THE MARKET FOR NEW TECHNOLOGY

FLOWMETERS WORLDWIDE

Book One

Researched by:

Flow Research 27 Water Street Wakefield, MA 01880 781-245-3200 www.flowresearch.com Project team: Jesse Yoder PhD., Michael Kirsch, Robert George, Jeff Soohoo

Ducker Research Company, Inc. 6905 Telegraph Road Suite 300 Bloomfield Hills, MI 48301 248-644-0086 www.ducker.com Project team: Nick Limb, Scott Shober Josiah Waxman, Lorena Ferrari

Published by

Ducker Research Company, Inc.

A Division of Ducker Worldwide

September, 2001

THE MARKET FOR NEW TECHNOLOGY

FLOWMETERS WORLDWIDE

Book Two

Researched by:

Flow Research 27 Water Street Wakefield, MA 01880 781-245-3200 www.flowresearch.com Project team: Jesse Yoder PhD., Michael Kirsch, Robert George, Jeff Soohoo

Ducker Research Company, Inc. 6905 Telegraph Road Suite 300 Bloomfield Hills, MI 48301 248-644-0086 www.ducker.com Project team: Nick Limb, Scott Shober Josiah Waxman, Lorena Ferrari

Published by

Ducker Research Company, Inc.

A Division of Ducker Worldwide

September, 2001

TABLE OF CONTENTS

Chapter Description Page Number

One..................... Executive Summary........................................................................... 1-1

For Multiple Reasons, More Users Select New Technology
Flowmeters.......................................................................................... 1-1

Overview............................................................................................. 1-3

Worldflowä........................................................................................ 1-4

The Role of Viewpoint Pluralism in Worldflowä................................... 1-6

The Importance of Cross-Technology Research.................................... 1-7

New Studies vs. Updates..................................................................... 1-9

Leading Suppliers vs. All Suppliers..................................................... 1-10

Building a Mystery............................................................................. 1-10

Study Objectives................................................................................ 1-11

Methodology..................................................................................... 1-12

Supplier Input.................................................................................... 1-12

Supplier Analysis................................................................................ 1-13

OEM and End-User Analysis............................................................. 1-14

Forecasts........................................................................................... 1-15

Definitions.......................................................................................... 1-15

New Technology Flowmeters............................................................. 1-15

DP Transmitters................................................................................. 1-16

Multivariable, Smart, and Conventional............................................... 1-16

Fluid Types........................................................................................ 1-17

New Technology Flowmeters............................................................. 1-18

Paradigm Case Selection Method....................................................... 1-19

Suppliers of DP Flowmeters Battle to Hold onto Market Share........... 1-21

Shipments of DP Flowmeters Worldwide by Region:
Figures 1-2 and 1-3............................................................................ 1.22

Growth Factors for the New Technology Flowmeter Market.............. 1-22

High Accuracy continues to be a Factor in the Shift to New
Technologies...................................................................................... 1-23

Users Looking for Reliability............................................................... 1-25

Shipments of New Technology Flowmeters Worldwide by Region
Figures 1-4 to 1-5.............................................................................. 1-27

Shipments of New Technology Flowmeters Worldwide by
Technology: Figures 1-6 to 1-7......................................................... 1-27

Market Shares for New Technology Flowmeters by
Geographic Region Figure 1-8............................................................ 1-29

Strategies for Success........................................................................ 1-32

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

1 (continued)

Become a Broad-line Supplier............................................................ 1-32

Emphasize the Accuracy and Reliability of New Technology
Flowmeters........................................................................................ 1-34

Tap Into the Fast-Growing Market for Gas Flow Measurement.......... 1-35

Educate Your Customers about New Technology Flowmeters............ 1-36

Two..................... Introduction and Methodology......................................................... 2-1

Overview............................................................................................. 2-1

Worldflowä........................................................................................ 2-2

The Role of Viewpoint Pluralism in Worldflowä................................... 2-4

The Importance of Cross-Technology Research.................................... 2-5

New Studies vs. Updates..................................................................... 2-7

Leading Suppliers vs. All Suppliers....................................................... 2-8

Building a Mystery............................................................................... 2-9

Study Objectives................................................................................ 2-10

Methodology..................................................................................... 2-10

Supplier Input.................................................................................... 2-10

Supplier Analysis................................................................................ 2-11

OEM and End-User Analysis............................................................. 2-12

