THE MARKET FOR TURBINE

FLOWMETERS WORLDWIDE

Researched by:

Flow Research 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

Turbine Flowmeters Remain a Viable Choice for Steady,
Medium to High-Speed Flows.............................................................. 1-1

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

Worldwide Flowmeter Studies ä......................................................... 1-5

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

Study Objectives.................................................................................. 1-8

Methodology....................................................................................... 1-9

Supplier Input...................................................................................... 1-9

Supplier Analysis.................................................................................. 1-9

OEM and End-User Analysis............................................................. 1-11

Forecasts........................................................................................... 1-11

Definitions.......................................................................................... 1-12

Fluid Types........................................................................................ 1-14

Paradigm Case for Turbine Flowmeters.............................................. 1-17

Growth Factors for the Turbine Flowmeter Market............................. 1-17

Shipments of Turbine Flowmeters Worldwide by Region..................... 1-17

Shipments of Turbine Flowmeters Worldwide by Application.............. 1-18

Market Shares for the Leading Suppliers of Turbine
Flowmeters Worldwide...................................................................... 1-18

Emphasize the Advantages of Turbine Flowmeters.............................. 1-21

Invest in the Water or Gas Utility Measurement Market ..................... 1-22

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

Two........................... Introduction and Methology....................................................... 2-1

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

Worldwide Flowmeter Studies............................................................. 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............................................................................... 2-8

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

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

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

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

Smart Flowmeters.............................................................................. 2-18

Communication Protocols................................................................... 2-18

Smart Meters and the Turbine Flowmeter Market .............................. 2-23

The Turbine Market is Actually Four Submarkets .............................. 2-23

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

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

Turbine Flowmeter Industry Structure................................................. 2-33

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

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

Ducker Research............................................................................... 2-40

Custom Projects................................................................................ 2-40

Three........................ Turbine Flowmeter Product and Technology Analysis.............. 3-1

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

Paradigm Case Selection Method ........................................................ 3-2

Paradigm Case for Turbine Flowmeters ............................................... 3-3

History of Turbine Flowmeters ............................................................ 3-3

Turbine Flowmeters ............................................................................ 3-5

Turbine Flowmeter Products Section.................................................... 3-8

Accurate Metering Systems................................................................ 3-10

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

3 (continued)

American Meter Company................................................................. 3-12

Badger Meter.................................................................................... 3-15

Barton Instruments............................................................................. 3-17

Blancett............................................................................................. 3-21

Bopp & Reuther................................................................................ 3-24

Bürkert.............................................................................................. 3-26

Dwyer Instruments............................................................................. 3-29

EMCO.............................................................................................. 3-31

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

Erdco................................................................................................ 3-37

Exact Flow........................................................................................ 3-39

Faure Herman.................................................................................... 3-41

Flowmetrics....................................................................................... 3-43

FMC Invalco..................................................................................... 3-45

GF Signet.......................................................................................... 3-49

Global Water..................................................................................... 3-52

Halliburton......................................................................................... 3-54

Hedland............................................................................................. 3-56

Hoffer Flow Controls......................................................................... 3-58

Instromet........................................................................................... 3-63

Kobold.............................................................................................. 3-65

Liquid Controls.................................................................................. 3-67

McCrometer...................................................................................... 3-70

McMillan Company........................................................................... 3-72

Nixon Flowmeters.............................................................................. 3-74

Oval Corporation............................................................................... 3-77

RMG................................................................................................. 3-79

Sika................................................................................................... 3-81

Sparling Instruments........................................................................... 3-84

Thermo Measurement........................................................................ 3-86

Venture Measurement........................................................................ 3-88

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

Four.......................... Turbine Flowmeter Market Size and Forecast.......................... 4-1

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

Turbine Flowmeters Remain a Viable Choice for Steady,
Medium to High-Speed Flows.............................................................. 4-2

Growth Factors for the Turbine Flowmeter Market............................... 4-5

Flowmeter Factors............................................................................... 4-5

Turbine Flowmeters are Well-Established ............................................ 4-5

