Subcontracting ATEX product development for hazardous area equipment and devices saves time and cost. Experience counts, especially if certifying products to global standards. Ex Dynamics offers consultation, development of product derivatives or entire product ranges.

The Hazardous Area (ATEX) equipment market was valued at $6.24bn in 2016 and will be $8.82bn by the end of 2022. There’s a huge industrial market for equipment designed to withstand some of the harshest and potentially explosive environments in the world.

Testing and certification regimes for compliance in different global regions ensure the safety of personnel and facilities. But they represent a formidable obstacle in time and cost to companies in the markets or wishing to enter. Manufacturers would like to develop ATEX products but are unwilling to commit the time and cost required. But the opportunity cost of delaying or not developing new products often exceeds the actual development costs. This is especially the case for companies with global sales channels as competitors gain market share and project specification.

Acquisition, Asset Purchase or In-House?

The Hazardous Area market is a lucrative, niche opportunity, albeit associated with safety critical markets, under-pinned by resilient growth drivers. Companies seeking growth through new products in this market have traditionally had three options: acquisition, asset purchase or in-house development.

Business Acquisition incurs significant time and cost. From initial scoping through to completion and integration, this usually delivers a less-than-optimal incremental product portfolio. Post completion costs through personnel and operational restructuring, sales distribution clashes, etc. add further cost. This can offset any initial boost to sales from the existing customer base.

The Asset Purchase route poses one major question – why is a company divesting the product portfolio? Out-of-date approvals, declining markets or the need to update the product range? It’s rare to find a suitable product portfolio at the right time and cost.

In-house development is the usual route for larger companies. Some already have new product development (NPD) departments, at significant cost. This resource may become cost prohibitive when considering the opportunity costs of launch delays through certification failures or design issues. Smaller organisations must assess if their personnel have the required skillsets and experience. Does the company have the capacity and financial resource for in-house development?

Sub-contracting ATEX Product Development has all the attributes of in-house development. All IPR, certification and tooling is passed to the client on project completion. It facilitates the opportunity to get products to market far quicker than utilising an inexperienced or multi-tasked in-house team.

Outsourcing ATEX Product Development and PPA

PPA (Product Portfolio Acquisition) enables clients to subcontract ATEX product development, test and certification. The client can implement manufacturing and product release over a much shorter timescale.

This service is provided by UK based Ex Dynamics. We offer ATEX product development for electro-mechanical devices (often with additional IECEx and North American certification) for use in global Hazardous Area markets.

Outsourcing through PPA is faster than in-house development. By utilising our vast experience, we can deliver the benefits of acquisition in a fraction of the time. It reduces deal complexity, contractual complication and cost. The entire ATEX product development process is undertaken under complete confidentiality. Our in-house design, production and test facilities streamline the whole process. We have a well-proven track record in third party certification, minimising risks of failures that can result in considerable unforeseen cost and delay.

Ex Dynamics work with clients from initial project assessment through the whole process to handover.  We provide costed, detailed proposals, agreement of terms and project milestones. Clients include major global entities that required ATEX product development, often also certified for IECEx, North American and Canadian standards.