The global level transmitter market consists of various global and regional service providers who are continuously evolving to enhance their market position. The need for continuous level monitoring and increasing automation across various industries are the key factors that are aiding the market growth. However, issues such as network congestion are expected to limit the growth of the market during the forecast period. The level transmitter manufacturers compete based on technology, efficiency, and reliability of products to sustain in the market. It is important for level transmitter manufacturers to provide products or solutions according to industry and customer needs as well as at par with the latest technology to maintain their market position and gain a competitive advantage.
Vendors in the level transmitter market are focusing on improving their technologies and upgrading products as well as expanding into the developing economies.
Vega Grieshaber Kg, WIKA Alexander Wiegand Se & Co. KG, Magnetrol International, Inc., Dwyer Instruments, Inc, Krohne Ltd, Baker Hughes, ABB Group, Siemens Ag, Honeywell International, Inc, Rockwell Automation, Schneider Electric Se, Yokogawa Electric Corporation, Endress+Hauser Management Ag, and Fuji Electric Co. Ltd are the major players in the market, competing in terms of variety of applications of the product, as well as its efficiency, reliability, affordability, and advanced technology. Their primary focus is to provide high-quality level transmitters which will help further users such as oil & gas vendors in the manufacturing of end products which will further help end users to have a product with advance technology. Although global players are dominating the market, a few regional and other local players with a limited market share also have a prominent presence in this market.
The major players would look to strengthen their global presence through mergers and acquisitions of local and regional players; they are expected to expand their presence and solutions in those countries during the forecast period. The improvement of the global economic scenario combined with technological advancement in the emerging economies such as Argentina, Brazil, China, India, Mexico, Poland, South Korea, and other countries, is likely to fuel the market growth, making it an ideal time to expand the level transmitter market geographically and increase the market share. Therefore, vendors must develop new technologies to stay at par with emerging technology trends that could affect the competitiveness of their product lines in the market.
Michael Porter’s Five Forces model is a framework to study the global level transmitter market. Strategic business managers, trying to gain an edge over competing firms in the global level transmitter market can utilize this model to better comprehend the industry in which the company operates. The components of each of the forces and the degree of impact of each component in the context of the global level transmitter market have been broken down and analyzed.
THREAT OF NEW ENTRANTS
The threat of new entrants in the global level transmitter market is considered to be moderate. The market has witnessed a significant presence of level transmitter providers which creates a barrier for new companies to enter the market. The capital investments required to enter the market are moderate as the major cost involved is in setting up the assembly facility. Moreover, the governments of different regions rolling out regulations and policies to operate level transmitters has also refrained the new players to enter the market. However, the developing countries in the Asia-Pacific region has created a major demand for level transmitters in food & beverages, chemicals, water & wastewater, industrial, medical, agriculture, automotive, and manufacturing industry verticals, facilitating the entry of new players in the market. Therefore, owing to the above-mentioned factors, the threat of new entrants in the global level transmitter market is expected to be moderate during the forecast period.
BARGAINING POWER OF SUPPLIERS
The suppliers in the level transmitter market involve manufacturers of electronic components such as signal conditioners, sensor probes, microcontrollers, displays, magnets, alarm systems, antennas, analog-to-digital converters (ADC), and power supply. The switching cost of these components is very low which curtails the bargaining power of suppliers. Also, the design and specifications of level transmitters vary across manufacturers, there exists little to moderate product differentiation of electronic components. This has created a lower impact on the bargaining power of suppliers in the market. However, due to rising concerns regarding sustainability and environment protection, the suppliers need to ensure the quality of products and are required to undergo various quality inspections and certification for the components supplied. A majority of the suppliers have started using bio-based materials for manufacturing components, thereby reducing the impact of government regulations to a certain extent. This, in turn, has increased their bargaining power. The suppliers generally enter into long-term contracts with the assemblers for building partnerships and compete with other component suppliers. Thus, considering the aforementioned factors, the bargaining power of suppliers is projected to be moderate during the forecast period.
THREAT OF SUBSTITUTES
There exist various types level transmitters such as capacitance, hydrostatic, magnetic, radar, ultrasonic, guided microwave, and liquid level transmitters among others that are used as per the end-use application. With advances in technology, each of the level transmitters can be replaced with other level transmitters with similar functionalities. Thus, the availability of close substitutes is high. However, the buyers do not generally opt for alternatives since each of the level transmitters operate efficiently for any application. This reduces the buyer’s propensity towards level transmitter alternatives. However, with the influx of technology, the adoption of alternate level transmitters providing better efficiency and results is expected to increase during the forecast period. Thus, the overall threat of substitutes is expected to be high during the forecast period.
BARGAINING POWER OF BUYERS
The buyers in the global level transmitter market comprise companies active in the oil & gas, chemical, power generation, automotive, food & beverages, and other industries. Owing to a large number of end-use applications in these verticals, the concentration of buyers in the global level transmitter market is high. These buyers generally focus on efficient, compact, reliable, and accurate level transmitters that can also be used in rugged environments; thus, increasing the brand identity among buyers. The demand for continuous monitoring is also one of the factors considered by the end users while selecting level transmitters. In addition to this, the cost of switching for buyers is low due as there is little to low product differentiation and comparable prices. Therefore, the overall bargaining power of buyers expected to be moderate during the forecast period.
INTENSITY OF RIVALRY
The degree of rivalry among existing players in the global level transmitter market has increased in the past few decades owing to the demand for automation and the optimum use of resources in industry verticals. This has encouraged the existing players in the global level transmitter market to innovate and upgrade their existing product portfolio with state-of-the-art technology that complements and meets the increasing demand for automation across industry verticals. Similarly, minimal product differentiation and pricing of level transmitters have also created an intense competition across the major players in the global level transmitter market. Thus, considering these factors, the rivalry in the market is expected to increase in the coming years.
