Ultrasonic flowmeter market to reach $590 Million by 2012 | Automation.com

Ultrasonic flowmeter market to reach $590 Million by 2012

Ultrasonic flowmeter market to reach $590 Million by 2012
August 7, 2008: Propelled by strong growth in the oil & gas industry, the worldwide market for ultrasonic flowmeters is expected to grow at a compounded annual growth rate (CAGR) of 9.9% over the next five years. The market was $367 million in 2007 and is forecasted to be over $589 million in 2012, according to a new ARC Advisory Group study.

Ultrasonic flowmeters, once limited to use in niche applications, have become the fastest growing flow technology, particularly in the hydrocarbon industries. While ultrasonic flowmeter technology has been available for decades, it has only in recent years begun to see more widespread adoption. “Ultrasonic meters offer a compelling value proposition to users, and stand poised for widespread adoption in the process industries. Given its smaller market size relative to other flow technologies, sustained growth of the hydrocarbon industries, and a large installed base of obsolete and maintenance-heavy mechanical metering technologies ripe for replacement, ARC expects the ultrasonic market to continue to grow at near double-digit rates in coming years,” according to Analyst Allen Avery, the principal author of ARC’s “Ultrasonic Flowmeter Worldwide Outlook.”

Custody Transfer Segment Sees Strong Growth
Almost all of the growth of the process ultrasonic market in recent years has been due to increased shipments to the oil & gas industry, which nearly doubled over previous levels. It appears that the custody transfer market for natural gas has taken shape, thanks to adoption of the AGA9 custody transfer standard, and the use of ultrasonic meters for liquid custody transfer is increasing. The oil & gas industry has set aside its conservative stance on field device technology and has begun to embrace ultrasonic metering, particularly in new projects that allow the design of an infrastructure appropriate to achieve the best meter performance.

Smart Meters Provide Diagnostic Information
Fieldbus enabled smart meters will see strong growth, as flowmeters are installed as part of overall control systems. Communication via fieldbus networks allows users to remotely configure, monitor, and control their ultrasonic flowmeters. Meters that use digital communications protocols can also provide users with a wealth of diagnostic information about the health of not only the meter, but also the process. With sophisticated electronics embedded in ultrasonic flowmeters and visualization software, users can monitor flow profiles, the effects of flow conditioning, and detect potential line blockages. Armed with this data, users can optimize their meter calibration and maintenance practices.

Asia, Middle East Lead Growth
The largest growth will occur in Asia and EMEA regions. China and India are expected to make robust investment in basic infrastructure and new manufacturing plants. As energy-poor China seeks fuel for its rapid economic growth, it will ramp up its oil & gas infrastructure. The Middle East will continue to be fertile ground for ultrasonic meter suppliers, due to its role in oil & gas production. Growth in North America will be relatively modest, but still healthy due to investment in oil & gas infrastructure.

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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