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Significant Growth in the Production Sector Drives Innovation in the South African Boiler Market States Frost & Sullivan - Development in the food and beverage industry as a segment of the production sector in South Africa resulted in the South African boiler market witnessing significant growth in 2008 prior to the economic downturn
Significant Growth in the Production Sector Drives Innovation in the South African Boiler Market States Frost & Sullivan

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2010/05/04 - Development in the food and beverage industry as a segment of the production sector in South Africa resulted in the South African boiler market witnessing significant growth in 2008 prior to the economic downturn.

   
 
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New analysis from Frost & Sullivan (energy.frost.com), The South African Boiler Market, finds that the market earned revenues of $5.02 billion in 2008 and estimates this to reach $5.2 billion in 2014. The following product segments are covered in the analysis: package boilers (shell boilers), utility boilers, water-tube boilers and electrode boilers.

If you are interested in more information on this study, please send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"The economic development and prosperity of South Africa prior to the global recession resulted in the domestic boiler market experiencing extreme growth in 2008," notes Frost & Sullivan Programme Manager Cornelis van der Waal. "Although this will not be the case in 2010, the outlook remains positive for the boiler industry as soon as the economy starts recovering."

The market is expected to remain robust due to a strong pipeline of projects in the power sectors, as the public utility Eskom has embarked on a massive $15.4 billion capital expenditure programme. Strong demand from the metals and mining sectors, coupled with healthy demand from the production sector, especially the food and beverage industry, will further promote market prospects.

Boiler manufacturers as well as the end users of boilers face a significant challenge of skills shortage in South Africa. Although some of the market leaders, for example John Thompson, run a boiler house training school, the pool of knowledge and skills in the boiler industry is extremely limited.

"Not enough is being done to train and empower boiler operators," cautions van der Waal. "The shortage of skilled labour could translate into inefficiency in the near future."

Participants in the boiler OEM market segment and the servicing segment have attempted to overcome these challenges by investing in training programmes and by design flexibility and product customisation.

"The knowledge, skills and experience of boiler operators and manufacturers in South Africa are limited to an exclusive and small pool of professionals," states van der Waal. "The ability to combine Black Economic Empowerment (BEE) with providing apprenticeships at an OEM will ensure the retention of valuable expertise."

At the same time, one of the best practices needed to be successful in the market is having access to a database of internationally acclaimed boiler designs and technologies. It is the opinion of Frost & Sullivan that the development of world-class boiler technology (for example, fibrous fuel technologies) could result in a company becoming the market leader.

The South African Boiler Market part of the Energy & Power Growth Partnership Service programme, which also includes research in the following markets: The African Large Wind Turbine Market, Asian Influence in the Sub-Saharan African Electricity Market and, Sub-Saharan Gas Turbine Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

The South African Boiler Market / M4B1

 
 
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Significant Growth in the Production Sector Drives Innovation in the South African Boiler Market States Frost & Sullivan

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Contact: Patrick Cairns 
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