Vortex flowmeter market navigates through recession
Driven by strong capital expenditures from the upstream oil & gas industry, increased accuracy and reliability of the devices, and low total cost of ownership (TCO), the worldwide market for vortex flowmeters has witnessed strong growth in recent years. This growth moderated in 2009 with the global recession serving as a strong headwind. ARC believes the market will succumb to the pressures of the economic collapse going forward and negative market growth is expected in 2010 and 2011.
Led by a strong automation market and steadfast demand from the chemical market, the vortex flowmeter market has seen strong growth in the past five years. Increased adoption of smart transmitters, continued emphasis on multivariable technology, and increased accuracy resulting from the advancement of vibration eliminating techniques 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 prolonged 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 (jgillespie@arcweb.com), the principal author of ARC’s “Vortex Flowmeter Worldwide Outlook”.
Economic Landscape to Dictate Market Performance
Several economic trends threaten to adversely affect shipments of vortex flowmeters over the forecast period. The severity of these factors combined with the length of the economic downturn will have a large impact on the performance of the vortex flowmeter market. However, sustained emphasis on plant safety, multivariable sensing, and increasing accuracy will continue to drive sales of intelligent vortex flowmeters. ARC believes these factors will largely cancel each other out over the five year forecast period and the market will continue to grow, albeit at a below average rates.
Several economic trends threaten to adversely affect shipments of vortex flowmeters over the forecast period. The severity of these factors combined with the length of the economic downturn will have a large impact on the performance of the vortex flowmeter market. However, sustained emphasis on plant safety, multivariable sensing, and increasing accuracy will continue to drive sales of intelligent vortex flowmeters. ARC believes these factors will largely cancel each other out over the five year forecast period and the market will continue to grow, albeit at a below average rates.
Multivariable Meters Increase Accuracy and Efficiency
Sales of multivariable vortex flowmeters, one unit that measure two or more process variables, have gained traction in the market, resulting from increased accuracy and the ability to be used in a wide range of applications. The most popular multivariable field devices utilize an embedded temperature sensor. This allows the transmitter to calculate the density and mass flow rate of the process which significantly increases the application scope of these devices. Users gravitate toward multivariable units because fewer instruments are required to obtain the same information. This means less insertion points need to be cut into the process piping and more accurate density and mass flow calculations are generated because flow, temperature, and pressure measurements are taken from the same point in the pipe.
Sales of multivariable vortex flowmeters, one unit that measure two or more process variables, have gained traction in the market, resulting from increased accuracy and the ability to be used in a wide range of applications. The most popular multivariable field devices utilize an embedded temperature sensor. This allows the transmitter to calculate the density and mass flow rate of the process which significantly increases the application scope of these devices. Users gravitate toward multivariable units because fewer instruments are required to obtain the same information. This means less insertion points need to be cut into the process piping and more accurate density and mass flow calculations are generated because flow, temperature, and pressure measurements are taken from the same point in the pipe.
Asia and The Middle East Offer Highest Growth Potential
Regionally, suppliers can expect to see the largest growth in the Middle East, due to its high concentration of oil & gas activities, and in Asia, where heavy investment in new plant construction continues in core sectors. In the mature Western European market, suppliers will largely rely on replacement business. Growth is expected to be negative in the North American market, with the only bright spot being the increasing adoption of steam extraction methods in the Canadian tar sands. Latin America will see above average growth, but remain a relatively small market for vortex flowmeter suppliers.
Regionally, suppliers can expect to see the largest growth in the Middle East, due to its high concentration of oil & gas activities, and in Asia, where heavy investment in new plant construction continues in core sectors. In the mature Western European market, suppliers will largely rely on replacement business. Growth is expected to be negative in the North American market, with the only bright spot being the increasing adoption of steam extraction methods in the Canadian tar sands. Latin America will see above average growth, but remain a relatively small market for vortex flowmeter suppliers.
For more information on this study, visit ARC's Market Research section.