ARC Predicts Ultrasonic Flowmeter Market to Reach $590 Million by 2012

Propelled by strong growth in the oil & gas industry, the worldwide market for ultrasonic flowmeters is expected to grow at a compounded annual growth rate (CAGR) of 9.9% over the next five years. The market was $367 million in 2007 and is forecasted to be over $589 million in 2012, according to a new ARC Advisory Group study.

“Ultrasonic meters offer a compelling value proposition to users, and stand poised for widespread adoption in the process industries. Given its smaller market size relative to other flow technologies, sustained growth of the hydrocarbon industries, and a large installed base of obsolete and maintenance-heavy mechanical metering technologies ripe for replacement, ARC expects the ultrasonic market to continue to grow at near double-digit rates in coming years,” according to Analyst Allen Avery.

According to ARC, almost all of the growth of the process ultrasonic market in recent years has been due to increased shipments to the oil & gas industry, which nearly doubled over previous levels. It appears that the custody transfer market for natural gas has taken shape, thanks to adoption of the AGA9 custody transfer standard, and the use of ultrasonic meters for liquid custody transfer is increasing.

The largest growth will occur in Asia and EMEA regions, says ARC. China and India are expected to make robust investment in basic infrastructure and new manufacturing plants. As energy-poor China seeks fuel for its rapid economic growth, it will ramp up its oil & gas infrastructure. The Middle East will continue to be fertile ground for ultrasonic meter suppliers, due to its role in oil & gas production. Growth in North America will be relatively modest, but still healthy due to investment in oil & gas infrastructure.