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JetFan – Market Analysis
There are three key market segments for the JetFan technology:
- Compact electronic equipment cooling (CEEC) – computers and telecommunications equipment
- Domestic appliances – hairdryers, vacuum cleaners, hand dryers etc.
- Heating, ventilation and cooling (HVAC) of buildings and vehicles
The chosen launch market is the CEEC market. This is based on three primary factors:
- JetFan technology offers benefits which add significant value to compact electronic equipment;
- Compact electronic equipment OEMs operate in a highly competitive industry and therefore value JetFan technology’s ability to provide competitive advantage; and
- The compact electronic equipment market continues to be a strong growth market.
The features and benefits of the JetFan, as outlined earlier, will allow OEMs to produce smaller and quieter equipment that uses less battery power. Innovation and miniaturization in these mature product categories is most often incremental. Any component that provides the same or better performance whilst also being smaller, less expensive and/or more power efficient is welcomed by manufacturers. Following is an analysis of the CEEC market. The above-mentioned market segments (2) and (3) will be assessed for attractiveness as the next priority for JetFan Ltd.
Target Market Size
It is conservatively estimated that 350 million small fans are made every year for the CEEC market. The market size has been estimated by the Gartner Group. The growth forecasts for this market are estimated at 15% per annum.
Two market trends combine to indicate a strong demand for JetFan technology:
- Continuing miniaturization of compact electronic equipment; and
- The speed of new, faster computer chips is presenting problems of excessive heat, and subsequently placing limits on miniaturization.
Laptop and palm top computers are increasingly replacing traditional desktop computers. Portable computers are a major growth segment of the computer market, growing at 15% to 20% annually. Currently compact portable computers are unable to utilize the latest most powerful processors (‘chips’) because the heat produced by these chips cannot be adequately removed by traditional fans and heat sinks. This represents a market opportunity because laptop computers represent the higher end of the market where lead users demand superior performance. In addition to facilitating more powerful processors and continued miniaturization, the JetFan’s increased efficiency lowers power consumption and extends battery life. This is an important feature in portable computer and telecommunications equipment.
In the CEEC market segment, fan manufacturers supply computer OEMs with fans that meet their specifications for performance, features and cost. In the case of CPU cooling, the chip manufacturer (e.g. Intel or AMD) specify the cooling requirements that the fan manufacturers’ fans must meet in order to optimize performance of the chip.
The relevant players in the CEEC market are:
The above diagram refers to CPU cooling, which is a segment within the Computer segment, which is within the CEEC market. In addition to CPU cooling, computers also require fans for hard disk cooling and general system cooling.
Compact electronic equipment OEMs purchase cooling fans from specialist fan manufacturers such as Papst (Germany), NMB (Japan) and Sunon (Taiwan). These fan manufacturers make their own fan motors, fan impellers and fan chassis in-house. If JetFan Ltd decides to produce complete fan units (for example, by buying in the fan motors), then the company will have many sizable direct competitors, such as Papst and the like. However, if JetFan Ltd focuses on the manufacture of fan impellers, and does not move into the area of fan motor manufacture, then the company has no direct competitors in the area of fan impeller supply. This is because no significant advances have occurred in fan impeller design in over 40 years – it has been a generic technology, available to all to manufacture in-house. Therefore, JetFan Ltd’s direct competition is the in-house impeller manufacturing facilities of CEEC fan manufacturers. With clearly superior product benefits and comparable production costs, JetFan Ltd is well-placed to compete with the fan manufacturers’ in-house production of generic fan impellers. Currently, in-house impeller manufacture is not providing competitive advantage for fan manufacturers. Existing fan manufacturers possess these characteristics:
- Low cost, high volume fans
- Small, reliable fan motors
- Known product brands to OEMs
- Established manuf. and dist. through to OEMs
The test results clearly show that the JetFan is superior to all current mass produced compact electronic equipment cooling fans on the key parameters of cooling ability, size and quietness. JetFan impellers will allow fan manufacturers to produce better performing, smaller, quieter and more efficient fans. For OEMs such as Dell or Texas Instruments, for example, these benefits will translate directly into finished products that are smaller, quieter and have extended battery life.
Indirect competition in the CEEC market relates to alternative technologies that either reduce or circumvent the need for cooling of compact electronic equipment. Threat of substitutes: There are a number of potential substitute products to the fan that could emerge over time. New areas of research include using ‘thermoelectric coolers’, whereby an electrical current is passed through a semiconductor. This technology is already being applied in many military and aerospace applications and may replace the conventional chip-cooling fan within a computer. It is anticipated, however, that it will only be used in the high end of the market and its application to computers would appear to be at least 7 – 10 years away. Nonetheless, chip-cooling is only one aspect of cooling compact electronic equipment – power supplies, hard drives and batteries also require cooling. Other non-computer applications include, but are not limited to amplifiers, flat-screen televisions, fiber optic lighting products, communications equipment, and scientific instruments.
|JetFan Technology Limited|
|Table of Contents||Appendices|
|0. Executive Summary
1. The Company’s Profile
2. Market Analysis
3. Strategic Market Entry
4. Marketing Strategies
5. Operational Plan
|Potential Product/Market Matrix
Management Team Resumes
The Cooling Fan Specification Process
|© JetFan Technology Limited|