The flowmeter market still offers growth opportunities, according to Frost & Sullivan

Citation

(2001), "The flowmeter market still offers growth opportunities, according to Frost & Sullivan", Sensor Review, Vol. 21 No. 2. https://doi.org/10.1108/sr.2001.08721bab.005

The flowmeter market still offers growth opportunities, according to Frost & Sullivan

The flowmeter market still offers growth opportunities, according to Frost & Sullivan

Keyword: Flowmeters

The flowmeter market, overall, is in a state of transition. Some of its technologies are on the way out, while others are taking advantage of those empty positions and grabbing a greater hold on applications that traditionally belonged to older flowmeter technologies. This market, though mature, still has promising areas of growth and expansion.

According to new strategic research from Frost & Sullivan (www.frost.com), World Flow Sensor Markets, this industry generated revenues of $3.1 billion in 1999. Growth is predicted to remain steady and stable, although growing at a modest compounded annual growth rate. The market is projected to reach revenues of $4.2 billion by 2006.

The world market experienced a decline in demand in the late 1990s, due mostly to the limited investments of end user markets and countries affected by the Asian economic crisis. But the USA avoided this slump. New projects in the water and wastewater industry plus the rise of the semiconductor industry caused the US market to remain stable and even experience some growth.

"Growth rates after 1999 are increasing, as developing countries are expected to recover, spurring demand for flow measurement devices", comments Frost & Sullivan analyst Nelly Anderson. "Countries such as the USA and those in Western Europe are expected to shift some of their demand to the newer types of flowmeters, while developing regions such as Asia and Latin America are expected to continue demanding lower priced, older technology flowmeters".

As in any mature industry, the competition is fierce in the world flow sensor market. The maturity of the market is increasing mergers and acquisitions, thereby reducing the number of market participants. The intense competition is decreasing prices and profit margins in the flow sensor market.

"One way of growing in the flow sensor market is either to offer a flowmeter for a specific application/end user market or to offer a variety of flow sensors to many different end users and/or applications", says Anderson. "The former strategy is more adaptable for small market participants, while the latter option is more for multinational, heavily-financed, widely-distributed manufacturers".

Companies that can offer superior customer service and support, as well as develop sensors with multiple capabilities with minimal price increase, will gain market share in this industry.

Frost & Sullivan presents the 2000 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the world flow sensor industry. The Merger & Acquisition Strategy Award is given to ABB. Endress + Hauser receives the Product Line Strategy Award. The Technology Innovation Award is presented to Panametrics.

This world flow sensor industry research has integrated the market engineering consulting philosophy into the entire research process. Critical phases of this research included: identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through world flow sensor markets.

Contact: Frost & Sullivan, An International Marketing Consulting & Training Company, Chapter House, 22 Chapter Street, London SW1P 4NP, UK. E-mail: Benjamin.Barwick@fs-europe.com; Tel: +44 (0)20 7343 8346; Fax: +44 (0)20 7343 8376; WWW: http://www.frost.com