Revenues for the global gas meter market are to surpass $2 billion annually in 2013, according to a new market study from IMS Research, part of IHS Inc. (NYSE: IHS).
New advanced metering initiatives and construction in developing countries are forecast to grow market revenues to over $2.7 billion by 2016.
The EMEA (Europe, the Middle East and Africa) region is expected to see especially strong growth, at approximately 12 percent year-over-year until 2016 at least, due in large part to EU member countries issuing directives for communicating gas meters to be installed in homes and businesses in the coming years. Asian countries will also see significant gains as developing markets continue to expand their gas infrastructure and more developed markets move towards advanced solutions.
According to Jacob Pereira, an analyst at IMS Research:
“In a market as conservative as the gas meter market this kind of growth is nearly unheard of. Utilities are understandably reluctant to replace meters that have a typical lifespan of 30-40 years for newer technologies. As regulators around the world require increased functionality from gas meters, some utilities are being forced to replace meters early, resulting in larger shipment numbers than had been observed in the past. Until relatively recently, advanced gas meter solutions were almost exclusively limited to the North American market, but we’ve observed a rapid change from the status quo to advanced meter adoption in many areas of the world.”
This is good news for those who work in the gas meter market, which typically sees very little activity outside of the replacement of worn-out meters and the installation of meters on new construction. Pereira adds:
“The adoption of higher-value metering systems is exciting news for the once conservative gas meter industry. Historically, profit margins have been razor thin as suppliers only provided the robust and proven diaphragm technology. Labor cost savings along with various country mandates for improved utility infrastructure will continue to grow the market for the foreseeable future.”
The World Market for Gas Meters – 2012 is a continuing part of IMS Research’s comprehensive smart grid portfolio, which includes dedicated studies on electricity, water and heat metering, which the firm has been studying for more than 15 years. The report includes tables on gas meter topology, measurement type, application, country-level installed base analysis and market shares.