THE WORLD MARKET FOR POSITIVE DISPLACEMENT FLOWMETERS

Researched by:

Flow Research, Inc. 27 Water Street Wakefield, MA 01880 781-245-3200 www.flowresearch.com Project team: Jesse Yoder PhD., Michael Kirsch, Belinda Burum

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 Lorena Ferrari

Published by

Ducker Research Company, Inc.

A Division of Ducker Worldwide

September 2002

TABLE OF CONTENTS

Chapter Description Page Number

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

Positive Displacement Flowmeters Will Be Around For Many
Years to Come.............................................................................. 1-1

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

Worldwide Flowmeter Studies............................................................. 1-3

The Role of Viewpoint Pluralism in Worldflowä................................... 1-5

Study Objectives.................................................................................. 1-7

Methodology....................................................................................... 1-7

Supplier Input...................................................................................... 1-8

Supplier Analysis.................................................................................. 1-8

OEM and End-User Analysis............................................................... 1-9

Forecasts........................................................................................... 1-10

Definitions.......................................................................................... 1-10

Fluid Types........................................................................................ 1-12

The PD Market is Actually Four Submarkets...................................... 1-13

Municipal Water................................................................................ 1-13

Municipal and Industrial Gas............................................................... 1-14

Oil..................................................................................................... 1-15

Industrial Liquids................................................................................ 1-15

Paradigm Case Applications............................................................... 1-16

Growth Factors for the Positive Displacement Flowmeter Market....... 1-16

Shipments of Positive Displacement Flowmeters Worldwide
by Region: Figures 1-1 and 1-2................................................... 1-16

Shipments of Positive Displacement Flowmeters Worldwide
by Application: Figure 1-3........................................................... 1-17

Market Shares for the Leading Suppliers of Positive Displacement
Flowmeters Worldwide: Figure 1-4............................................. 1-17

Emphasize the Advantages of Positive Displacement Flowmeters ........ 1-19

Offer a Variety of Models and Types of PD Meters............................ 1-20

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

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

Worldwide Flowmeter Studies............................................................. 2-2

The Role of Viewpoint Pluralism in Worldflowä................................... 2-3

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

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

Leading Suppliers vs. All Suppliers....................................................... 2-7

Building a Mystery............................................................................... 2-8

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

Two (continued)

Study Objectives.................................................................................. 2-9

Methodology....................................................................................... 2-9

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

Supplier Analysis................................................................................ 2-10

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

Forecasts........................................................................................... 2-12

Definitions.......................................................................................... 2-12

Smart vs. Conventional Flowmeters.................................................... 2-14

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

The PD Market is Actually Four Submarkets ..................................... 2-15

Municipal Water................................................................................ 2-16

Municipal and Industrial Gas............................................................... 2-17

Oil..................................................................................................... 2-18

Industrial Liquids................................................................................ 2-18

Competitive Flowmeters..................................................................... 2-18

Smart Flowmeters.............................................................................. 2-19

Communication Protocols................................................................... 2-20

Geographic Regions .......................................................................... 2-24

End-User Industries........................................................................... 2-33

Positive Displacement Flowmeter Industry Structure........................... 2-34

Team History and Experience............................................................. 2-34

Flow Research, Inc............................................................................ 2-35

Ducker Research............................................................................... 2-41

Custom Projects................................................................................ 2-41

Three........................ Positive Displacement Flowmeter Product and
Technology Analysis................................................................... 3-1

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

Paradigm Case Selection Method......................................................... 3-1

Positive Displacement........................................................................... 3-3

Paradigm Case Applications................................................................. 3-4

Accurate Metering Systems.................................................................. 3-5

American Meter................................................................................... 3-7

AW Company................................................................................... 3-11

Badger Meter.................................................................................... 3-14

Barton Instruments............................................................................. 3-16

Blancett............................................................................................. 3-18

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

Three (continued)

Bopp&Reuther.................................................................................. 3-20

Burkert.............................................................................................. 3-22

DEA Engineering................................................................................ 3-24

EMCO.............................................................................................. 3-27

Emerson Brooks................................................................................ 3-29

Emerson Daniel.................................................................................. 3-33

Flow Technology............................................................................... 3-36

FMC Measurement Solutions............................................................. 3-39

Hedland............................................................................................. 3-44

Hoffer Flow Controls......................................................................... 3-46

Instromet........................................................................................... 3-48

Kral................................................................................................... 3-50

Liquid Controls.................................................................................. 3-52

Oval Corporation............................................................................... 3-54

RMG................................................................................................. 3-56

Siemens............................................................................................. 3-58

Sika................................................................................................... 3-60

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

Four.......................... Positive Displacement Flowmeter Market Size and Forecast.. 4-1

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

Positive Displacement Flowmeters Will be around for Many Years
to Come ....................................................................................... 4-2

Growth Factors for the Positive Displacement Flowmeter Market ........ 4-4

Flowmeter Factors............................................................................... 4-4

