Traditional Flowmeters Dominate the Gas Flowmeter Market, Finds New Flow Research Study

Wakefield, Massachusetts; November 10, 2004 — The worldwide gas flowmeter market equaled $680 million in 2003, according to a new market study from Flow Research. The study is called The World Market for Gas Flow Measurement, and it includes eight types of flowmeters. Revenues from the sale of gas flowmeters are projected to increase at a compound annual growth rate (CAGR) of 1.4 percent through 2008, when they are expected to equal $729 million. North America accounts for 37 percent of the total, while Europe accounts for just over 31 percent. The fastest growth will occur in the Rest of World and Asia without Japan regions.

In 2003, revenues from positive displacement (PD) flowmeters exceeded revenues from all other gas flowmeter types. The large majority of these revenues were from positive displacement flowmeters sold for utility and billing applications. Turbine flowmeters were the second leading type of flowmeter sold for gas applications, followed by differential pressure (DP) flowmeters.

Traditional technology flowmeters, especially positive displacement and turbine meters, dominate the gas flow measurement market. Ultrasonic meters are the biggest revenue generator among new-technology meters. They have made a major impact on the market for custody transfer of natural gas, and they are also now being used for billing and utility applications of natural gas. However, Coriolis meters have had a more limited use for gas flow measurement, since the low density of gas presents difficulties for the use of Coriolis meters to measure gas flow. The vortex and thermal flowmeter markets are relatively small, and have only shown moderate growth.

Ultrasonic flowmeters are projected to be the fastest growing type of meter used to measure gas flow. Ultrasonic flowmeter revenues are projected to show a CAGR of 10.9 percent throughout the forecast period. Growth in the use of ultrasonic flowmeters will be driven by their use in custody transfer of natural gas, and for process gas and check metering applications. Market acceptance of ultrasonic flowmeters is broadening as they receive more approvals from industry associations and as end-users become more familiar with them. Coriolis flowmeter revenues are projected to be the second-fastest growing of any type of flowmeter used to measure gas flow through 2008.

Flow Research, Inc.

Flow Research is a market research company that specializes in providing market data and strategies on flow, pressure, and temperature. Dr. Jesse Yoder, who has 17 years’ experience as a writer and analyst in process control, founded Flow Research in 1998. The company recently completed a series of eleven market studies on the worldwide flowmeter market. More information is available at www.flowresearch.com.

Another service provided by Flow Research is the Worldflow Monitoring Service. This Worldflow service includes monthly reports on the flow and process industries. These reports include the Worldflow Barometer, Worldflow Monitor, and Worldflow Perspective. The service is designed to provide up-to-date information between market studies. Flow Research can provide charts and graphics from The World Market for Gas Flow Measurement upon request. A chart is available at www.flowresearch.com/news.html.

Total Shipments of Gas Flowmeters Worldwide

(Millions of Dollars)

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