<i>The European market for profiles machinery for PVC, aluminum, and steel managed a modest growth rate of 2.2% last year, with a market volume of EUR 505 million. High growth rates in Southern and Eastern Europe were able to compensate for the negative effects of Brexit.</i>

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Profiles machinery are mainly used in automotive and window production. Only in Eastern Europe is the market share of PVC just above that of aluminum profiles machinery. Steel, with low single-digit percentages, plays only a subordinate role in the overall market.

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<b>Automotive Industry Boosts Aluminum Sector in Germany and France</b>

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Central Europe (the DACH countries, the Benelux region, and France) recorded a growth of 3.1% in 2018, with a market volume of EUR 231 million. The strong automotive industry and the high-quality window market are the driving forces behind the bullish aluminum market for profiles machinery. On the other hand, the market is characterized by a cut-throat price war in the PVC window market, which also has a strong influence on profiles machinery investments, according to Laszlo Barla, author of the study. In terms of machine types, the 3-4-axis profile machine segment leads the pack with a market volume of EUR 51.4 million. However, growth rates (+1.7%) in this product group are low. For this reason, the 5-axis machines may soon take the lead (+4.6%). Between aluminum and PVC, aluminum has a clear lead (56.9%) over PVC (41.5%).

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<b>Southern Europe in the Fast Lane<b>

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Southern Europe (Italy, Spain, Portugal, and the Balkan nations) recorded a market growth of 5.2% with a market volume of EUR 91.5 million. In addition to the Turin/Piedmont region with its automotive industry, the Italian window market is also experiencing a renaissance. In Spain and Italy, it is metal windows that are generating the largest sales. However, growth rates will decline somewhat over the next few years due to more moderate overall economic drive. Northern Europe (the UK, Ireland, Scandinavia) has lost its footing on account of the Brexit crisis (-4.6%). The output in the UK automotive industry declined by 11% in the first half of 2018. There is hope that the final Brexit agreement will instill a renewed sense of economic reliability. By contrast, the market in Scandinavia is developing steadily. The aluminum-to-PVC ratio is 55.9% to 42.9%. Eastern Europe recorded a market growth of 3.7% with a 20% share of the European market. The Visegrad states are the ones experiencing an economic boom. There are still a large number of small window producers in Eastern Europe looking for simple tools because of cheap labor. This demand is often met by cheap Turkish market participants.

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<b>German and Italian Manufacturers Dominate<b>

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Overall, the industry is dominated by German and Italian producers. Italian manufacturers, led by Voiláp and the FOM Group, are focused on the metal segment. German manufacturers such as URBAN and Rotox dominate the market for PVC profile machines.

29/03/2019

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.