Forecasts........................................................................................... 2-13

Definitions.......................................................................................... 2-13

New Technology Flowmeters............................................................. 2-13

DP Transmitters................................................................................. 2-14

Multivariable, Smart, and Conventional............................................... 2-14

Fluid Types........................................................................................ 2-15

Smart Flowmeters.............................................................................. 2-16

Communication Protocols................................................................... 2-17

Geographic Regions........................................................................... 2-21

End-User Industries........................................................................... 2-30

New Technology Flowmeter Industry Structure.................................. 2-30

Team History and Experience............................................................. 2-30

Flow Research................................................................................... 2-31

Ducker Research............................................................................... 2-36

Custom Projects................................................................................ 2-36

Acknowledgement............................................................................. 2-37

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

Three.................. New Technology Product and Technology Analysis........................ 3-1

Overview............................................................................................. 3-1

New Technology Flowmeters............................................................... 3-2

Coriolis Flowmeters............................................................................. 3-2

Paradigm Case Application.................................................................. 3-4

Magnetic Flowmeters........................................................................... 3-5

Paradigm Case Application.................................................................. 3-5

Ultrasonic Flowmeters.......................................................................... 3-6

Paradigm Case Application.................................................................. 3-7

Vortex Flowmeters.............................................................................. 3-7

Paradigm Case Application.................................................................. 3-8

Paradigm Case Selection Method....................................................... 3-12

New Technology Flowmeter Product Analysis.................................... 3-15

ABB.................................................................................................. 3-16

Badger Meter.................................................................................... 3-18

Bopp & Reuther................................................................................ 3-19

Brooks Instruments............................................................................ 3-21

Controlotron...................................................................................... 3-23

Danfoss............................................................................................. 3-25

Daniel................................................................................................ 3-28

Endress & Hauser.............................................................................. 3-30

FMC Measurement Solutions............................................................. 3-34

Foxboro............................................................................................ 3-37

Fuji Electric........................................................................................ 3-40

Istromet Ultrasonic Flowmeters.......................................................... 3-41

Krohne.............................................................................................. 3-43

Micro Motion.................................................................................... 3-46

Oval.................................................................................................. 3-47

Panametrics....................................................................................... 3-49

Rosemount......................................................................................... 3-51

Siemens............................................................................................. 3-53

Tokimec............................................................................................ 3-56

Tokyo Keiso...................................................................................... 3-58

Toshiba.............................................................................................. 3-60

Venture Measurement........................................................................ 3-62

Yamatake.......................................................................................... 3-64

Yokogawa......................................................................................... 3-66

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

Four.................... Differential Pressure Flowmeter Market Size and Forecast.......... 4-1

Overview............................................................................................. 4-1

Differential Pressure Flowmeters........................................................... 4-2

Suppliers of DP Flowmeters Battle to Hold Onto Market Share............ 4-3

Growth Factors for the DP Flowmeter Market..................................... 4-4

Many Users are Reluctant to Switch Technologies................................ 4-4

Installed Base of DP Flowmeters.......................................................... 4-4

New DP Technologies are Giving Users Reasons to Stick
with DP Flow....................................................................................... 4-5

Factors Limiting the Growth of Differential Pressure Flowmeters........... 4-6

Users are Moving Towards New Technology Meters........................... 4-6

Users are Looking for Low Maintenance.............................................. 4-7

Users are Looking for Accuracy and Reliability..................................... 4-7

Applications for Multivariable DP Flow................................................ 4-8

Market Size and Growth Forecasts...................................................... 4-9

Shipments of DP Flowmeters Worldwide by Region:
Figures 4-1 to 4-5.............................................................................. 4-10

Shipments of DP Flowmeters Worldwide by Type:
Figures 4-6 to 4-19............................................................................ 4-10

Average Selling Prices of DP Flowmeters: Figure 4-20 to 4-24........... 4-11

Shipments of DP Flowmeters by Fluid Type Worldwide
and by Region: Figures 4-25 to 4-32.................................................. 4-11

Shipments of Multivariable DP Flowmeters Worldwide
by Region by Type: Figures 4-33 to 4-37........................................... 4-12

Shipments of Single-Variable Smart DP Flowmeters Worldwide
and by Region by Type: Figures 4-38 to 4-42..................................... 4-12

