Rapid Flow for Flow Sensors and Transmitters

Rapid Flow for “Flow Sensors and Transmitters”

Sankaranarayanan, Industry Analyst

Sensors & InstrumentationSensors & Instrumentation

July 19, 2011

Today’s Presenter

Sankaranarayanan, Industry Analyst

Frost & Sullivan

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Focus Points

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Market SnapshotMarket Snapshot

Industry ChallengesIndustry Challenges

Objective & Scope of ResearchObjective & Scope of Research

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66 Competitive AnalysisCompetitive Analysis

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Market DynamicsMarket Dynamics

Revenue AnalysisRevenue Analysis

77 Summary of FindingsSummary of Findings

Objective and Scope of Research

Objective

• 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

Base year: 2010

Time Frame

Historic Period: 2007-2009

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Geographic Coverage • World – North America, Europe, APAC, Rest-of-World

Technologies/Products Covered

Open Channel, Differential Pressure (DP), Variable Area (VA), Positive Displacement (PD),

Vortex, Electromagnetic, Coriolis, Insertion Thermal Mass, Ultrasonic, Turbine, MEMS

End-user IndustriesOil & Gas, Chemical & Petrochemical, Water & Wastewater, Food & Beverage, Pulp & Paper, Pharmaceutical, Power, Metals, Mining, Cement, Steel, Semiconductors

Short Term

Medium Term

Long Term

2011-2012

2013-2014

2015-2017

Base year: 2010

Time Frame

World Flow

Market Overview

�A matured market affected by

2008 recession but expected to

regain poise

�Ultrasonic, Coriolis,

Electromagnetic are the major

product types

�Potential for growth in the energy

sector

Competing Technologies

�Conventional flow

Competitive Factors

�Performance

�Price

�Reliability

�Quality

�Ease of use

�Services

Market Snapshot

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Potential Areas of Growth

�China & India

�Middle-east

�Latin America

�South-east Asia

World Flow Sensors & Transmitters Markets

�Conventional flow

sensors &

transmittersCAGR (2010-2017) = 4.1%

Market Revenue

� Global Market Size for flow

sensors and transmitters 2017 –

$6.0 Billion

Source: Frost & Sullivan

Challenges Facing the Industry

World Flow Sensors &

Successful Product Differentiation

is a challenge

Market Maturity

Marketing

Achieving Growth Targets in a

Mature Market is a challenge

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Source: Frost & Sullivan

A Fragmented and

Competitive Market

World Flow Sensors & Transmitters Markets

Identification of growth

opportunities in this market is

major challenge

End-user Dynamics

Understanding the dynamics

of the end users is yet another

challenge

Market Drivers and RestraintsMarket Drivers

•Trend Towards Energy Efficiency

Flow Sensors & Transmitters Market: Market Drivers and Restraints (World), 2011-2017

•Demand from Oil & Gas, Chemical & Petrochemical

IMPACT

1-2 Years 3-4Years 5-7 Years

High High High

High

High

High

High

High

Medium•Re-initiation of Projects

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•Development in Emerging Economies

Market Restraints

•Price Pressure Affects Market Revenues

•Electronic Flowmeters Restrain Growth of Mechanical Flowmeters

Medium HighMedium

High High

Medium

Medium High High

Low

•Maturity in Developed Markets

• Lack of a turn-key solution act as a drawback

High

High

Medium Low Low

Flow Sensors Market to Cross $6.0 Billion in 2017

Flow Sensors & Transmitters Market: Revenue Forecasts (World), 2007-2017

4,000.0

5,000.0

6,000.0

7,000.0

4.0

5.0

6.0

Revenues ($ Million) Revenue Growth Rate (%)

Revenues ($ Million)

Revenue Growth Rate

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Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

0.0

1,000.0

2,000.0

3,000.0

4,000.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year

0.0

1.0

2.0

3.0

Revenues ($ Million)

Revenue Growth Rate

(%)

Product Segmentation

Flow Sensors & Transmitters Market: Percent of

Revenues by Product Type (World), 2010

Positive Displacement

Turbine

Variable Area

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OC DP VA PD TR VO EM CO TM US MEMS

Flow Sensors & Transmitters Market: Percent of

Revenues by Product Type (World), 2017

OC DP VA PD TR VO EM CO TM US MEMS

Source: Frost & Sullivan

Ultrasonic

Electromagnetic

Coriolis

China and India to Increase Demand for Instrumentation Including Flow Sensors and Transmitters

500.0

1000.0

1500.0

2000.0

2500.0

Revenues

($ Million)

2010

N953-11 10

Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

0.0

North America Europe APAC Rest-of World

• Growth in the energy markets in these regions is a major driver. Investments inbasic infrastructure and the emergence of new plants in china and India areexpected to increase the demand for instrumentation including flow sensors andtransmitters. Rise in oil & gas production in the Middle East will be a driver forproduct such as ultrasonic flow sensors and transmitters.

Competitive Analysis

Research & Development

Product Portfolio

• Customers prefer turn-key solutions. Offering a complete solution bodes well with end users. In addition, wide array of product offering by the supplier is an added advantage as well.

• Manufacturers should be willing to invest heavily inR&D, engineering and configuration to take accuracyand reliability to the next level, to emerge as marketleaders and to stay on top of their customer needs.

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Source: Frost & Sullivan

Price

Accuracy & Reliability

Services

• Customers prefer to understand the cost associated with the sensors for each applications and end-user industry. Since end users look for less expensive solutions, competitive pricing of products is viewed as a major factor by the customers.

• Services and support is considered to be a major part of the customers purchasing decision. Customer responsiveness and easy access to support personnel are key aspects of services and support.

• Performance related parameters such as information accuracy, reliability and ease of use are key to successful implementation. Better performance enhances customer loyalty and is considered to be key purchasing factor in choosing a supplier.

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

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Summary

of

Findings

�Global Flow Sensors & Transmitters Market to Reach US $6.0

Billion by 2017

�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

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. ([email protected]) 1-877-GoFrost (1-877-463-7678)

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