Actuators Market Analysis

Actuators Market (Global, 2023)

Introduction

The market for electric servo-motors is an important part of the automation and control systems market. It plays a key role in many industries, including manufacturing, automobile, aeronautics and automation. For the precise control of mechanical systems, it is essential to have the energy transformed into movement. The more energy is transformed into movement, the greater the efficiency, the greater the accuracy and the greater the reliability of the operation. In view of the increasing use of automation for increasing productivity and reducing operating costs, the demand for advanced motors will grow considerably. The product range on this market is very wide and includes electric, pneumatic and hydraulic servo-motors, each of which has its own particular advantages for a particular application. The integration of smart and Internet of Things (IoT) technology in the systems is also fostering the development of more complex and responsive solutions. In view of the dynamic nature of this market, which is characterized by rapid technological developments, changing customer requirements and increasing regulatory requirements, the market for electric servo-motors is facing the need for continuous innovation.

PESTLE Analysis

Political

The market for electric cylinders in 2023 will be influenced by a number of political factors, including government regulations and policies that promote automation and industrial efficiency. The European Union, for example, has adopted a Machinery Directive, which stipulates that all machinery, including electric cylinders, must meet a set of safety and performance standards. The directive applies to all of the 150,000 manufacturers of machinery in the EU, requiring them to meet a set of safety standards that are designed to enhance workplace safety and productivity.

Economic

The economic outlook for the global valve market in 2023 is characterized by volatile material costs and labor market conditions. The average cost of raw materials for valve production has risen by 12% over the previous year, primarily due to supply shortages and the high demand for metals such as aluminum and steel. In the meantime, the unemployment rate in the manufacturing sector has fallen to 4.2%, which is a sign of a tightening labor market, which can also lead to higher wages and operating costs for valve manufacturers.

Social

Social trends in 2023 drive the demand for robots, particularly in the context of increasing automation in many industries. Early in 2023, a survey reveals that 68 per cent of manufacturing companies are investing in automation to improve productivity and reduce labour costs. The increasing importance of workplace health and safety and of ergonomics has led to an increase of 15 per cent in the use of automation to reduce human exposure to dangerous environments.

Technological

In the year 2023 the market for actuating devices will be undergoing rapid change. In particular, smart actuators and the Internet of Things will have a great impact on the market. In the course of this the demand for automation and real-time control will increase. The market for smart actuators is expected to reach a value of $ 3.2 billion in 2023. With the development of advanced control systems, the accuracy and speed of the actuating devices has increased considerably. In addition, a response time of less than 10 milliseconds has been achieved in some cases, which greatly increases the efficiency of the process in various applications.

Legal

Legal factors affecting the global market for actuators in 2023 include compliance with international standards and regulations. In particular, ISO 9001 certification, which focuses on quality management systems, is now required of more than one million companies worldwide, including manufacturers of valves. This certification ensures that manufacturers adhere to the highest quality standards, which subsequently leads to increased product reliability and customer satisfaction. It is crucial for manufacturers to comply with these regulations, as non-compliance can result in fines and a loss of access to the market.

Environmental

In 2023 the actuators market is characterized by an increasingly important role of the environment, with an increased focus on sustainable and eco-friendly production. The Green Deal of the European Union, which aims to reduce greenhouse gas emissions by at least 55% by 2030, will compel manufacturers to adopt more sustainable technology. And about a third of the manufacturers of actuators will thereby opt for energy-saving designs and materials, which are not only in line with the applicable regulations but also appeal to eco-conscious consumers.

Porter's Five Forces

Threat of New Entrants

The Actuators Market in 2023 is moderate in terms of the threat of new entrants. New entrants are deterred by the high capital investment required for establishing a manufacturing and technology base. Also, the economies of scale and brand loyalty enjoyed by the incumbents would further limit the threat of new entrants.

Bargaining Power of Suppliers

The suppliers in the market for actuating devices generally have low bargaining power. The market is characterized by a large number of suppliers offering similar products, which makes it easy for the manufacturers to change suppliers. The large number of suppliers therefore has a dampening effect on the bargaining power of a single supplier.

Bargaining Power of Buyers

The ACTIVATORS MARKET – BUYER POWER IS HIGH – BECAUSE OF AVAILABILITY OF MANY OPTIONS AND INCREASING DEMAND FOR CUSTOMIZED SOLUTIONS. The customer, being better informed and price-sensitive, is able to negotiate better terms and manufacturers are forced to improve their products and lower their prices to remain competitive.

Threat of Substitutes

The threat of substitutes on the market for valves is moderate. There are other systems that can perform similar functions, such as pneumatic and hydraulic systems, but the specific applications and the requirements for the performance of the valves often limit the direct substitution of the valves. But the development of technology can lead to new substitutes over time.

Competitive Rivalry

The competition in the Actuators Market is intense, owing to the presence of many established players and the rapidity of technological development. The companies are constantly trying to differentiate their products from the rest by improving their performance, efficiency, and cost-effectiveness. Competition in the market has resulted in a price war and higher marketing expenses.

SWOT Analysis

Strengths

• High demand across various industries such as automotive, aerospace, and manufacturing.
• Technological advancements leading to more efficient and reliable actuator designs.
• Diverse range of applications, enhancing market resilience and growth potential.

Weaknesses

• High initial costs associated with advanced actuator technologies.
• Dependence on the fluctuating prices of raw materials.
• Limited awareness and understanding of actuator technologies in emerging markets.

Opportunities

• Growing trend towards automation and smart technologies in industrial applications.
• Expansion into emerging markets with increasing industrialization.
• Development of eco-friendly and energy-efficient actuators to meet regulatory standards.

Threats

• Intense competition leading to price wars and reduced profit margins.
• Rapid technological changes requiring continuous innovation and adaptation.
• Economic downturns affecting capital investments in automation technologies.

Summary

The market for Actuators will be characterized by strong demand in 2023, which will be driven by technological developments and the increasing number of applications in a variety of industries. However, high initial costs and competition will create considerable risks. Opportunities for growth lie in automation trends and in emerging markets. Economic fluctuations and rapid technological changes will necessitate strategic innovation and agility.