FLOW METER MARKET ANALYSIS

Market Challenges And Opportunities

Global flow meter market - Drivers

Growing demand for Flow Meters in Oil & gas segment

Among end-use industries, the oil & gas segment is expected to hold a dominant position in the global flow meter market during the forecast period. This is attributed to the rapid growth of the industry. The development of shale gas reserves is also propelling the demand for flow meters in the oil & gas industry. For instance, In January 2023, report published Statista forecasted that Shale gas and tight oil production in the United States is forecast to increase to nearly 34 trillion cubic feet by 2050, up from 24.91 trillion cubic feet in 2021.

flow meters are an effective solution to measure the flow rate of upstream and downstream processes, liquid hydrocarbons, and custody transfer within the oil & gas industries.

Increasing energy efficiency initiatives

Energy efficiency has become a priority for many industries to reduce operating costs and minimize their carbon footprint. Flow meters are essential for measuring energy consumption and optimizing energy usage in various processes, including Heating, Ventilation, and Air Conditioning (HVAC), fluid handling systems, and power generation. The focus on energy efficiency drives the demand for flow meters.

For instance, Shri R K Singh, Union Minister for Power and MNRE inaugurated “Aiming for Sustainable Habitat: New Initiatives in Building Energy Efficiency 2021.”

Emerging markets and industrialization

Rapid industrialization and infrastructure development in emerging economies like China, India, Brazil, and Southeast Asian countries are driving the demand for flow meters. Industries in these regions are investing in flow meters to improve process efficiency, enhance product quality, and comply with environmental regulations.

Global flow meter market - Opportunities

Growing focus on water and energy management

Water and energy conservation have become critical concerns worldwide due to increasing environmental regulations and the need for sustainable practices. Flow meters play a crucial role in measuring water and energy consumption, facilitating efficient management and conservation. The growing emphasis on water and energy management presents opportunities for flow meter manufacturers to cater to this demand.

Expansion of industrial infrastructure

Developing economies, particularly in Asia Pacific, Latin America, and Africa, are witnessing rapid industrialization and infrastructure development. Industries such as oil and gas, power generation, and manufacturing require flow meters for process optimization, resource management, and regulatory compliance. The expansion of industrial infrastructure in these regions presents significant growth opportunities for flow meter providers.

Adoption of industrial automation and Industry 4.0

Industry 4.0 is the fourth industrial revolution that is set to reshape the manufacturing and production industry by integrating digitization trends and technologies with industrial processes.

The implementation of industrial automation and the concept of Industry 4.0 are gaining momentum across various industries. Flow meters are an integral part of automated systems, providing real-time data for process control, efficiency improvement, and predictive maintenance. The increasing adoption of industrial automation and Industry 4.0 is creating opportunities for flow meter manufacturers to cater to this demand.

Global flow meter market - Restraints

Price fluctuations in raw materials

The operating range and Material of Construction (MoC) of flow meters affect their price. Metal, polymers, and alloys are just a few of the materials used to make flow meters. It is difficult for OEMs to obtain high-quality raw materials and manage delivery schedules imposed by suppliers due to fluctuating prices for these materials, which pushes up the price of flow meters. The COVID-19 pandemic disrupted the global supply chain, which had an impact on the cost of raw materials. As a result, it becomes challenging to keep commitments, and manufacturers suffer significant losses.

• Price fluctuations in raw materials