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1Flow Research, Inc.27 Water StreetWakefield, MA 01880(781) 245-3200(781) 224-7552 (fax)www.flowresearch.comUltrasonic Flowmeter Study OverviewFlow Research has completed a new market study on the worldwide ultrasonic flowmetermarket. The study was conducted by Flow Research. One goal of the study was to determinethe size of the ultrasonic flowmeter market in 2007, and to forecast market size through 2012.The study is called The World Market for Ultrasonic Flowmeters, 3rd Edition.The study includes the following global elements:x Worldwide market size and market shares for ultrasonic flowmeters in 2007x Market growth for all types of ultrasonic flowmeters through 2012x Industries and applications where ultrasonic flowmeters are used, with market growthareasx A product analysis for the main companies selling into the ultrasonic flowmeter marketx Strategies to manufacturers for selling into the ultrasonic flowmeter marketx Company profiles of the main suppliers of ultrasonic flowmeters.The ultrasonic flowmeter market continues tobe one of the fastest growing flowmetermarkets. One driving force behind thismarket are the expanding markets for custodytransfer of natural gas and petroleum liquids.One important issue is the growth in thecontrast between transit time and Dopplerflowmeters. While Doppler flowmetersremain one of the best solutions for dirtyliquids, transit time flowmeters have beenshowing faster growth in recent years. MuchOverview-The World Market for Ultrasonic Flowmeters, 3rd EditionFlow Research, Inc.

2of the new product development is going into transit time meters. Transit time flowmeters aretypically more accurate than Doppler meters, and multipath transit time meters are used forcustody transfer of petroleum liquids. This study also looks at growth in the hybrid flowmetermarket.This study also examines the growing use of ultrasonic flowmeters for gas flow measurement.Custody transfer of natural gas is a fast growing market, especially with the increased popularityof natural gas as an energy source, and due to the rising price of both oil and natural gas.Custody transfer is one of a number of gas applications that are boosting sales of ultrasonicflowmeters.Steam flow measurement is a new frontier forultrasonic flowmeters. Currently, this market isdominated by differential pressure (DP) and vortexflowmeters. However, as the technology improves,this is becoming a growth area for ultrasonicflowmeters. Steam flow measurement is growing inimportance as companies look to increase energyefficiency and cut energy costs. The high accuracyand reliability of ultrasonic meters make this anattractive option for some steam flow applications.Background of StudyThere are two main types of ultrasonic flowmeters: transit time and Doppler. A transit timeultrasonic flowmeter has both a sender and a receiver. It sends two ultrasonic signals across apipe at an angle: one with the flow, and one against the flow. The meter then measures the“transit time” of each signal. When the ultrasonic signal travels with the flow, it travels fasterthan when it travels against the flow. The difference between the two transit times isproportional to flowrate.Doppler flowmeters also send an ultrasonic signal across a pipe. Instead of tracking the time thesignal takes to cross to the other side, a Doppler flowmeter relies on having the signal deflectedby particles in the flowstream. These particles are traveling at the same speed as the flow. As thesignal passes through the stream, its frequency shifts in proportion to the mean velocity of thefluid. A receiver detects the reflected signal and measures its frequency. The meter calculatesflow by comparing the generated and detected frequencies. Doppler ultrasonic flowmeters areused with dirty liquids or slurries. They are not used to measure gas or steam flow.Ultrasonic flowmeters were first introduced for industrial use in 1963 by Tokyo Keiki (whichlater became Tokimec) in Japan. Tokimec is located in Tokyo, Japan. In 1972, ControlotronOverview-The World Market for Ultrasonic Flowmeters, 3rd EditionFlow Research, Inc.

3(Hauppauge, New York) became the first U.S. manufacturer to market ultrasonic flowmeters inthe United States. In the late 1970s and early 1980s, both Panametrics (Waltham,Massachusetts) and Ultraflux (Poissy Cedex, France) experimented with the use of ultrasonicflowmeters to measure gas flow. Initially, ultrasonic flowmeters were not well understood, andwere sometimes misapplied. Many technological improvements have been made in the past 10years, and the limitations of ultrasonic meters are better understood. Advances in transit timetechnology have broadened the types of liquids that transit time flowmeters can be used on.Many transit time meters today can handle liquids containing some impurities.Rationale for StudySince completing our first ultrasonic study in 2001, we have been following this market veryclosely. We published the 2nd edition of this study in 2003. Many developments have beendescribed in our quarterly report, the Market Barometer. Each issue of the Market Barometerincludes an update on the ultrasonic flowmeter market. This new study builds on the knowledgewe have gained over the years since our last full treatment of the subject, but is a completelyfresh look since most of the research was done in the second half of 2007. For more informationon the Market Barometer, go to www.worldflow.com.Key Issues AddressedThis study addresses the key issues in the ultrasonic flowmeter market, including:x x x x x x x Growth in the ultrasonic transit time flowmeter marketShipments of clamp-on, spoolpiece, and insertion metersComparison of portable vs. fixed ultrasonic flowmetersThe expanding use of ultrasonic flowmeters for custody transfer of natural gasThe emerging market for ultrasonic flowmeters in steam flow measurementThe market for Doppler and hybrid ultrasonic flowmetersMergers and acquisitions in the ultrasonic flowmeter marketSegmentationThe segmentation for this study is as follows.Geographic Segmentation:x x x x North AmericaEuropeMiddle East/AfricaJapanOverview-The World Market for Ultrasonic Flowmeters, 3rd EditionFlow Research, Inc.

