Dedham, Massachusetts; February 27, 2007: The worldwide market for magnetic flowmeters is expected to grow at a compounded annual growth rate (CAGR) of 3.5% over the next five years. The market was $730.4 million in 2006 and is forecasted to be nearly $866 million in 2011, according to a new ARC Advisory Group study.
The market for magnetic flowmeters has seen considerable growth in recent years because of an upbeat automation market and an increased demand in the water and wastewater treatment sectors. “Despite being a mature technology, magnetic flowmeters are holding their own against other flowmeter technologies. They are a cost-effective alternative to Ultrasonic and Coriolis meters, and they continue to be the preferred technology for many flow measurement applications,” according to Automation Analyst Allen Avery ([email protected]), the principal author of ARC’s “Magnetic Flowmeter Worldwide Outlook” (www.arcweb.com/res/magflow).
Water and Wastewater Projects Fuel Growth
Increased demand in the water and wastewater sectors, which make up more than a third of the overall market, helped suppliers grow revenues at higher than expected rates. Shipments for water and waste applications grew significantly in the last few years. Going forward, the water and wastewater industry will continue to provide magmeter suppliers with the strongest opportunities for growth, as developing countries build capacity, and developed nations repair or rebuild their aging water infrastructures.
Magmeters Maintaining Market Share
Magnetic flowmeters face competition from Coriolis and Ultrasonic meters. The aggressive pricing of these other flowmeter technologies poses a formidable challenge, and both meter types have made significant inroads in the overall flow market. Coriolis meters compete head to head with magmeters at small-diameter pipe sizes, while ultrasonic meters offer a compelling alternative to magnetic meters at medium and large pipe diameters. In spite of this, magnetic flowmeters are still the technology of choice for many applications, and remain competitive in many applications because of the simplicity of their design and a lower average selling price compared to ultrasonic and Coriolis meters.
Asia, Home to Greenfield Projects, to Lead Growth
China offers the strongest growth opportunities for magnetic flowmeter suppliers, as it works to satisfy the increasing demand by its population for necessities, such as power and water. Over the next decades, the country will make significant investments in its water and wastewater infrastructure to stave off water scarcity, and it will continue to build power plants to satisfy the needs of its growing economy. Demand in developed regions, such as North America and Europe, will be more modest, and suppliers can expect to see more replacement business than Greenfield projects.
For more information on this study, go to: www.arcweb.com/res/magflow
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Filed Under: Automotive, Factory automation, Fluid power, Hydraulic equipment + components, Materials • advanced