There are Many Turbine Flowmeter Suppliers ...................................... 4-6

Installed Base of Turbine Flowmeters .................................................. 4-7

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

Approval Organizations Specify Turbine Meters .................................. 4-9

The Advent of Foundation Fieldbus and Profibus ................................. 4-9

Macroeconomic Factors ................................................................... 4-11

The Stock Market Disconnects from the US Economy ....................... 4-11

Overview........................................................................................... 4-12

The Origins of the Accounting Scandals.............................................. 4-12

A Disconnect Between the Economy and the Stock Market ............... 4-14

Other Causes of a Down Market........................................................ 4-15

Technology Stocks: A Special Case................................................... 4-16

Impact on the Process Industries........................................................ 4-17

A Return to Basics............................................................................. 4-18

Population Growth............................................................................. 4-18

Standard of Living Increases............................................................... 4-19

The Recovering Asian Economies....................................................... 4-20

New Plant and Building Construction.................................................. 4-20

Oil & Gas Production and Transportation........................................... 4-20

Factors Limiting the Growth of Turbine Flowmeters............................ 4-21

The Inherently Conservative Nature of Users in the
Process Industries.............................................................................. 4-22

TABLE OF CONTENTS

(continued)

Chapter Description Page Number

4 (continued)

Competition from New-Technology Flowmeters ................................ 4-22

Competition from Traditional Technology Meters................................ 4-23

Perception of Turbine Meters as Unreliable ........................................ 4-24

Companies Not Investing in Turbine Meters ....................................... 4-24

Market Size and Growth Forecasts ................................................... 4-25

Shipments of Turbine Flowmeters Worldwide by Region:
Figures 4-1 to 4-5.............................................................................. 4-26

Shipments of Turbine Flowmeters Worldwide by Application:
Figures 4-6 to 4-13............................................................................ 4-26

Average Selling Prices of Turbine Flowmeters:
Figure 4-14 to 4-17........................................................................... 4-26

Shipments of Turbine Meters for Water Applications:
Figures 4-18 to 4-22.......................................................................... 4-27

Shipments of Turbine Flowmeters for Gas Applications:
Figures 4-23 to 4-27.......................................................................... 4-27

Shipments of Turbine Meters for Oil Applications:
Figures 4-28 to 4-32.......................................................................... 4-28

Shipments of Turbine Meters for Industrial Applications:
Figures 4-33 to 4-37.......................................................................... 4-28

Shipments of Turbine Meters by Type:
Figures 4-38 to 4-50.......................................................................... 4-29

Shipments of Turbine Flowmeters by Fluid Type:
Figures 4-51 to 4-57.......................................................................... 4-29

Shipments of Turbine Flowmeters by Mounting Type:
Figures 4-58 to 4-64.......................................................................... 4-29

Five.......................... Turbine Flowmeter Supplier Market Shares............................. 5-1

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

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

Market Shares for the Leading Suppliers of Turbine Meters for
Water Applications: Figures 5-6 to 5-8................................................. 5-6

Market Shares for the Leading Suppliers of Turbine Meters for Gas Applications: Figures 5-9 to 5-11........................................................................................................ 5-7

Market Shares for the Leading Suppliers of Turbine Meters for Oil Applications: Figures 5-12 to 5-15........................................................................................................ 5-7

Market Shares for the Leading Suppliers of Turbine Meters
for Industrial Applications: Figures 5-16 to 5-18................................... 5-8
TABLE OF CONTENTS

(continued)

Chapter Description Page Number

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

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

Emphasize the Advantages of Turbine Flowmeters ............................... 6-1

Invest in the Water or Gas Utility Measurement Market ....................... 6-2

Look into Offering Smart Turbine Meters ............................................ 6-3

Become a Broad-line Supplier of Flowmeters and
Instrumentation Products...................................................................... 6-4

Offer Turbine Flowmeters Designed for Specific Industries
and Applications.................................................................................. 6-6

Offer a Variety of Models and Types of Turbine Meters....................... 6-7

Form Alliances with Other Companies ................................................. 6-7