Shipments of Conventional DP Flowmeters Worldwide and by
Region by Type: Figures 4-43 to 4-47................................................ 4-12

Shipments of Multivariable & Smart DP Flowmeters by
Communication Protocol Worldwide and by Region:
Figures 4-48 to 4-55.......................................................................... 4-13

Shipments of DP Flowmeters by Industry Worldwide and
by Region: Figures 4-56 to 4-62......................................................... 4-13

Shipments of DP Flowmeters Worldwide by Distribution Channels:
Worldwide and by Region: Figures 4-63 to 4-66............................... 4-14

Shipments of Magnetic Flowmeters Worldwide by Communication
Protocol: Figures 4-60 to 4-66........................................................... 4-14

Market Size and Growth Forecasts.................................................... 4-15

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

Five.................... New Technology Flowmeter Market Size and Forecast................. 5-1

Overview............................................................................................. 5-1

New Technology Flowmeters............................................................... 5-3

For Multiple Reasons, More Users are Selecting New Technology
Flowmeters.......................................................................................... 5-4

Growth Factors for the New Technology Flowmeter Market................ 5-6

High Accuracy Continues to be a Factor in the Shift to New
Technologies........................................................................................ 5-7

Users Looking for Reliability................................................................. 5-9

Nonintrusivesness and Lack of Pressure Drop are Major Factors........ 5-11

New Technology Flowmeters Turned Their Negatives into
Positives............................................................................................ 5-12

Custody Transfer of Natural Gas is a Boom Market for New
Technology Meters............................................................................ 5-16

Technology Improvements in New Technology Flowmeters................ 5-18

Growth in Multivariable Flowmeters................................................... 5-21

More New Technology Suppliers Now in the Market......................... 5-23

Increased Capability to Measure Gas and Steam Flow........................ 5-27

The 1990’s: The Decade of Smart..................................................... 5-28

The Advent of Foundation Fieldbus and Profibus................................ 5-30

Increased Use of HART..................................................................... 5-34

Danfoss’ USM II Module.................................................................. 5-35

Macroeconomic Factors.................................................................... 5-36

Economic Growth of Countries........................................................... 5-36

Population Growth............................................................................. 5-40

Standard of Living Increases............................................................... 5-40

New Plant Construction..................................................................... 5-41

Retrofits and Renovations................................................................... 5-42

The Recovering Asian Economies....................................................... 5-42

Growth in Environmental Regulations.................................................. 5-43

Factors Limiting the Growth of New Technology Flowmeters.............. 5-44

The Inherently Conservative Nature of Users in the Process
Industries........................................................................................... 5-44

Lack of Familiarity with New Technology Flowmeters........................ 5-44

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

5 (continued)

The Cost of New Technology Flowmeters.......................................... 5-45

Regional and Geographic Preferences................................................. 5-48

Market Size and Growth Forecasts.................................................... 5-49

Shipments of New Technology Flowmeters Worldwide by Region:
Figures 5-1 to 5-6.............................................................................. 5-50

Shipments of New Technology Flowmeters Worldwide by
Technology: Figures 5-7 to 5-15........................................................ 5-51

Average Selling Prices of New Technology Flowmeters:
Figures 5-16 to 5-20.......................................................................... 5-52

Shipments of New Technology Flowmeters by Fluid Type
Worldwide by Region: Figures 5-21 to 5-28...................................... 5-53

Shipments of New Technology Flowmeters Worldwide and by
Region by Type: Figures 5-29 to 5-36................................................ 5-50

Shipments of Multivariable & Smart New Technology Flowmeters
by Communication Protocol Worldwide and by Region:
Figures 5-37 to 5-44.......................................................................... 5-55

Shipments of New Technology Flowmeters by Industry
Worldwide and by Region: Figures 5-45 to 5-51............................... 5-56

Shipments of New Technology Flowmeters Worldwide by
Distribution Channels Worldwide and by Region:
Figures 5-52 to 5-55.......................................................................... 5-57

Shipments of New Technology Flowmeters by Customer Type
Worldwide and by Region: Figures 5-56 to 5-59............................... 5-58

Shipments of New Technology & DP Flowmeters Worldwide
and by Region: Figures 5-60 to 5-65................................................. 5-58

Shipments of New Technology & DP Flowmeters by Technology
Worldwide and by Region: Figures 5-66 to 5-74............................... 5-59