Positive Displacement one of the Earliest Flowmeters............................ 4-4

The Large Number of Positive Displacement Flowmeter Suppliers........ 4-5

Positive Displacement Flowmeter Installed Base .................................. 4-7

High Accuracy a Major Factor ............................................................ 4-8

PD Meters Specified for Use by Approval Organizations ..................... 4-8

PD Meters Good for Measuring Low Flowrates .................................. 4-9

PD Meters Good for High Viscosity Liquids ...................................... 4-10

Evolutionary Change Occurring in PD Technology.............................. 4-10

The Advent of Foundation Fieldbus and Profibus ............................... 4-11

Macroeconomic Factors ................................................................... 4-13

Economic Downturn Hits US Economy.............................................. 4-13

Overview........................................................................................... 4-14

The Origins of the Accounting Scandals.............................................. 4-14

A Loss of Faith in the Stock Market................................................... 4-16

Other Causes of a Down Market........................................................ 4-17

Technology Stocks: A Special Case................................................... 4-17

Impact on the Process Industries........................................................ 4-19

A Return to Basics............................................................................. 4-20

Population Growth............................................................................. 4-20

Standard of Living Increases............................................................... 4-21

The Recovering Asian Economies....................................................... 4-21

New Plant and Building Construction.................................................. 4-22

Oil & Gas Production and Transportation........................................... 4-22

Factors Limiting the Growth of Positive Displacement
Flowmeters.................................................................................. 4-23

The Inherently Conservative Nature of Users in the
Process Industries........................................................................ 4-23

Competition from New-Technology Flowmeters ................................ 4-24

Competition from Traditional Technology Meters................................ 4-25

Perception of Positive Displacement Meters as Unreliable .................. 4-25

Companies Not Investing in Positive Displacement Meters ................. 4-25

Market Size and Growth Forecasts ................................................... 4-26

Shipments of Positive Displacement Flowmeters Worldwide
by Region: Figures 4-1 to 4-5...................................................... 4-27

Shipments of Positive Displacement Flowmeters Worldwide
by Application: Figures 4-6 to 4-13............................................. 4-28

Average Selling Prices of Positive Displacement Flowmeters:
Figure 4-14 to 4-17..................................................................... 4-28

Shipments of Positive Displacement Meters for Water
Applications: Figures 4-18 to 4-22.............................................. 4-28

Shipments of Positive Displacement Flowmeters for Gas
Applications: Figures 4-23 to 4-27.............................................. 4-29

Shipments of Positive Displacement Meters for Oil Applications:
Figures 4-28 to 4-32.................................................................... 4-30

Shipments of Positive Displacement Meters for Industrial
Applications: Figures 4-33 to 4-37.............................................. 4-31

Shipments of Positive Displacement Meters by Type:
Figures 4-38 to 4-44.................................................................... 4-31

Shipments of Positive Displacement Flowmeters by Fluid Type:
Figures 4-45 to 4-51.................................................................... 4-32

Five.......................... Positive Displacement Flowmeter Supplier Market Shares..... 5-1

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

Market Shares for the Leading Suppliers of PD Flowmeters
Worldwide: Figures 5-1 to 5-6...................................................... 5-1

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

Five (continued)

Market Shares for the Leading Suppliers of PD Meters for
Water Applications: Figures 5-7 to 5-8.......................................... 5-4

Market Shares for the Leading Suppliers of PD Meters for
Gas Applications: Figures 5-9 to 5-11........................................... 5-4

Market Shares for the Leading Suppliers of PD Meters for
Oil Applications: Figures 5-12 to 5-17........................................... 5-5

Market Shares for the Leading Suppliers of PD Meters for
Industrial Applications: Figures 5-18 to 5-20................................. 5-6

Market Shares for the Leading Suppliers of PD Meters
by Type: Figures 5-21 to 5-26...................................................... 5-6

Six............................ Strategies for Success................................................................. 6-1

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

Become a Broad-line Supplier ............................................................. 6-1

Offer PD Flowmeters Designed for Specific Industries and
Applications................................................................................... 6-3

Offer a Variety of Models and Types of PD Meters.............................. 6-4

Form Alliances with Other Companies.................................................. 6-5

Emphasize the Advantages of Positive Displacement Flowmeters........... 6-6

Create a Coherent and Understandable Product Naming System........... 6-6

Build a Great Website.......................................................................... 6-8

Educate Your Customers about Positive Displacement
Flowmeters.................................................................................. 6-10

Seven....................... Positive Displacement Flowmeter Supplier Profiles.................. 7-1

TABLE OF CONTENTS

(continued)

Appendix Description Page Number

Appendix A.............. Phase One and Two.................................................................... A-1

Appendix B.............. Request for Input on Worldwide Positive Displacement and
Turbine Flowmeter Studies........................................................ B-1

Appendix C.............. End-User Questionnaire............................................................. C-1

LIST OF FIGURES

Figure

Number Description Page Number

1-1 Total Shipments of Positive Displacement Flowmeters Worldwide.................... 1-22

