Rapid Flow for Flow Sensors and Transmitters


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An analyst briefing by Sankaranarayanan, industry analyst in Frost & Sullivan's sensors and instrumentation practice.

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Rapid Flow for Flow Sensors and Transmitters

  1. 1. Rapid Flow for “Flow Sensors and Transmitters” Sankaranarayanan, Industry Analyst Sensors & Instrumentation July 19, 2011
  2. 2. Today’s Presenter Sankaranarayanan, Industry Analyst Frost & Sullivan 2
  3. 3. Focus Points 1 Objective & Scope of Research 2 Market Snapshot 3 Industry Challenges 4 Market Dynamics 5 Revenue Analysis 6 Competitive Analysis 7 Summary of Findings 3
  4. 4. Objective and Scope of ResearchObjective• This study focuses on the world market for flow sensors and transmitters. It provides an overview of the market trends, industry challenges, market drivers, market restraints, pricing and technology trends for eleven different flow sensors and transmitters mentioned below. Currency Used : US Dollars Historic Period: 2007-2009 Time Frame Base year: 2010 Short Term 2011-2012 Medium Term 2013-2014 Long Term 2015-2017 Geographic Coverage • World – North America, Europe, APAC, Rest-of-World Technologies/Products Open Channel, Differential Pressure (DP), Variable Area (VA), Positive Displacement (PD), Covered Vortex, Electromagnetic, Coriolis, Insertion Thermal Mass, Ultrasonic, Turbine, MEMS Oil & Gas, Chemical & Petrochemical, Water & Wastewater, Food & Beverage, Pulp & End-user Industries Paper, Pharmaceutical, Power, Metals, Mining, Cement, Steel, Semiconductors 4
  5. 5. Market Snapshot Market Overview Competitive Factors A matured market affected by Performance 2008 recession but expected to Price regain poise Reliability Ultrasonic, Coriolis, Quality Electromagnetic are the major Ease of use product types Services Potential for growth in the energy sector Competing Technologies Conventional flow World Flow sensors & Sensors & Transmitters CAGR (2010-2017) = 4.1% transmitters Markets Market Revenue Potential Areas of Growth China & India Middle-east Global Market Size for flow Latin America sensors and transmitters 2017 – South-east Asia $6.0 Billion Source: Frost & Sullivan 5
  6. 6. Challenges Facing the Industry Achieving Growth Targets in a Mature Market is a challenge Successful Product Differentiation is a challenge Marketing Market Maturity World Flow Sensors & Transmitters Markets Identification of growth opportunities in this market is major challenge A Fragmented and End-user Competitive Dynamics Market Understanding the dynamics of the end users is yet another challenge Source: Frost & Sullivan 6
  7. 7. Market Drivers and Restraints Flow Sensors & Transmitters Market: Market IMPACT Drivers and Restraints (World), 2011-2017 1-2 Years 3-4Years 5-7 Years • Trend Towards Energy Efficiency High High High Market Drivers • Demand from Oil & Gas, Chemical & Petrochemical High High High • Re-initiation of Projects High High Medium • Development in Emerging Economies Medium Medium High • Lack of a turn-key solution act as a Medium Low Low drawback Market Restraints • Electronic Flowmeters Restrain Growth of Medium High High Mechanical Flowmeters • Price Pressure Affects Market Revenues High Medium Low • Maturity in Developed Markets High High High 7
  8. 8. Flow Sensors Market to Cross $6.0 Billion in 2017 Flow Sensors & Transmitters Market: Revenue Forecasts (World), 2007-2017 Revenues ($ Million) Revenue Growth Rate (%) 7,000.0 6.0 6,000.0 5.0 Revenue Growth Rate Revenues ($ Million) 5,000.0 4.0 4,000.0 (%) 3.0 3,000.0 2.0 2,000.0 1,000.0 1.0 0.0 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan 8
  9. 9. Product Segmentation Flow Sensors & Transmitters Market: Percent of Revenues by Product Type (World), 2010 Turbine Positive Displacement Variable Area OC DP VA PD TR VO EM CO TM US MEM S Flow Sensors & Transmitters M arket: Percent of Revenues by Product Type (World), 2017 Ultrasonic Coriolis Electromagnetic OC DP VA PD TR VO EM CO TM US MEMS Source: Frost & Sullivan 9
  10. 10. China and India to Increase Demand for InstrumentationIncluding Flow Sensors and Transmitters 2500.0 2010 2000.0 1500.0 ($ Million) Revenues 1000.0 500.0 0.0 North America Europe APAC Rest-of World Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan • Growth in the energy markets in these regions is a major driver. Investments in basic infrastructure and the emergence of new plants in china and India are expected to increase the demand for instrumentation including flow sensors and transmitters. Rise in oil & gas production in the Middle East will be a driver for product such as ultrasonic flow sensors and transmitters.N953-11 10
  11. 11. Competitive Analysis • Manufacturers should be willing to invest heavily in Research & R&D, engineering and configuration to take accuracy Development and reliability to the next level, to emerge as market leaders and to stay on top of their customer needs. • Customers prefer turn-key solutions. Offering a Product Portfolio complete solution bodes well with end users. In addition, wide array of product offering by the supplier is an added advantage as well. • Customers prefer to understand the cost associated with the sensors for each applications and end-user Price industry. Since end users look for less expensive solutions, competitive pricing of products is viewed as a major factor by the customers. • Performance related parameters such as information Accuracy & accuracy, reliability and ease of use are key to Reliability successful implementation. Better performance enhances customer loyalty and is considered to be key purchasing factor in choosing a supplier. • Services and support is considered to be a major Services part of the customers purchasing decision. Customer responsiveness and easy access to support personnel are key aspects of services and support. Source: Frost & Sullivan 11
  12. 12. Summary of Findings A market affected by the recent economic recession, but investment climate post-recession is expected to drive growth Re-investment, renovation, modernization, expansion, and technology development to drive growth in the post-recession period Summary Global Flow Sensors & Transmitters Market to Reach US $6.0 of Billion by 2017 Findings Energy sector to provide key opportunities for flow sensors and transmitters’ market growth No new core sensing technologies developed but R&D to play a key role in the design of flow sensors and transmitters 12
  13. 13. Next Steps Request a proposal for or Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. (myfrost@frost.com) 1-877-GoFrost (1-877-463-7678) Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth (www.gil-global.com) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 13
  14. 14. Your Feedback is Important to Us What would you like to see from Frost & Sullivan? Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by “Rating” this presentation. Frost & Sullivan’s Growth Consulting can assist with your growth strategies 14
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  16. 16. For Additional Information Sarah Saatzer Angie Montoya Corporate Communications Global Analyst Briefing Coordinator Measurement & Instrumentation Marketing (210) 477-8427 (210) 247-2435 Sarah.saatzer@frost.com amontoya@frost.com Kiran Unni Research Manager Measurement & Instrumentation (210)247-2495 kiranunni@frost.com 16