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Positioning of the manufacturers of packaging machines

The degree of concentration that will occur with the production of packaging machines to 2018

This report analyzes the concentration with the production of packaging machines in the year 2018, based on a representative market survey from Quest TechnoMarketing executed in 2015. Also the types of the packaging machines such as series machines, customized machines and plants are considered.

August 15th, 2016 – The degree of concentration determines the positioning companies take in competition in the sector as well as opposite their customers and suppliers. For this purpose the number of firms is set into relation to the number of their produced machines.


For the entire machinery industry thereby a pronounced concentration shows up. That is why two thirds of the machinery industry companies generate only 12% of the turnover in the machinery industry. In contrast over half of the machinery industry’s turnover is produced by just 6% of the machinery industry companies.


In the comparison to the machinery industry the concentration with packaging machines is less strongly pronounced. The following chart considers the denominations of manufacturers of packaging machines for the year 2018.


So over half the packaging machine-builders (53%) will produce 14% of the packaging machines in number of items from 1 to 99 machines to 2018. It is reasonable to assume that these numerous companies are in a strongly dependent position in the competition with the other two groups in the sector and opposite their customers and suppliers.

Concentration with the production of packaging machines to 2018.

The other pole is formed by 7% of the packaging machine-builders producing 44% of all packaging machines in number of items of 500 and more machines to 2018. These companies considerably determine the sector and are often able to take a key position opposite their customers and suppliers.


The middle group covers 40% of the manufacturers that will produce 42% of the packaging machines in number of items from 100 to 499 machines to 2018. The proximity of the two shares of companies and machines signals a certain balance among the competition forces within the sector as well as in relation to customers and suppliers.


Related to the point in time of the market survey in 2015 the concentration will intensify in favor of the companies producing 500 and more machines per year. Their share of production of packaging machines stands at 41% in 2015 and will rise until 2018 to 44% at the expense of the two other groups.


Now the well-informed reader might object that packaging machine is not equal to packaging machine because there are series machines, customized and plants that are manufactured naturally in each case in whole different high number of items.


This reference is justified and is now to be considered.


We differentiated four types of machines in regard to the market survey about the engineering of the machine automation directing the view into the future until 2017:

  • Series machines that do not experience substantial changes during their production

  • Customized-series machines, which are modularly constructed; the modules are assembled depending upon application or customer's request

  • Customized machines manufactured according to customer's request v  Plants combining several machines.


The survey indicates that for the year 2017 customized-series machines are the dominating type with packaging machines. 40% of the packaging machine-builders will produce this type that will constitute 53% of all packaging machines.

Types of machines such as series machines, customized machines and plants in the sector of packaging machines 2017.

Regarding the share of the number of items the series machines follow then, in regard to the share of companies the customized machines are on the second rank. Plants play a relatively subordinated role with packaging machines.


This distinction in four types of machines is very meaningful as the respective engineering differs clearly a fact considered in detail by the market survey.


However, reality is still more complex that it could be exhausted by four machine types. Could it be that there are machine-builders producing only series machines or only customized-series machines or only customized machines or only plants?


No, that is not predominantly the case. Rather 61% of the packaging machine-builders produce several types of machines covering 88% of all packaging machines. So the entwinement of the machine types with the production of packaging machines is the typical thing, the substantial one and only a good third is focused on one type of machine.


That provides far-reaching consequences for the engineering of machine automation as well as for automation manufacturers.

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