Dedham, MA; March 24, 2003: 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%, according to a new 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 (phollywood@arcweb.com), the author of ARC''s Magnetic Flowmeter Worldwide Outlook.
Lack of capital investment due to current manufacturing overcapacity, the downturn in cyclical industries such as chemical, pulp and paper, and mining have combined with an overall sluggish economic outlook to inhibit the growth prospects for magnetic flowmeters. However, the increasingly stringent environmental regulations will positively impact growth in the water and wastewater industry. Also, the hybrid industries will provide new growth opportunities for magnetic flowmeters as the food and beverage and pharmaceutical industries are experiencing growth.
The mature markets of Europe and North America have basically become replacement markets because they are virtually saturated and are experiencing little organic growth. The Asian market, primarily China and India, presents the best opportunities for magnetic flowmeter growth on a regional basis as these countries continue to build service infrastructure and an industrial base. Both China and India are also emerging as low-cost manufacturing centers for suppliers.
Factors Contributing to Growth
With stringent environment regulations, the process industry, particularly chemical, pulp and paper, and water and 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 and 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 grassroots 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.