Oil prices drive global flow meter market

Dedham, Massachusetts - Pent up demand in the power, mining, and oil & gas industries is driving strong growth in the global flow meter market, according to a new ARC report.

Having rebounded through 2011-12, sales will continue to move at brisk rates going forward, driven by increased business in the chemical and energy sectors, forecasts Allen Avery, principal author of the ‘Flow meter Global Market Research Study’.

The energy sectors are expected to show the strongest growth in the years ahead. Oil prices are on the rise again with the economic recovery, increased demand, and political and social unrest in the Arab world.

This, believes Avery, should continue to drive demand for flowmeters going forward, as higher prices favour increased exploration, production, and processing of fossil fuels.

Meanwhile, the need to bring refined fuels to growing markets in Asia is predicted to drive construction of pipelines and fuel terminals, increasing demand for custody-transfer capable flow measurement devices. Mining should also see steady growth if commodity prices hold.

In terms of technology, ARC expects more widespread adoption of intelligent field devices such as ultrasonic and Coriolis flowmeters. These devices, it notes, offer much higher measurement accuracy and reliability than older mechanical meters or methods such as orifice plates or PD meters.

“Device intelligence has helped flowmeters to evolve beyond their basic purpose to be indispensable tools for process and business improvement,” comments the ARC report.

Regionally. North America is forecast to see strong activity, particularly if oil prices remain high, justifying continued investments in oil sands projects in Canada. Shale gas plays in the US will also present suppliers with significant opportunities in the coming years.

In the EMEA region, growth will be driven by oil and gas projects in the Middle East and Africa, as well as investments in refining capacity and LNG processing and loading facilities.

Asia, though, will continue to be the engine of global growth as new construction in the power, oil and gas, and water and wastewater sectors continues as the economies in China and India advance, and demand for consumer goods and transportation increases, ARC concluded.