4/8/2003 - A new market study from Venture Development Corporation (VDC) finds that, among the many technologies used for process level measurement and inventory tank gauging (ITG), the highest market growth rates through 2007 are expected to be for non-contact microwave/radar. ITG is the use of level measuring for inventory storage and custody transfer applications, rather than in process control.
As seen below, the process level measurement market is forecast to increase from about $332 million in 2002 to around $374 million in 2007, and the ITG market from about $87 million to $102.6 million.
These result in Compound Annual Growth Rates (CAGR) of 2.3% and 3.3% respectively. Shipment of non-contact microwave/radar devices to U.S. markets for process level applications are expected to increase from about $19 million in 2002 to around $30 million in 2007 at a 9.6% CAGR. Shipments for ITG applications are expected to also increase from about $19 million in 2007 to over $25 million in 2007, at a 6.5% CAGR. In the case of the ITG market, non-contact microwave/radar technology is expected to account for the largest market share of all the technologies used, at 25% of the total, in 2007.
FACTORS BEHIND MARKET GROWTH
In general, the U.S. level measurement and ITG markets are ones in which users primarily purchase such equipment for replacement of their existing systems. Generally, users expect these products to last a long time and often do not have planned obsolescence schedules. At the same time, a number of factors are expected to result in increased demand for such devices:
Jim Taylor, Group Manager for Industrial Automation at VDC said, "The growing popularity of non-contact microwave/radar in these applications stems from performance advantages over other technologies. Some of these are density and dielectric constant dependent, dust sensitive, humidity sensitive, maintenance intensive, non-operational under vacuum, pressure sensitive, sensitive to the atmosphere between the medium and sensor, sensitive to scaling, temperature sensitive, and suffer from other limitations."
Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, communications, software and power systems markets.
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