Coriolis flowmeter market stayed steady in 2009 | Automation.com

Coriolis flowmeter market stayed steady in 2009

Coriolis flowmeter market stayed steady in 2009
November 17, 2009 - Coriolis flowmeters have continued to gain greater acceptance in the process industries. The market for these meters has enjoyed strong growth in recent years as technological improvements continue to expand their application range. This has led to a large backlog for Coriolis meters which helped sustain market performance for much of 2009, at a time when many other markets were reeling from the effects of the global economic collapse.

Revenue growth was stable in all vertical industries, driven by greater user acceptance of the technology, increased sales of larger sized meters, advances in measuring two-phase flow and start empty/finish empty batch applications, the emergence of two-wire designs, and increasing popularity in custody transfer applications, particularly in the oil & gas industry.

This combination of factors has provided a big lift to the Coriolis market and is the reason Coriolis meters have been one of the fastest-growing flow technologies in recent years. However, according to Analyst Joe Gillespie, the principal author of ARC’s “Coriolis Flowmeter Worldwide Outlook,” “It is safe to assume that this period of extraordinarily strong growth has passed and growth rates will drop markedly in the near future as the effects of the global economic recession and lack of backlog take its toll on the market for Coriolis flowmeters. Negative market growth is expected in 2010 and 2011.”

Versatility of Coriolis Meters Offer Extensive Capabilities
The versatility of Coriolis flowmeters is the most significant factor contributing to the growth of the technology. Direct mass flow measurement eliminates the need to compensate for other process variables, and Coriolis flowmeters can provide simultaneous outputs corresponding to volumetric flow rate, total flow, density, and temperature. No other flow device has such extensive capabilities. Traditional mass flow measurement requires a primary flow element, numerous sensors, and related transmitters connected to a computational device in order to compensate for associated process variables. These additional devices add significant costs, are potential sources of error, and increase the maintenance profile of a company’s field systems.

Government Stimulus Packages Will Provide Boost in Challenging Economic Climate
The tumultuous economic conditions that have materialized over the past year have galvanized many governments to construct large economic stimulus packages in an attempt to quell what has been called “The Great Recession”. The US and China in particular have released stimulus plans ($787 billion and approx. $586 billion, respectively) that focus on rebuilding and commissioning new infrastructure projects. In an environment where the unavailability of capital for investments is stifling private investment, these government injections will help support the automation market throughout the remainder of the downturn.

Asia and Middle East Offer Highest Growth Potential
Regionally, suppliers can expect to see the largest growth in Asia, where heavy investment in new plant construction continues in core sectors and in the Middle East, due to its high concentration of oil and gas activities and its growing focus on water desalination. In the mature North American and Western European markets, suppliers will largely rely on replacement business, as Coriolis meters continue to gain preference over other flow technologies. Latin America will see above average growth, but remain a relatively small market for Coriolis flowmeter suppliers.

About ARC: Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manufacturing and Supply Chain solutions. No matter how complex your business issues, our analysts have the expert industry knowledge and first-hand experience to help you find the best answer. We focus on simple yet critical goals: improving your return on assets, operational performance, total cost of ownership, project time-to-benefit, and shareholder value.

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