New technology adoption, changing regulatory environment drive record global heat meter market

Global billing heat meter market revenues surged in 2011 to roughly $730 million, a growth of almost 15% over 2010 levels, according to a recent study.

06/21/2012


A recent study released by IMS Research, recently acquired by IHS Inc., shows that global billing heat meter market revenues surged in 2011 to roughly $730 million, a growth of almost 15% over 2010 levels. Key market drivers are new technology adoption and a continually maturing regulatory environment which promotes end-use measurement for the accurate billing of energy.

While ultrasonic and electromagnetic (static) metering technology has been seen for some time in the market for larger heat meters, adoption is now occurring for smaller heat allocation meters. Heat service companies in Germany, Europe’s largest market, started to install ultrasonic metering into billing and allocation metering systems in 2010 and 2011. This is a notable occurrence given this region’s history of using cheaper and less accurate mechanical meters, which must be removed/recalibrated every five years due to existent regulation.

The World Market for Static Heat Meters by Major Region. Source: IMS Research

Research director Michael Markides commented, “With such strong regulation in place in Germany, service companies could never justify paying for more expensive metering systems. Cheaper mechanical types were installed every five years, thus eliminating any incentive to pay more for increased meter lifetime, durability or accuracy. Having a service company invest in more expensive static metering technology shows labor costs, energy costs and added accuracy benefits reaching a justifiable convergence point for static meter investment.”

While further adoption of static technology is driving revenue growth, new legislation and other government initiatives worldwide have been significantly growing shipments for heat meters (as well as heat cost allocators). Recent market development has mainly centered on China, where meter shipments have grown by more than 100% per year from 2007 onwards. In 2011, shipments plateaued to just over 2 million units. New construction and the government’s focus on replacing coal as a source of residential heating are primarily responsible for this market surge. However, with new construction slowing in China, IMS Research has a tempered forecast from 2012 through 2017.

Markides added, “The growth in China alone over the past four or five years has essentially doubled the global heat meter market, however, regulatory change in other countries is now taking effect. For example, in Russia all large buildings on the district heating line must have a hub (district) meter installed. This has grown the market in Russia by more than 50% in 2011 over 2010, with continued growth forecast until 2017. Surpassing Russia, Turkey is forecast to be the world’s fastest growing heat meter market. Here, legislation is in place which promotes both the installation of heat meters and heat cost allocators, while new construction and increasing geothermal heating investment are also poised to drive market growth.”

Data for this analysis is drawn from IMS Research’s latest analysis of the global heat meter market, The World Market for Heat Meters – 2012, which published in May of 2012.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Hannover Messe 2016: Taking hold of the future - Partner Country status spotlights U.S. manufacturing; Honoring manufacturing excellence: The 2015 Product of the Year Winners
Inside IIoT: How technology, strategy can improve your operation; Dry media or web scrubber?; Six steps to design a PM program
World-class manufacturing: A recipe for success: Finding the right mix for a salad dressing line; 2015 Salary Survey: Manufacturing slump dims enthusiasm
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Warehouse winter comfort: The HTHV solution; Cooling with natural gas; Plastics industry booming
Managing automation upgrades, retrofits; Making technical, business sense; Ensuring network cyber security
Designing generator systems; Using online commissioning tools; Selective coordination best practices

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
click me