Research and Markets: The 2009 Report on Aerospace-Type Pneumatic Fluid Power Valves: World Market Segmentation by City

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/146386/the_2009_report_on) has
announced the addition of the "The 2009 Report on Aerospace-Type Pneumatic Fluid
Power Valves: World Market Segmentation by City" report to their offering.

This study covers the world outlook for aerospace-type pneumatic fluid power
valves across more than 2000 cities. For the year reported, estimates are given
for the latent demand, or potential industry earnings (P.I.E.), for the city in
question (in millions of U.S. dollars), the percent share the city is of the
region and of the globe. These comparative benchmarks allow the reader to
quickly gauge a city vis-à-vis others. Using econometric models which project
fundamental economic dynamics within each country and across countries, latent
demand estimates are created. This report does not discuss the specific players
in the market serving the latent demand, nor specific details at the product
level. The study also does not consider short-term cyclicalities that might
affect realized sales. The study, therefore, is strategic in nature, taking an
aggregate and long-run view, irrespective of the players or products involved.

What is Latent Demand and the P.I.E.? The concept of latent demand is rather
subtle. The term latent typically refers to something that is dormant, not
observable, or not yet realized. Demand is the notion of an economic quantity
that a target population or market requires under different assumptions of
price, quality, and distribution, among other factors. Latent demand, therefore,
is commonly defined by economists as the industry earnings of a market when that
market becomes accessible and attractive to serve by competing firms. It is a
measure, therefore, of potential industry earnings (P.I.E.) or total revenues
(not profit) if a market is served in an efficient manner. It is typically
expressed as the total revenues potentially extracted by firms. The "market" is
defined at a given level in the value chain. There can be latent demand at the
retail level, at the wholesale level, the manufacturing level, and the raw
materials level (the P.I.E. of higher levels of the value chain being always
smaller than the P.I.E. of levels at lower levels of the same value chain,
assuming all levels maintain minimum profitability).

The latent demand for aerospace-type pneumatic fluid power valves is not actual
or historic sales. Nor is latent demand future sales. In fact, latent demand can
be lower either lower or higher than actual sales if a market is inefficient
(i.e., not representative of relatively competitive levels). Inefficiencies
arise from a number of factors, including the lack of international openness,
cultural barriers to consumption, regulations, and cartel-like behavior on the
part of firms. In general, however, latent demand is typically larger than
actual sales in a city market.

Another reason why sales do not equate to latent demand is exchange rates. In
this report, all figures assume the long-run efficiency of currency markets.
Figures, therefore, equate values based on purchasing power parities across
countries. Short-run distortions in the value of the dollar, therefore, do not
figure into the estimates. Purchasing power parity estimates of country income
were collected from official sources, and extrapolated using standard
econometric models. The report uses the dollar as the currency of comparison,
but not as a measure of transaction volume. The units used in this report are:
US $ mln.

Step 1. Product Definition and Data Collection

Step 2. Filtering and Smoothing

Step 3. Filling in Missing Values

Step 4. Varying Parameter, Non-linear Estimation

Step 5. Fixed-Parameter Linear Estimation

Step 6. Aggregation and Benchmarking

For more information visit
http://www.researchandmarkets.com/research/146386/the_2009_report_on

Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716

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