New technology adoption, changing regulatory environment drive record global heat meter market

Global billing heat meter market revenues surged in 2011 to roughly $730 million, a growth of almost 15% over 2010 levels, according to a recent study.

06/21/2012


A recent study released by IMS Research, recently acquired by IHS Inc., shows that global billing heat meter market revenues surged in 2011 to roughly $730 million, a growth of almost 15% over 2010 levels. Key market drivers are new technology adoption and a continually maturing regulatory environment which promotes end-use measurement for the accurate billing of energy.

While ultrasonic and electromagnetic (static) metering technology has been seen for some time in the market for larger heat meters, adoption is now occurring for smaller heat allocation meters. Heat service companies in Germany, Europe’s largest market, started to install ultrasonic metering into billing and allocation metering systems in 2010 and 2011. This is a notable occurrence given this region’s history of using cheaper and less accurate mechanical meters, which must be removed/recalibrated every five years due to existent regulation.

The World Market for Static Heat Meters by Major Region. Source: IMS Research

Research director Michael Markides commented, “With such strong regulation in place in Germany, service companies could never justify paying for more expensive metering systems. Cheaper mechanical types were installed every five years, thus eliminating any incentive to pay more for increased meter lifetime, durability or accuracy. Having a service company invest in more expensive static metering technology shows labor costs, energy costs and added accuracy benefits reaching a justifiable convergence point for static meter investment.”

While further adoption of static technology is driving revenue growth, new legislation and other government initiatives worldwide have been significantly growing shipments for heat meters (as well as heat cost allocators). Recent market development has mainly centered on China, where meter shipments have grown by more than 100% per year from 2007 onwards. In 2011, shipments plateaued to just over 2 million units. New construction and the government’s focus on replacing coal as a source of residential heating are primarily responsible for this market surge. However, with new construction slowing in China, IMS Research has a tempered forecast from 2012 through 2017.

Markides added, “The growth in China alone over the past four or five years has essentially doubled the global heat meter market, however, regulatory change in other countries is now taking effect. For example, in Russia all large buildings on the district heating line must have a hub (district) meter installed. This has grown the market in Russia by more than 50% in 2011 over 2010, with continued growth forecast until 2017. Surpassing Russia, Turkey is forecast to be the world’s fastest growing heat meter market. Here, legislation is in place which promotes both the installation of heat meters and heat cost allocators, while new construction and increasing geothermal heating investment are also poised to drive market growth.”

Data for this analysis is drawn from IMS Research’s latest analysis of the global heat meter market, The World Market for Heat Meters – 2012, which published in May of 2012.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Learn how to create value with re-use; gain productivity with lean automation and connectivity, and optimize panel design and construction.
Go deep: Automation tackles offshore oil challenges; Ethernet advice; Wireless robotics; Product exclusives; Digital edition exclusives
Lost in the gray scale? How to get effective HMIs; Best practices: Integrate old and new wireless systems; Smart software, networks; Service provider certifications
Fixing PID: Part 2: Tweaking controller strategy; Machine safety networks; Salary survey and career advice; Smart I/O architecture; Product exclusives
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Look at the basics of industrial wireless technologies, wireless concepts, wireless standards, and wireless best practices with Daniel E. Capano of Diversified Technical Services Inc.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.