Average Selling Price of New Technology & DP Flowmeters by
Region: Figures 5-75 to 5-79............................................................ 5-59

Shipments of New Technology & DP Flowmeters by Fluid Type
Worldwide and by Region: Figures 5-80 to 5-87............................... 5-59

New Technology & DP Flowmeters, Including Multivariable DP
Meters with DP Flowmeters: Figures 5-88 to 5-94............................ 5-61

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

Six...................... New Technology Flowmeter Supplier Market Shares.................... 6-1

Overview............................................................................................. 6-1

Market Shares for New Technology Flowmeters by Geographic
Region: Figures 6-1 to 6-6.................................................................. 6-1

Micro Motion...................................................................................... 6-4

Endress & Hauser................................................................................ 6-5

Krohne................................................................................................ 6-7

Yokogawa........................................................................................... 6-9

ABB.................................................................................................. 6-11

Rosemount......................................................................................... 6-13

Danfoss............................................................................................. 6-15

Foxboro............................................................................................ 6-16

Panametrics....................................................................................... 6-18

Market Shares for New Technology Flowmeters by Fluid Type
Worldwide: Figure 6-7 to 6-9........................................................... 6-19

Market Shares for Multivariable and Smart New Technology
Flowmeters Worldwide: Figure 6-10 to 6-12..................................... 6-21

Market Shares New Technology Flowmeters by Industry:
Figure 6-13 to 6-20........................................................................... 6-23

Seven................. Strategies for Success....................................................................... 7-1

Overview............................................................................................. 7-1

Become a Broad-Line Supplier............................................................ 7-1

Emphasize the Accuracy and Reliability of New Technology
Flowmeters.......................................................................................... 7-3

Tap into the Fast-Growing Market for Gas Flow Measurement............. 7-4

Pursue the Market for Steam Applications............................................ 7-5

Offer New Technology Flowmeters Designed for Specific
Industries and Applications................................................................... 7-6

Offer a Variety of Models, Including Wafer, Flanged, and
Insertion............................................................................................... 7-7

Form Alliances with Other Companies.................................................. 7-8

Emphasize the Advantages of New Technologies Flowmeters............... 7-9

Create a Coherent and Understandable Product Naming System......... 7-11

Consider Multivariable Flowmeters..................................................... 7-13

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

7 (continued)

Work with Industry Associations to Obtain Approvals for
New Technology Flowmeters............................................................. 7-14

Build a Great Website........................................................................ 7-15

Educate Your Customers about New Technology Flowmeters............ 7-17

Invest in Smart Flowmeters, and in Communication Protocols............. 7-18

Eight................... New Technology Flowmeter Company Profiles............................... 8-1

ABB Automation................................................................................. 8-2

Badger Meter, Inc................................................................................ 8-6

Bopp & Reuther Heinrichs Messtechnik............................................... 8-8

Bristol Babcock................................................................................. 8-10

Brooks Instrument Division................................................................. 8-14

Controlotron Corporation................................................................... 8-16

Danfoss A/S Flow Division................................................................. 8-19

Daniel Industries................................................................................. 8-21

Endress & Hauser.............................................................................. 8-23

FMC Measurement Solutions............................................................. 8-27

Foxboro............................................................................................ 8-30

Fuji Electric Company, Ltd................................................................. 8-33

Honeywell Industrial Automation & Control (IAC).............................. 8-36

Instromet International NV................................................................. 8-41

Krohne Messtechnik GmbH & Company KG.................................... 8-43

Micro Motion.................................................................................... 8-47

Oval Corporation............................................................................... 8-49

Panametrics....................................................................................... 8-52

Rosemount, Inc.................................................................................. 8-56

Siemens AG....................................................................................... 8-64

Tokimec, Inc...................................................................................... 8-69

Tokyo Keiso Company, Ltd............................................................... 8-71

Toshiba Corporation.......................................................................... 8-73

Venture Measurement LLC................................................................ 8-77

Yamatake Corporation....................................................................... 8-80

Yokogawa Electric Company............................................................. 8-83

TABLE OF CONTENTS

(continued)

Appendix Description Page Number

Appendix A........ Worldwide Flowmeter Study: Phase One and Phase Two.............. A-1

Appendix B........ Input Questionnaire.......................................................................... B-1

Appendix C Enduser Survey............................................................................... C-1

Appendix D Directory of Flowmeter Suppliers.................................................. D-1