Innovation is the driving force behind the aggressive growth rate expected for Coriolis flowmeters. ARC expects the worldwide market for Coriolis flowmeters to grow at a Compounded Annual Growth Rate (CAGR) of 8.9 percent over the next five years. The market was $404 million in 2003 and is forecasted to reach $617 million in 2008, according to a new ARC Advisory Group study.

Innovative signal processing methods and tube construction have broadened the application range and improved the accuracy of this extremely versatile technology. “Supplier efforts to make Coriolis technology more stable and user-friendly are very apparent in the current generation of flowmeters. Improved digital signal processing techniques have improved Coriolis performance even in applications with entrained air, ” according to Paula Hollywood, Field Systems Analyst, the principal author of ARC’s “Coriolis Flowmeter Worldwide Outlook”.

Coriolis for Natural Gas Measurement

Measurement of natural gas is emerging as a significant growth opportunity for Coriolis flowmeters. Recognition by the American Gas Association (AGA) of Coriolis meters for natural gas applications including production, processing, transmission, storage, distribution, and end-use fuel measurement opens a new market for the technology. Compressed Natural Gas (CNG) is being used increasingly as an alternative fuel in transportation due to its low pollution levels. Metering must be performed at every point in the delivery system from CNG compressor stations to dispensers at retail outlets. Due to its ability to measure mass flow directly, Coriolis meters have a distinct advantage over other flow metering technologies for CNG applications.

Advantages of Technology Means Low TOC

The advantages of Coriolis flowmeters such as no moving parts, minimal maintenance requirements, and direct mass measurement translates into low total cost of ownership (TCO) for users. Mass measurement with Coriolis is impervious to changes in pressure, temperature, viscosity, and density, making it advantageous in many applications. Suppliers are leveraging the inherent advantages of the technology to develop meters for niche applications.

Most Rapid Growth in Asia

With such a large concentration of chemical, petrochemical, and oil & gas refining industries in the EMEA (Europe, Middle East, Africa) region, it remains the largest market for Coriolis flowmeters. It is followed closely by North America. However, the Asian market is poised to rapidly grow the most. The growing Chinese economy represents the best opportunity for growth in Asia as the country continues to develop its industrial base. India also presents significant potential as it now has the financial resources to develop its own industrial base.

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The worldwide Magnetic Flowmeter market, which totaled nearly $590 million in 2002, is projected to reach $650 million by the end of 2007, expanding at a Compound Annual Growth Rate (CAGR) of just under 2 percent, according to a recent study by ARC Advisory Group.

“The magnetic flowmeter market is facing serious challenges on several fronts, but has stability due to the inherent strengths of the technology. Magnetic flowmeters have no moving parts, a flow path without obstructions, and low maintenance,” according to Senior Analyst Paula Hollywood, the author of ARC’s Magnetic Flowmeter Worldwide Outlook.

On the plus side, hybrid industries will provide new growth opportunities for magnetic flowmeters as the food & beverage and pharmaceutical industries are experiencing growth. And, the increasingly stringent environmental regulations will positively impact growth in the water & wastewater industry. On the minus side, due to current manufacturing overcapacity, capital investment is lacking. The downturn in cyclical industries such as chemical, pulp & paper, and mining have combined with an overall sluggish economic outlook to inhibit the growth prospects for magnetic flowmeters.

A regional review shows weak areas and opportunities. European and North American markets have matured. They have become replacement markets due to saturation of existing applications and little new, organic growth. The Asian market, primarily China and India, present the best opportunities for magnetic flowmeter growth. These countries continue to build their industrial base and service infrastructure. Both China and India are also emerging as low-cost manufacturing centers for suppliers.

Factors Contributing to Growth

With stringent environmental regulations, the process industry, particularly chemical, pulp & paper, and water & wastewater, have all come under intense scrutiny by authorities. This should provide a boost to magnetic flowmeters and increase unit volumes. Furthermore, privatization of municipal water & wastewater services is a global trend that is generating new investments to upgrade aging water and sewer systems.

Multivariable magnetic flowmeters that can measure temperature and pressure in addition to flow are commercially available. While 2002 shipments of such meters were negligible, they are expected to increase throughout the forecast period. These added measurement capabilities will enable users to purchase fewer devices, require fewer process penetrations, and reduce the number of potential leak paths. Also, magnetic flowmeters suitable for flow measurement in the partially filled pipes, enhanced electrodes to improve signal to noise ratios, and non-contact electrodes are all examples of product innovations that should hold the interest of users in magnetic flowmeter technology.

Traditionally, magnetic flowmeters require four-wires for power and signal operation. Two-wire devices that can reduce wiring costs and simplify installation will be more popular in grass roots plants with fieldbus capability. While use of two-wire magnetic flowmeters will increase over the forecast period, the majority of shipments are expected to be four-wire for use as direct replacements.

The worldwide ultrasonic flowmeter market is expected to grow at a Compound Annual Growth Rate of 7.9 percent over the next five years. Driving this robust growth is the emerging adoption of ultrasonic flowmeters for custody transfer measurement of refined liquid petroleum products and natural gas. The market was nearly $406 million in 2003, and is forecasted to be a little less than $600 million by the end of 2008, according to a study by ARC Advisory Group.

