- March 14, 2009
- ARC Advisory Group
March 14, 2009 - Driven by a stronger emphasis on plant asset management (PAM) and safety applications, the worldwide market for Pressure Transmitters is expected to grow at a compounded annual growth rate (CAGR) of 3.3 percent over the next five years. The market was $2.38 billion in 2008 and is forecasted to be approximately $2.798 billion in 2013, according to a new ARC Advisory Group study. Led by a strong automation market and healthy capital expenditures, the pressure transmitter market has seen strong growth in recent years. Increased adoption of smart transmitters, continued emphasis on PAM systems, multivariable technology, and wireless communication protocols have been the primary contributors to growth in the market. “Going forward, the market is not expected to sustain its current level of growth. The looming economic recession will adversely impact the market in the near term, extenuating the factors that have been responsible for recent above average growth rates,” according to Analyst Joe Gillespie, the principal author of ARC’s “Pressure Transmitter Worldwide Outlook.” Economic Landscape to Dictate Market PerformanceSeveral economic trends threaten to adversely affect shipments of pressure transmitters over the forecast period. The severity of these factors combined with the length of the impending economic downturn will have a large impact on the performance of the pressure transmitter market. However, sustained emphasis on PAM systems, plant safety, and multivariable sensing will continue to drive sales of intelligent pressure transmitters. ARC believes these factors will largely cancel each other out and the market will grow at rates close to historical averages. Multivariable Technology: Killing More Birds with the Same Stone Sales of multivariable pressure transmitters, one unit that measure two or more process variables, have doubled since 2004, resulting from increased accuracy and the ability to be used in a wide range of applications. The most popular multivariable transmitters utilize an embedded temperature sensor. This allows the transmitter to calculate the density and mass of the process, which significantly increases the application scope of these devices. Users gravitate towards multivariable units because fewer insertion points need to be cut into the process piping, and more accurate density and mass flow calculations are generated because temperature and pressure measurements are taken from the same point in the pipe. Asia and The Middle East Offer Highest Growth PotentialRegionally, suppliers can expect to see the largest growth in the Middle East, due to its high concentration of oil and gas activities, and in Asia, where heavy investment in new plant construction continues in core sectors. In the mature North American and Western European markets, suppliers will largely rely on replacement business. Latin America will see above average growth, but remain a relatively small market for pressure transmitter suppliers.
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