The Flowmeter Market Is in a State of Transition, According to New Research Report

Though the flowmeter market is predicted to remain stable, manufacturers can expect growth opportunities in the coming years.

Research analysts at Frost & Sullivan are saying that some of the flowmeter market's 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
New research from Frost & Sullivan, "World Flow Sensor Markets," shows that the 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 United States avoided this slump. New projects in the water and wastewater industry plus the rise of the semiconductor industry caused the U.S. 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," says Frost & Sullivan analyst Nelly Anderson. "Countries such as the United States 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 lowered prices, older technology flowmeters."

Like 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 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.

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