Low-cost ultrasonic level gauges revive market

Edited by the Engineeringtalk editorial team Mar 28, 2003

The worldwide market for continuous ultrasonic level gauges is expected to grow at a compounded annual growth rate of 1.2% over the next five years.

The proliferation of low-cost versions provides growth prospects for continuous ultrasonic level devices in terms of units sold, but with little growth in revenues.

The worldwide market for continuous ultrasonic level gauges is expected to grow at a compounded annual growth rate (CAGR) of 1.2% over the next five years.

The market was $303.9 million in 2002 and is forecasted to be over $322 million in 2007, according to a new ARC Advisory Group study.

This new breed of transmitter is getting smaller in size and operates at a much higher frequency than the traditional 40kHz.

"In the price sensitive water and wastewater industry where ultrasonic technology is preferred, devices priced in the $500-1000 range are an important extension of the product line.

Suppliers offering low cost versions will be in the best position to retain and perhaps even gain market share", according to Sr Analyst Paula Hollywood, the principal author of ARC's "Continuous ultrasonic level worldwide outlook".

In 2002, the preponderance of supplier revenues for continuous ultrasonic level devices continued to be derived from hardware.

Software and services accounted for 5% or less of revenues even from the market leaders.

A wholesale shift is not expected in the forecast period.

However, the shift is beginning to take shape as suppliers evolve from product suppliers to vendor managed inventory (VMI) solution providers.

As users become more aware of the impact of the supply chain on their ability to achieve operation excellence, manufacturers will implement VMI solutions in increasing numbers.

Wireless products complement VMI systems.

Tank level management systems provide users maximum control over product distribution, collection, and overall vessel management.

With wireless, there are no boundaries.

A variety of industries can benefit from the maximum control over product distribution, collection, and vessel management that tank level management systems in general provide.

Industries where ultrasonic level technology should have above average growth are energy, pharmaceuticals, food and beverage, and water and wastewater.

All could benefit from ultrasonic based VMI solutions.

Continuous ultrasonic technology is expected to experience the largest growth in the basic service industries of water and wastewater and electric power generation.

Because many Asian countries are still developing their basic service infrastructure and industrial bases, countries in this part of the world offer the best opportunity for growth from a regional perspective.

Due to their large populations, countries such as China and India will need strong food and beverage and pharmaceutical industries.

Ultrasonic technology is strong in both industries.

Above average growth is projected in each.