1-2 Shipments of Positive Displacement Flowmeters by Region Worldwide............. 1-23

1-3 Shipments of Positive Displacement Flowmeters Worldwide
by Application................................................................................................. 1-22

1-4 Market Shares for the Leading Suppliers of Positive Displacement
Flowmeters Worldwide................................................................................... 1-25

2-1 New Technology and Traditional Technology Flowmeters................................. 2-42

2-2 Markets Sold into by Positive Displacement Flowmeter Suppliers..................... 2-43

2-3 Types of Positive Displacement Flowmeters Offered by Suppliers..................... 2-45

2-4 Communication Protocols Offered for Smart Flowmeters by Supplier............... 2-48

2-5 Flowmeters Approved by the Fieldbus Foundation........................................... 2-49

3-1 American Meter Company – RPM..................................................................... 3-7

3-2 American Meter Company – AC-250................................................................ 3-7

3-3 AW Company – JV-KL Series, Spur Gear...................................................... 3-11

3-4 AW Company – SRZ Series, Helical Gear....................................................... 3-11

3-5 Badge Meter – Recordall Disc Series............................................................... 3-14

3-6 Badge Meter – RCDL Disc Meters.................................................................. 3-14

3-7 Barton Instruments – F2500............................................................................. 3-16

3-8 Barton Instruments – F500............................................................................... 3-16

3-9 Blancett – Series 500....................................................................................... 3-18

3-10 Bopp & Reuther – Oval Wheel OK................................................................. 3-20

3-11 Bopp & Reuther – Oval Wheel OI with UST................................................... 3-20

3-12 Emerson Brooks – BM Series Oval Gear......................................................... 3-28

3-13 Emerson Brooks – Series 9400 Oval Gear....................................................... 3-28

3-14 Emerson Daniel – Birotor Plus.......................................................................... 3-31

3-15 Emerson Daniel – BiRotor................................................................................ 3-31

3-16 Flow Technology – DC-I Series....................................................................... 3-33

3-17 Flow Technology – Tricklemeter Series............................................................ 3-33

3-18 Hedland – The HJV-KL Series........................................................................ 3-40

3-19 Instromet – The IRM-3.................................................................................... 3-44

3-20 Instromet – The IRM-1.................................................................................... 3-44

3-21 Kral – The OMH............................................................................................. 3-46

3-22 Kral – The OMG............................................................................................. 3-46

3-23 Liquid Controls – M-40................................................................................... 3-48

LIST OF FIGURES

(continued)

Figure

Number Description Page Number

3-24 Liquid Controls – PD Meter............................................................................. 3-48

3-25 Oval Corporation – Flowpet-NX..................................................................... 3-50

3-26 Oval Corporation – Ultra Oval......................................................................... 3-50

3-27 RMG – RMG 132 A....................................................................................... 3-52

3-28 RMG – RMG 130........................................................................................... 3-52

3-29 Sika – VZ AL.................................................................................................. 3-56

3-30 Sika – VZ K.................................................................................................... 3-56

3-31 Venture Measurement – Nutating Disc............................................................. 3-58

3-32 Venture Measurement – Oscillating Piston........................................................ 3-58

4-1 Total Shipments of Positive Displacement Flowmeters Worldwide
in (Millions of Dollars)...................................................................................... 4-33

4-2 Total Shipments of Positive Displacement Flowmeters Worldwide
in (Thousands of Units).................................................................................... 4-34

4-3 Shipments of Positive Displacement Flowmeters by Region............................... 4-35

4-4 Shipments of Positive Displacement Flowmeters by Region
in (Percent of Dollars)...................................................................................... 4-36

4-5 Shipments of Positive Displacement Flowmeters by Region............................... 4-37

4-6 Shipments of Positive Displacement Flowmeters Worldwide by
Application in (Millions of Dollars) and (Thousand of Units).............................. 4-38

4-7 Shipments of Positive Displacement Flowmeters Worldwide by
Application in (Percent of Dollars).................................................................... 4-39

4-8 Shipments of Positive Displacement Flowmeters Worldwide by Type................ 4-40

4-9 Shipments of Positive Displacement Flowmeters by Application
in North America............................................................................................. 4-41

4-10 Shipments of Positive Displacement Flowmeters by Application
in Europe......................................................................................................... 4-42

4-11 Shipments of Positive Displacement Flowmeters by Application in Japan........... 4-43

4-12 Shipments of Positive Displacement Flowmeters by Application
in Asia w/o Japan............................................................................................. 4-44

4-13 Shipments of Positive Displacement Flowmeters by Application in
Rest of World.................................................................................................. 4-45

4-14 Average Selling Price of Positive Displacement Flowmeters by Region............. 4-46

4-15 Average Selling Price of Positive Displacement Flowmeters by
Fluid Type in (North America) and (Worldwide).............................................. 4-47

LIST OF FIGURES

(continued)

Figure

Number