Potential applications for traditional mechanical flow meters are limited for a variety of reasons. In contrast, electronic, non-contact flow measurement systems offer several functional advantages, with demand for these flow meters set to spur growth in the European flow sensors and transmitters markets.
Frost & Sullivan reports that the European flow sensors and transmitters markets earned revenues of $1334.9million (EUR1043.5million) in 2005 and estimates this will reach $2113.7million (EUR1652.2million) in 2012.
The European flow sensors and transmitters market will be primarily driven by the migration of end users towards electronicnon-contact flow measurement systems notes Frost & Sullivan Research Analyst S Gomathinayagam. These flow meters offer advantages over mechanical flow meters in terms of higher accuracy and reliability and also do not obstruct the flow in pipelines."
As a resultelectronicnon-contacting flow meters are increasingly being preferred over mechanical flow sensors. Even as demand for electronic flow sensors and transmitters is set to rise steadily over the long termthey will increasingly replace existing mechanical systems in many instances.
Despite overall market expansionhoweverintense competition among market participants will lead to lower profitabilitywith companies adopting a low-price strategy in order to boost volume sales. This strategy will adversely affect the profitability of many smaller companies and may even threaten their existence.
At presentover 100 competitors offer relatively similar products at similar price and performance points. This makes the European flow sensors and transmitters markets highly competitive. To increase sales volumesthese market participants often resort to undercutting unit price.
Howeverthis strategy may adversely affect their profitability. Companies might be unable to realise economies of scale since market demand is not expected to grow at a similar rate. As suchit will be difficult for them to remain competitive and profitable.
"Market participants should focus on developing truly innovativecustomised products and solutions that offer better value to customers advises Mr Gomathinayagam. New product development programmes should be designed around feedback from customers and should be market driven."
Companies should understand their target end-user markets and their requirements. Monitoring customer feedbackunderstanding the unique requirements for target end-user markets and developing suitable solutions are some of the best practices that market participants will need to follow to establish a lasting relationship with customers and consolidate their position in the market.
'European Flow Sensors and Transmitters Markets' is part of the Sensors Subscription from Frost & Sullivanwhich also includes research in the following markets: world flow sensors and transmitters marketsEuropean pressure sensors and transmitters marketsworld pressure sensors and transmitters markets andEuropean level instruments markets.
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