GREENWICH, Conn. - Jan. 5, 2018 - According to CW Research (https://www.cwgrp.com/research)'s recently published World Cement Equipment Market and Forecast Report (https://www.cwgrp.com/research/research-products/product/265-world-cement-equipment-market-and-forecast-report), the market for cement manufacturing related equipment and services is projected to reach USD 9.0 billion by 2022. However, as greenfield cement plant projects remain scarce, upgrades to existing cement plants will become relatively more important; equipment relating to upgrades (i.e., excluding service-related spend) will move from representing a quarter of the total cement manufacturing equipment capital spend in 2017 to over 40% by 2022.

Consequently, notably what CW Research defines as "functional" equipment (i.e., conveying, automation, filtering, environmental control, etc.) will be a central growth driver of cement plant-related equipment sales over the next five years.

Robert Madeira, CW Group Managing Director and Head of Research, notes: "decision making for cement manufacturers is becoming more and more complex as players aim at achieving higher efficiency and reducing operating costs. As a result, more technology-intensive functions such as automation, control and testing are becoming more prominent, and representing an ever-growing share of the cement plant equipment spend mix."

Project scarcity increasing competition

With a global dearth of cement production capacity expansion projects, equipment suppliers have been facing a tough down-cyclical market. New equipment orders are relatively scarce, and competition to win orders is very high.

Given the cement plant expansion and upgrade market dynamics, CW Research expects prices to fall an additional over 5%. Cement plant equipment types that do not require as complex engineering or proprietary technology are expected to further commoditize and continue to face even harsher price erosion.

The expansion of the upgrade and spares segments will be underpinned by cement manufacturers' shifting capital expenditure and strategic priorities. CW Research projects the market for upgrades and spares to amount to USD 3.3 billion, with China accounting for 44 percent of the market. Globally, by 2022, the upgrades and spares segments are projected to expand the fastest, reaching close to USD 5 billion.

Western/Chinese equipment price gap narrows

Over the last five years, competition between Western and Chinese manufacturers has intensified, but the pricing gap between them is likely to gradually become narrower in the next five years. In 2012, the average price extended by a Chinese supplier for a new project would be less than half of its western counterpart's. That is no longer the case.

One of the consequences is that market shares for key production equipment segments are also changing, as producers jockey for relatively fewer orders compared to the preceding 5-10 year period. Turnkey Western equipment producers, such as FLSmidth, ThyssenKrupp, or KHD Humboldt, are becoming increasingly competitive with Chinese suppliers, including Sinoma and CNBM and their sub-units (e.g., TDCRi), reclaiming increasing shares outside China.

Within the cement mill segment (including vertical roller mills, ball mils and roller presses), as well as the clinker cooler segments, market shares have been evolving, as CW Research points out in the report, which shows market shares for top suppliers (including Loesche, Gebr. Pfeiffer, IKN, Christian Pfeiffer, Fives FCB, FONS and many others) across key cement manufacturing segments.

As observed by Raluca Cercel, Associate with CW Research: "on one hand, Western cement manufacturers are trying to improve their cost efficiency, and offer lower prices in order to capture a larger slice of the market. Chinese equipment providers, in turn, are aiming to raise the quality of their equipment. This market approach caters to an increasingly discerning end user, driven by concerns such as quality and value of the equipment but also its user-friendliness and flexibility. The combination of this consumer trend with the rise of labor costs is expected to result in a gradual increase in prices."

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For more information, placing an order, or interview inquiries, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group, by phone at +40-744-67-44-11, or e-mail at [email protected].

About the Report

The World Cement Equipment Market and Forecast Report addresses important market dynamics and provides a five-year outlook for equipment used in the production of clinker and cement. Building on a rigorous analysis of past and future cement plant capacity expansions (greenfield and brownfield expansions), the report covers all production stages, from raw material grinding to final cement dispatch. Key trends in the main production equipment segments are discussed, sized and forecasted (in USD value and capacity, where applicable), broken down into geographic segments (regions and global by equipment type).

More specifically, process-wise, the report covers equipment required in crushing (crushers), milling (raw meal mills, fuel mills, finishing mills), power (electricity generation and waste heat recovery), pyro processing (burners, pre-heaters / cyclones, kilns, coolers, alternative fuel preparation), and dispatch (weighing, bulk loading, bagging and palletizing equipment) is sized and forecast. Within the principal segments additional details are provided, including mills (vertical roller, ball and roller presses) as well as other equipment such as conveying, storage (silos, stackers / reclaimers), automation, motors, environmental & emissions (e.g., filters and scrubbers), and testing and control functions are extensively covered.

More information about the report can be found here: https://www.cwgrp.com/research/research-products/product/265-world-cement-equipment-market-and-forecast-report

About CW Group

The Greenwich (Conn.), USA-headquartered CW Group is a leading advisory, research and business intelligence boutique with a global presence and a multi-industry orientation. CW Group is particularly recognized for its sector expertise in heavy-side building materials (cement), light-side building materials, traditional and renewable power & energy, petrochemicals, metals & mining, industrial minerals, industrial manufacturing, bulk cargo & shipping, among others. We have a strong functional capability, grounded in our methodical and quantitative philosophy, including due diligence, sourcing intelligence, feasibility studies and commodity forecasting. www.cwgrp.com

Media Contact
Liviu Dinu
***@cwgrp.com
+40-744-67-44-11