A new market study from IMS Research has revealed that revenue for the global gas meter market is set to cross the $2 billion mark in 2013. Most developing countries are focussing on introducing new advanced metering initiatives and infrastructure, which is expected to propel the market revenue to surpass $2.7 billion by 2016.
In a statement, Jacob Pereira, an analyst at IMS Research, said that, “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.”
Under the new directives for the installation of gas in homes and businesses by EU member countries, the growth in EMEA (Europe, the Middle East, and Africa) region is an expected 12 percent year-over-year until 2016.
Pereira said that, “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.”
Significant growth is expected in a number of Asian countries, based on the fact that developing markets are quickly expanding their gas infrastructure. Additionally, an increasing number of developed markets are now moving toward adopting advanced solutions. All of these new trends will spell good news for the gas meter market, which up until now was limited to replacement of old meters and or the installation of meters for new constructions.
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Edited by Brooke Neuman