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.



Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2017 Top Plant.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
February 2018
2017 Product of the Year winners, retrofitting a press, IMTS and Hannover Messe preview, natural refrigerants, testing steam traps
March 2018
SCCR, 2018 Maintenance study, and VFDs in a washdown environment.
Jan/Feb 2018
Welding ergonomics, 2017 Salary Survey, and surge protection
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
December 2017
Product of the Year winners, Pattern recognition, Engineering analytics, Revitalize older pump installations
April 2018
Implementing a DCS, stepper motors, intelligent motion control, remote monitoring of irrigation systems
February 2018
Setting internal automation standards
December 2017
PID controllers, Solar-powered SCADA, Using 80 GHz radar sensors

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

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
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 Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Maintenance & Safety
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
Industrial Analytics
This digital report explains how plant engineers and subject matter experts (SME) need support for time series data and its many challenges.
IIoT: Operations & IT
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me