Market Assessment - Growth Opportunity

SITUATION

Just like houses and commercial facilities built on land, boats, ships and marine vessels of all shapes and sizes —whether tethered at dockside or navigating on open expanses of water—need properly designed and equipped heating, ventilation and air conditioning (HVAC) systems for the comfort of passengers and crew. Looking at the overall global market potential, a supplier of marine HVAC systems wanted to identify what segments of the industry would be most attractive to their business. The company was particularly interested in finding ways to compete more effectively against their competitors and to successfully capture more business.

PMG SOLUTION

PMG performed a comprehensive market research that included more than 40 in-depth interviews with managers and executives at large shipbuilders around the world, in addition to extensive behind-the-scenes research.

PMG’s market research project included:

• A determination of market size in volume and value, in total and by each major market segment.

• The decision making process used in evaluating and selecting marine HVAC systems.

• Profiles of key competitors and how they compete for marine HVAC business.

• The relative importance of key criteria by which customers purchase marine HVAC systems.

• The differences in the decision making process, as well as the competitor position, between the repair/ replacement and new build markets.

• Specific recommendations on, product strategy, value proposition, distribution, parts and after-sales support, potential partnerships, and how to compete more effectively against each competitor

RESULTS

The PMG marine HVAC market research project revealed that shipyards are expecting an upturn in business (due to steady contracts for government vessels and demand for tug boats on the Mississippi River), large opportunities currently exist for customized HVAC systems, European and Asian marine HVAC manufactures compete aggressively in the U.S. shipbuilding market, design and space are primary considerations in selecting a marine HVAC system and that specific HVAC components are typically replaced versus entire systems. As a result, the market research provided the client solid business insights that have helped the company navigate around potential business disruptions and make better informed decisions about its approach to future business growth.