Asia-Pacific to become largest flowmeter market in 2013

From 2011 to 2017, Asia-Pacific is also forecast to be the fastest-expanding region for flowmeter sales with a compound annual growth rate (CAGR) of 10.5%. See chart.

07/17/2013


IMS Research (acquired by IHS, Inc.)The Asia-Pacific region this year will become the world’s largest market for flowmeters with sales revenue of $1.7 billion, according to IMS Research, now part of IHS Inc.

From 2011 to 2017, Asia-Pacific is also forecast to be the fastest-expanding region for flowmeter sales with a compound annual growth rate (CAGR) of 10.5%. This high growth can be attributed to greenfield investment, together with an increasing need for greater flow-measurement accuracy.

Growth drivers

“China and India in 2013 will continue their decade-long effort to invest in infrastructure to address the needs of their growing population and rising energy requirements,” said Kiran Patel, process instrumentation and control analyst at IHS. “Capital expenditures in the oil and gas, chemical and power, and refining and petrochemical industries in these countries will drive demand for process instrumentation and measuring devices, including flowmeters.”

Many of the factors that are driving revenue growth for flowmeters in China and India are also evident globally.

 “With a growing focus on environmental conservation, the monitoring of greenhouse gas emissions is increasingly important as businesses are keen to portray themselves as being green,” Patel said. “Another progressively important application is custody transfer. In the oil and gas industry, for instance, rising energy costs have driven the need for greater flow-measurement accuracy given that small percentage errors can result in significant costs.”

Cheap labor vs. flowmeters—and the price of quality

While China historically has had an abundance of human resources for low-skilled jobs, labor costs are rising and young people overall are choosing to pursue higher education, likely leading to the reduction in supply of cheap, low-skilled labor in the country. Such constraints in the labor force have affected process facilities in particular, resulting in a lack of technical, hands-on expertise at plant sites because low-skilled staff for the most part has been employed.

To help fill the gap, businesses are utilizing so-called smart flowmeters, which not only are easier to use and maintain but also provide online diagnostics if required. Still, these smart flowmeters come at a price premium—something that businesses are not always able or willing to pay. Instead, companies resort to using mechanical flowmeters—among the easiest to duplicate, with an increasing number of Asian manufacturers making the machines at low cost, often compromising quality.

And while local end-user industries with limited regional reach are most likely to invest in such products, typical process facilities tend to be managed by global players whose corporate image is paramount. Here reputations are at stake and large corporations cannot be seen to be using low-quality products that could affect production and efficiency or pose a safety risk to operators.

In such applications or scenarios, it is to the long-term advantage of manufacturers to use highly accurate flowmeter types, such as Coriolis, thermal mass and ultrasonic. IHS believes that these markets will experience growth rates of 16.0%, 14.8%, and 12.3%, respectively, from 2011 through 2017.

Asia presents rich opportunities

Emerging Asian economies present an attractive destination for established flowmeter suppliers to set up manufacturing and sales bases.

Here they will come across companies with varying attitudes to pricing, with some happily settling for low-cost products from local suppliers, ultimately sacrificing quality. Because flowmeter products are generally viewed as commodity items by these types of end-users, it is unlikely that major flowmeter and instrumentation suppliers will gain an advantage by selling to this market, which would entail a loss of profit margin for their more sophisticated product offerings.

But as China and India begin to realize the benefits of investing in more efficient flowmeters, these more advanced products are sure to drive growth of the flowmeter market in the region.

Source: IHS, Inc.

- Edited by Control Engineering, Consulting-Specifying Engineer, and Plant Engineering, part of CFE Media.

See more from IMS Research.

 



Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
October 2018
HMI hardware evolution, Data acquisition strategies, Matching motors and drives, Machine vision advice
September 2018
Optimize controls via cloud software, ladder logic simulation, industrial wireless best practices
August 2018
Augmented reality and virtual reality education, autotuning PID control, cybersecurity advice, educating engineers
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
SIDB

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

October 2018
2018 Product of the Year; Subsurface data methodologies; Digital twins; Well lifecycle data
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, progressive cavity pumps
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
October 2018
HMI hardware evolution, Data acquisition strategies, Matching motors and drives, Machine vision advice
September 2018
Optimize controls via cloud software, ladder logic simulation, industrial wireless best practices
August 2018
Augmented reality and virtual reality education, autotuning PID control, cybersecurity advice, educating engineers
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
SIDB

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

October 2018
2018 Product of the Year; Subsurface data methodologies; Digital twins; Well lifecycle data
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, progressive cavity pumps
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
October 2018
HMI hardware evolution, Data acquisition strategies, Matching motors and drives, Machine vision advice
September 2018
Optimize controls via cloud software, ladder logic simulation, industrial wireless best practices
August 2018
Augmented reality and virtual reality education, autotuning PID control, cybersecurity advice, educating engineers
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
SIDB

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

October 2018
2018 Product of the Year; Subsurface data methodologies; Digital twins; Well lifecycle data
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, progressive cavity pumps
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me