industries than in the non-process industries.
The results of the Flow-Ducker Research OEM and end-user survey demonstrate the effectiveness of offering temperature sensors and transmitters together. When asked if they ever buy temperature sensors and transmitters together, 87 percent of respondents say they do. When asked what percent of their sensors are bought at the same time as the transmitters, the average answer is 63 percent. In addition to this, 74 percent of respondents say they buy sensors and transmitters from the same company. Sensor suppliers who do not offer transmitters, and transmitter suppliers do not offer sensors, may be missing a golden opportunity.
The Temperature Sensor and Transmitter Market in the Americas is the result of a partnership between Flow Research of Wakefield, Massachusetts and Ducker Research of Bloomfield Hills, Michigan. The lead analyst in the project is Jesse Yoder of Flow Research. Flow Research specializes in market research on instrumentation and process control subjects. Dr. Yoder did the supplier interviews, data analysis, forecasting, and writing of the study.
The end-user survey was carried out by Ducker Research, under the leadership of Scott Shober. Nick Limb of Ducker Research served as project manager. Michael Cushing, who has over ten years experience in the temperature industry, served as reader and technical consultant.
Flow Research is the only market research company whose primary mission is to research temperature and flowmeter markets. The lead analyst for this study, Jesse Yoder of Flow Research, has over 13 years experience writing about and analyzing process control and instrumentation markets. He has written over 20 market research studies.
Ducker Research has 35 years of experience in researching industrial and business markets. This experience gives Ducker Research access to a wide array of industry knowledge, technology awareness and current market trends.
Today, the firm has a staff of 65 in its Bloomfield Hills, Michigan offices. This staff includes 30 professionals in engineering and scientific disciplines. In addition, the company has a dedicated, full-time staff of 35 experienced interviewers and support staff. Ducker maintains the capabilities to conduct all phases of a research project, without outside support, in its offices.
Ducker Worldwide services a worldwide clientele through its Michigan-based staff and through its offices and partner firms throughout the world. In addition to Ducker's international offices and capabilities, on staff in Detroit are several individuals with multi-lingual capabilities. Several staff members (analysts and project managers) are fluent in French, Spanish, Italian, German and Japanese. With this capability, coupled with offices overseas and many long-standing relationships with partner firms, Ducker has successfully studied world markets for over three decades.
Flow Research and Ducker Worldwide maintain an ongoing interest in the temperature industry. We are prepared to do further research that builds on the comprehensive research that is detailed in this study. Companies that would like further detailed research are invited to call Flow Research or Ducker Worldwide for more information or to discuss specific research needs.
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