User demand for maintenance-free and high-precision flowmeters has prompted suppliers to introduce new products to industries that need accuracy, such as oil & gas and district heating. “After a tarnished past, new ultrasonic flowmeters are raising the bar against which all flowmeter technologies must be judged. Ultrasonic technology will increasingly become the technology of choice and not merely an alternative to traditional flowmeter technologies,” according to ARC Research Director Wil Chin, author of ARC’s Ultrasonic Flowmeter Worldwide Outlook. “The non-contact and non-intrusive nature of ultrasonic flow technology poses a challenge to the traditional flowmeters in process industries.” Not surprisingly, price remains a major issue.

Ultrasonic Flowmeter Versatility

Ultrasonic flowmeters are available in a variety of configurations for a number of different applications and at various price levels. The multi-beam versions accurately measure fluids by minimizing the negative effects of swirl, viscosity, and other installation effects. Ultrasonic is one of the few technologies that are versatile enough to measure not only liquids and gases but also steam. Additionally, measurement without pressure drop can save significant pumping costs in applications requiring high pressure or long transport distances. And, unlike mechanical flowmeters, the maintenance of these meters are greatly simplified by the virtue of no moving parts. Ultrasonic flowmeters are impervious to issues that beset traditional flow technologies, such as the inevitable wear of orifice plates and bearing and rotor failures in turbine meters.

Custody Transfer

The recent approval of ultrasonic standards for precision ultrasonic flowmeters is setting the stage for the robust growth. The American Petroleum Institute (API) draft standard for liquid hydrocarbon custody transfer applications, American Gas Association (AGA) for natural gas applications, and International Organization for Legal Metrology (OIML) for international custody transfer applications provides strong support for the expected growth in this segment.

Growth Areas and Challenges

While shipments to Europe, Middle East, and Africa (EMEA) lead all regions, the North American market is expected to grow slightly faster. Much of this is due to pipeline infrastructure upgrades necessary to meet increasing demand for energy in the US. Not to be overshadowed by the US, EMEA will continue to grow as significant capital is invested in Western Europe to build new infrastructure to transport petroleum and natural gas from reservoirs in Russia to populated regions. The increasing adoption of ultrasonic technology provides opportunities for both suppliers of ultrasonic and competing technology alike. According to Wil Chin, “The endorsement of ultrasonic flowmeters by users will challenge traditional and ultrasonic flowmeter suppliers to introduce new products to stay competitive with users as the ultimate benefactor.”

Dedham, Massachusetts; August 5, 2004: Double-digit unit and revenue growth for magnetic flowmeters in China will be driven by investments in infrastructure. Revenues for the magnetic flowmeter market in China are expected to grow at a Compound Annual Growth Rate (CAGR) of 10.7 percent over the next five years. The market was slightly more than $46 million in 2003 and is forecasted to be nearly $77 million in 2008, according to ARC Advisory Group’s new Magnetic Flowmeter Outlook for China Through 2008 study.

The Chinese government is concerned that uneven distribution of water resources may have an adverse impact on sustainable development. As a result, it is investing an estimated US $22 billion in water and wastewater treatment projects. “The industrial revolution currently taking place in China is unprecedented. Investments in the water & wastewater industries in China bode well for magnetic flowmeter suppliers as magmeters are used extensively in these industries,” according to Analysts Paula Hollywood and Narayan Gokhale, authors of the new market study.

Witnessing an Industrial Revolution

Infrastructure development projects on a massive scale are being driven by the migration of millions of low paid workers from the countryside to the cities. Road, rail, water, power, and sewage treatment projects are expected to continue through the year 2020 when, according to estimates, 300 million of the total population of 1,300 million will have migrated to the cities.

Two decades of rapid industrialization and sustained high overall economic growth have fueled the demand for industrial goods, while economic reform and greater openness to foreign investment have stimulated local production and exports. China’s elevated role in global trade continues to transform the landscape of entire industries and the country has become a mecca for automation suppliers.

Penchant for Latest Technology

A number of magnetic flowmeter technological developments are broadening the application range of magnetic flowmeters. Magmeters for partially filled pipes can be invaluable in the China market where the use of such meters will not only meet current capacity requirements and still be suitable for full scale requirements in the future. Non-contacting electrodes enable magmeters of this design to be suitable for problematic applications including latex, asphalt, ultra-high purity water, alcohols, glycerins, and suspended fruit. The penchant for the latest automation technology by Chinese manufacturers has been a boon for the fieldbus technology. Battery powered meters are finding growing acceptance for remote installations, particularly in water & wastewater pipelines.

Industrial Opportunities Abound

Other process industries with projected double digit magnetic flowmeter growth are metals & mining, pulp & paper, and pharmaceutical. China has become a force to be reckoned with in the global mining market. The National Plan for Building a Complete Industrial Chain between the Forestation and Paper Making Sectors includes planting five million hectares of fast-growing trees and the construction of large, modern paper mills close to the re-forested areas. China is a large medicine producer with more than 6,700 pharmaceutical enterprises. China represents one of the world's fast-growing over-the-counter (OTC) drug markets and is also the world's second largest producer of pharmaceutical chemicals.