NEWS RELEASE                                                                                    June 2021

Market Share Analysis Needs to be Very Focused

In our news release last week, we wrote about the importance of the competition in determining profits: Profit Margin Depends on the Competition

Why do the leaders have a perceived lowest total cost of ownership? Flow and treat companies  often have many products serving many industries. The factors which determine cost of ownership vary among products and industries. So the competitor market share has to be matched to the product which directly competes.

The biopharmaceutical industry is booming. Sales of peristaltic pumps are growing at double digit rates. Suppliers are largely flow and treat companies with multiple products. One of the leaders has the following market shares.



Despite Flow and Treat revenues of more than $1 billion the company has only a 0.2% market share in this broader market. Its share of the pump market is well less than 1%.  However, it has  an 8% share of the pharmaceutical pump market. There are six types of rotary pumps of which peristaltic is one. This leader has a 30% share of this product segment but just in pharmaceuticals. Its share with certain customers such as Regeneron is 70% or more.

Certain aspects of the pharmaceutical peristaltic pump market are unique at the present time.  One is the value of early delivery. With the need for much greater vaccine production, the demand for peristaltic pumps is extending delivery dates. So this is a cost of ownership factor which needs to be considered.

By determining niche market shares and the unique cost of ownership factors for each niche, a flow and treat company can successfully pursue  increased profits.

Market share analysis is included in the various McIlvaine market reports including Pumps: World Market

Bob McIlvaine can answer your questions at 847 226 2391 This email address is being protected from spambots. You need JavaScript enabled to view it.