Create a Coherent and Understandable Product Naming System .......... 6-8

Build a Useful and Informative Website .............................................. 6-11

Find Ways to Educate Your Customers ............................................. 6-12

Seven....................... Turbine Flowmeter Supplier Profiles.......................................... 7-1

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

LIST OF FIGURES

Figure

Number Description Page Number

1-1 Total Shipments of Turbine Flowmeters Worldwide:......................................... 1-24

1-2 Shipments of Turbine Flowmeters by Region.................................................... 1-25

1-3 Shipments of Turbine Flowmeters Worldwide by Application:........................... 1-26

1-4 Market Shares for the Leading Suppliers of Turbine Flowmeters
Worldwide...................................................................................................... 1-27

2-1 New Technology and Traditional Technology Flowmeters................................. 2-41

2-2 Markets Sold into by Turbine Flowmeter Suppliers........................................... 2-42

2-3 Communication Protocols Offered for Smart Flowmeters by Supplier............... 2-43

2-4 Flowmeters Approved by the Fieldbus Foundation........................................... 2-44

3-1 Accurate Metering Systems Flowmeter............................................................ 3-10

3-2 American Meter Flowmeter............................................................................. 3-12

3-3 Badger Meter Turbine Flowmeters................................................................... 3-15

3-4 Barton Instruments Turbine Flowmeters............................................................ 3-17

3-5 Blancett Turbine Flowmeters............................................................................ 3-21

3-6 Bopp & Reuther Turbine Flowmeters............................................................... 3-24

3-7 Dwyer Turbine Flowmeters.............................................................................. 3-29

3-8 Emerson Daniel Turbine Flowmeters................................................................ 3-34

3-9 ERDCO Turbo-Floä Turbine Flowmeters....................................................... 3-37

3-10 Exact Flow Turbine Flowmeters....................................................................... 3-39

3-11 Faure Herman Turbine Flowmeters.................................................................. 3-41

3-12 Flowmetrics Turbine Flowmeters...................................................................... 3-43

3-13 FMC Invalco Turbine Flowmeters.................................................................... 3-46

3-14 GF Signet Turbine Flowmeters......................................................................... 3-49

3-15 Halliburton Turbine Flowmeters........................................................................ 3-54

3-16 Hedland Turbine Flowmeters........................................................................... 3-56

3-17 Hoffer Turbine Flowmeters.............................................................................. 3-58

3-18 Instromet Turbine Flowmeters.......................................................................... 3-63

3-19 Liquid Controls Turbine Flowmeters................................................................. 3-68

3-20 McCrometer Turbine Flowmeters.................................................................... 3-70

3-21 Nixon Flowmeters Turbine Flowmeters............................................................ 3-75

3-22 Oval Corporation Turbine Flowmeters............................................................. 3-77

3-23 RMG Turbine Flowmeters............................................................................... 3-79

3-24 Sika Turbine Flowmeters................................................................................. 3-82

LIST OF FIGURES

(continued)

Figure

Number Description Page Number

3-25 Sparling Instruments Turbine Flowmeters.......................................................... 3-84

3-26 Thermo Measurement Turbine Flowmeters....................................................... 3-86

3-27 Venture Measurement Turbine Flowmeters....................................................... 3-27

4-1 Total Shipments of Turbine Flowmeters Worldwide.......................................... 4-31

4-2 Total Shipments of Turbine Flowmeters Worldwide.......................................... 4-32

4-3 Shipments of Turbine Flowmeters by Region.................................................... 4-33

4-4 Shipments of Turbine Flowmeters by Region.................................................... 4-34

4-5 Shipments of Turbine Flowmeters by Region.................................................... 4-35

4-6 Shipments of Turbine Flowmeters Worldwide by Application............................ 4-36

4-7 Shipments of Turbine Flowmeters Worldwide by Application............................ 4-37

4-8 Shipments of Turbine Flowmeters Worldwide by Type..................................... 4-38

4-9 Shipments of Turbine Flowmeters by Application in North America.................. 4-39

4-1