Global flowmeter market surging in 2011 amid high energy business - study
The worldwide market for flowmeters declined in 2010 but is expected to strongly rebound in 2011, according to a new ARC Advisory Group study.
Despite a challenging year, suppliers saw strong order taking in 2010, which bodes well for the market in the years ahead. Indeed, sales of major flowmeter technologies will move at brisk, above average rates as the market recovers in 2011 and 2012, the study says.
“Revenue recovery in the flowmeter market will be driven by increased business in the energy sector,” said ARC analyst Allen Avery, the principal author of ARC’s “Flowmeter Worldwide Outlook”.
Flowmeter suppliers will benefit from investment and expansion activities, and they have aligned their business goals to capitalize on growing industry segments and geographic regions that will enable them to increase market share, Avery said.
Energy sector activity to drive growth
The energy sectors will see the strongest growth in the years ahead. Oil prices are on the rise again with the economic recovery, increased demand, and political and social unrest in the Arab world.
This should continue to drive demand for flowmeters going forward, as higher prices favor increased exploration, production, and processing of fossil fuels, the study says.
Also, the need to bring refined fuels to growing markets in Asia will drive construction of pipelines and fuel terminals, increasing demand for custody-transfer capable flow measurement devices. Mining will also see steady growth if commodity prices hold.
Intelligent flowmeters deliver benefits to users
More widespread adoption of intelligent field devices such as ultrasonic and coriolis flowmeters has helped owner/operators to improve the accuracy of their flow measurements, with repeatability and reliability previously unavailable with older mechanical meters or crude methods such as orifice plates or PD meters.
Device intelligence has helped flowmeters to evolve beyond their basic purpose to be indispensable tools for process and business improvement.
Asia, Middle East to see strongest growth
North America will see strong activity, particularly if oil remains above the $80 to $85 level, justifying continued investments in oil sands projects in Canada.
In the EMEA region, growth will be driven by oil and gas projects in the Middle East and Africa, as well as investments in refining capacity and liquefied natural gas (LNG) processing and loading facilities.
Asia will continue to be the engine of global growth as new construction in the power, oil and gas, and water and wastewater sectors continues as the economies in China and India advance, and demand for consumer goods and transportation increases.
Latin America, though the smallest global market for flowmeters, will nevertheless see strong activity in oil and gas exploration and production, mining, and renewable fuels over the next several years.
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