Market overview
Troax is the market leader on a globally growing market.
Troax is the market leader in a global niche market for metal based mesh panels. Mesh panels are mainly used in order to give employees a safe working environment, especially in businesses where machines are used. Official statistics are lacking with regard to the size of this market, so the majority of the details and figures that are stated below are based on Troax's own estimations (where nothing else appears). Troax's business is divided up into three business branches:
• Machine guarding
• Warehouse partitioning
• Property protection
Metal based mesh panels contain, to a smaller extent, solutions that are based on polycarbonate panels, which are transparent and full plate solutions that are often used for welding installations.
Troax's home market is Europe, but over the past few years, it has also been in the process of establishing itself in North America, the Middle East and the Far East and to a smaller extent also in South America and Africa.
The market for metal based mesh panels
The total market size was estimated a few years abo by Troax, with the help from a renowned consulting company. With the estimated market growth after this of approximately 5 percent per year, the global market can be estimated at approximately 1100 MEUR. Troax estimates the market will continue growing at this rate, provided that the international economic situation is not significantly weakened. An estimation of the world market could be done in accordance with the following:
• Europe – 45 percent of the global market or approximately 500 MEUR. Here the market is roughly divided into Machine guarding 55 percent, Warehouse partitioning 31 percent and Property protection 14 percent.
• North America – 41 percent of the global market or approximately 450 MEUR.
• Asia – 14 percent of the global market or approximately 150 MEUR.
Troax has roughly 14-15 percent of the global market and is largest of the known players. The target is to achieve at least 16 percent in 2–4 years’ time. Troax's European market share is estimated to 25 percent, a clear market leading position that can be strengthened further. Competitors are mainly found among blacksmiths and smaller workshops. This means Troax still has good opportunities to gain new customers, as the offer is clearly better compared with the workshop alternative. In Scandinavia, this occurs less frequently, but in southern Europe and in the growth markets (including the USA) these types of suppliers can constitute up to 40 percent of the market.
The market is characterised by:
• high demands on safety in vulnerable environments, which drives growth,
• customers’ need for support and help in choosing the right type of safety solution within mesh panels,
• norms and standards that increase the requirement, for example, ISO 14120,
• short delivery times are required,
• the safety solution is often a smaller part of the total investment,
• growth within e-commerce solutions (which promotes the need for warehouse solutions).
Important driving forces
Hard streamlining requirements increase the automation within the manufacturing industry and within logistics. When the use of robots increases, the requirement that people must also be able to work in a safe environment also increases, even if the manufacturing process is automated. Mesh panel systems are the safest and most competitive solution.
Further thoughts regarding safety
The main requirement is to get personnel not to enter dangerous areas. This may appear to be simple but it often requires a good understanding of physical safety, while allowing efficiency of the production or logistic process. This is often solved in combination with metal based mesh panel solutions and electronic locks that ensure that the production process cannot be broken in an uncontrolled manner. In Europe, there is an important Machinery Directive from the EU (2006/42/EC), which regulates several important aspects within safety. This directive contributes to standardising the view on safety and also compels, to a certain extent, increased requirements for safety in practice. Troax’s view is that this directive, as well as ISO 14120, are important elements for securing future workplaces. The updated ISO 14120 will most likely spread a culture of safety beyond Europe, meaning North America and Asia, will, in turn, adopt the same safety practices.
This should be good for Troax, as our products already exceed the ISO requirement on most applicable parts. We are therefore ready today for the next step within standardisation and norms. We can already now see that China is deeply involved in adapting to these European norms and USA, particularly international companies, are beginning to adapt themselves according to ISO instead of the local American norms.
Competitors
There are a few competitors that can be regarded as global, or at least partly global. A number of regional and respectively local players also exist. However, these do not have the geographical spread that customers often demand. At the top of this type of competitors there is a large number of local players, who often have strong local ties but normally do not have the same understanding of the solution safety wise, as the professional companies in the industry have. Historically these types of companies have lost market share. They occur most frequently in southern Europe, North America and the Far East.
Market segment - Machine guarding
Modern industries are often highly automated and require a high degree of safety. In order to protect people from potentially dangerous machinery, and also to protect the production processes, solutions such as mesh partitions are used to separate production
areas from other areas.
Growth factors
The market for machine guarding is expected to grow by around 7–8 %. Growth is primarily forecast for industries that are increasingly using large industrial robots, such as the automotive industry, the mining and steel industries, pharmaceuticals, foodstuffs and the
general engineering sector.
Customers
• Integrators, which in turn sell and install complete solutions for end-customers
• Automotive industry
• Manufacturers of industrial equipment (robots), such as packaging machinery and general industry.
(Some automated warehouses are included here because these customers fall into the Machine Guarding segment.)
Market segment - Warehouse Partitioning
Material handling equipment solutions include warehouse partitions, cages, wire mesh decking and anti-collapse systems. Wholly or partially automated warehouse solutions are also showing strong growth.
Growth factors
This market segment is expected to grow by 3–4 %, largely driven by the performance of the large retail chains and their demand for warehouses. But the e-commerce trend is also increasingly a growth factor in this sector. E-commerce is growing by more than 10 % per year.
Customers
• Pallet racking manufacturers and other integrators
• E-commerce retailers, catalogue merchants and grocery chains
• Logistics companies, which often complement their transport solutions with warehouse solutions
• Builders of data centres and server rooms.
Market segment - Property protection
Storage solutions for basement storage areas, primarily for multitenanted residential buildings.
Growth factors
This market segment is dependent on housing construction and thus to some extent on political decisions. Growth is expected to amount to around 2–3 %.
Customers
• Municipal and private housing companies and housing cooperatives
• The construction industry
• Companies letting storage space.