Based on sales data from 80% of the UK panel builders market, the research uncovered optimism from panel builders with component suppliers focused on integrating AI into their products, as built in, real time AI is set to revolutionise the panel builders market in 2019 and beyond.The 200 page report suggests that the IoT market will exceed 6 billion devices in 2019, boosting opportunities for panel builders to integrate real time AI and advanced data analysis to enhance client productivity, output quality and efficiencies. MTW also found that growth in strategic outsourcing is providing resilience for the panel builders market in 2019, despite sustained business uncertainty and lacklustre investment in manufacturing and production underpinning pricing pressure. Drives, HMI and circuit protection are set to gain share of the panel builders market in 2019, with sales rising by more than 45% for some sectors by 2023. However, the report also sounds a note of caution, identifying several key end use sectors which are unlikely to see growth in 2019 and 2020. Light relief for panel builders active in the public sector may arrive from 2020 onwards with an anticipated increase in public spending as part of the Government’s Spending Review later this year. The report reviews the impact of Brexit on the market, identifying the most likely events through to 2023 which should offer longer term optimism for panel builders and component suppliers, though sales growth is expected to slow in H2 2019 and H1 2020. By 2023, MTW forecasts double digit growth for the panel builders market, identifying several strong fundamentals for growth, including migration to modular, factory automation, advanced data analysis and real time AI amongst other issues. Commenting on the research, MTW Research director Mark Waddy said, “The fourth industrial revolution is upon us. Machine learning, IoT, built in AI and advanced data manipulation within a wrapper of strategic outsourcing and closer client collaboration offers good opportunities for those panel builders able to identify current trends and adapt accordingly.”The research found that the transition to modular had increased the frequency of production line upgrades as efficiency, productivity and quality demands continue to grow in 2019. According to MTW, this is increasing demand for onsite consultation and upgrade work, boosting opportunities for panel builders to develop more meaningful relationships with clients. MTW also track the financials of over 100 panel builders and found that 9 companies have collapsed since their last report. Whilst this is reflective of the challenging trading environment in 2019, almost 70% of panel builders are still reporting sales growth and more than 60% of the panel builders market have excellent credit ratings. Overall, MTW predict buoyant longer term growth for the panel building market, with some short term challenges requiring companies to rethink their strategic directions. For those companies able to adapt to the structural shift in the market, there are clear opportunities for healthy growth. MTW’s report is available now from www.marketresearchreports.co.uk from £595 or by calling 08456 524324.
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