The limited applications for traditional mechanical flow meters and the performance advantages of electronic flow meters will be fueling the growth of the European flow sensors and transmitters market, according to a new Frost & Sullivan report.
The research shows that the European flow sensors and transmitters markets earned revenues of $1,334.9 million in 2005 and is estimated to reach $2,113.7 million in 2012.
“The European flow sensors and transmitters market will be primarily driven by the migration of end users towards electronic, non-contact flow measurement systems,” notes Frost & Sullivan Research Analyst Gomathinayagam S. “These flow meters offer advantages over mechanical flow meters in terms of higher accuracy and reliability and also do not obstruct the flow in pipelines.”
As the preference for electronic flow sensors and transmitters grows, they will begin to replace existing mechanical systems.
Although the market is expanding, increased competition among electronic flow meter companies
will lead to lower profitability, as these companies lower their prices in order to boost volume sales. Many smaller companies, though, could have their profits hurt by this strategy and may even go out of business, notes the report.
Currently there are over 100 competitors that offer relatively similar products at similar price and performance points, making the the European flow sensors and transmitters markets highly competitive.
The Frost & Sullivan report suggests that companies can improve profits my understanding their customers and end-user markets through monitoring customer feedback and developing product solutions to meet market needs.
“Market participants should focus on developing truly innovative, customized products and solutions that offer better value to customers,” advises Gomathinayagam. “New product development programs should be designed around feedback from customers and should be market driven.”