4x Chinax Asia without Japan/Chinax Latin AmericaAverage Selling Price of Ultrasonic Flowmeters by Regionx North Americax Europex Middle East/Africax Japanx Chinax Asia w/o Japan/Chinax Latin AmericaUltrasonic Flowmeters by Technology TypeThere are four kinds of ultrasonic flowmeters:x x x x Single and dual path transit timeMultipath transit timeDopplerHybridSingle and Dual Path Ultrasonic FlowmetersSingle and dual path ultrasonic flowmeters are segmented bythe seven geographic regions (see above), with forecasts to2012.What’s in this for mycompany?x See the emerging applicationsand where the growth isx Understand world and regionalmarketsx Get to know your realcompetitionx Learn what other suppliersmanufacture, where, and forwhomx The best information createsthe best decisionsMultipath Ultrasonic FlowmetersMultipath ultrasonic flowmeters are segmented by the seven geographic regions (see above),with forecasts to 2012.Doppler Ultrasonic FlowmetersDoppler ultrasonic flowmeters are segmented by the seven geographic regions (see above), withforecasts to 2012.Overview-The World Market for Ultrasonic Flowmeters, 3rd EditionFlow Research, Inc.

5Hybrid Ultrasonic FlowmetersHybrid ultrasonic flowmeters are segmented by the seven geographic regions (see above), withforecasts to 2012.Transit Time Ultrasonic FlowmetersTransit time flowmeters are distinguished by path type as follows:x Clamp-Onx InsertionUltrasonic Flowmeters by Mounting TypeThis study distinguishes between mounting types as follows:x Clamp-on ultrasonic flowmetersx Spoolpiece ultrasonic flowmetersx Insertion ultrasonic flowmetersUltrasonic flowmeters are segmented by mounting type by geographic region. Forecasts to 2012are included.Clamp-On Flowmeters by Mounting TypeThis study distinguishes between mounting types for clamp-on ultrasonic flowmeters as follows:x Portable clamp-onx Fixed clamp-onPortable and fixed clamp-on ultrasonic flowmeters are segmented bygeographic region, with forecasts to 2012.Clamp-On and Insertion Ultrasonic Flowmeters by Fluid Typex Liquidx Gasx SteamClamp-on and insertion ultrasonic flowmeters are distinguished byfluid type by geographic region. Forecasts to 2012 by fluid type areincluded.What makes FlowResearch so special?x Our only focus is flowmetersand process instrumentation.x We research the big three:manufacturing, distribution,and application.x Our end-user surveys andperspectives are unique to theindustry.x Our Worldflow MonitoringService keeps you up-to-datebetween studies.x We only succeed when you do.Overview-The World Market for Ultrasonic Flowmeters, 3rd EditionFlow Research, Inc.

6Spoolpiece Ultrasonic Flowmeters by Fluid TypeSpoolpiece ultrasonic flowmeters are segmented in this study according to fluid type:x Liquidx Gasx SteamSpoolpiece ultrasonic flowmeters are distinguished by fluid type by geographic region.Forecasts to 2012 by fluid type are included.Transit Time Ultrasonic Flowmeters by Signal Typex Diametralx Chordalx HybridTransit time ultrasonic flowmeters are segmented by signal type by geographic region. Forecaststo 2012 are included.This study distinguishes line sizes for ultrasonic flowmeters as follows:Clamp-On Ultrasonic Flowmetersx 2 inchx 2 - 4 inchesx 4 – 8 inchesx 8 – 12 inchesx 12 – 20 inchesx 20 inchesInsertion Ultrasonic Flowmetersx 4 inchesx 4 – 8 inchesx 8 – 12 inchesx 12 – 20 inchesx 20 inchesSpoolpiece Ultrasonic Flowmetersx 2 inchx 2 - 4 inchesx 4 – 8 inchesx 8 – 12 inchesOverview-The World Market for Ultrasonic Flowmeters, 3rd EditionFlow Research, Inc.

7x 12 – 20 inchesx 20 inchesClamp-on, insertion, and spoolpiece ultrasonic flowmeters are segmented by the sevengeographic regions. Forecasts to 2012 are included by line size for all three types of ultrasonicflowmeters.Ultrasonic Flowmeters by Intelligence Level:Ultrasonic flowmeters are segmented in this study according to type:x Smartx ConventionalUltrasonic Flowmeters by Communication ProtocolUltrasonic flowmeters are segmented by thefollowing protocols:x x x x x x HARTFoundation FieldbusProfibusModbusProprietary DigitalOtherShipments of Transit Time UltrasonicFlowmeters by Number of Pathsx x x x x x Single PathDual PathThree PathFour PathFive PathSix PathsTransit time ultrasonic flowmeters are segmented by six paths by geographic region. Forecaststo 2012 are included.Shipments of Ultrasonic Flowmeters by Applicationx x x x x Custody Transfer-Natural GasCustody Transfer-LiquidsCheck MeteringProcess MeasurementFlare/Stack GasOverview-The World Market for Ultrasonic Flowmeters, 3rd EditionFlow Research, Inc.

8x District Heatingx OtherUltrasonic flowmeters are segmented by application by geographic region. Forecasts to 2012 areincluded.Clamp-On and Insertion Ultrasonic Flowmeters by IndustryUltrasonic flowmeters are used mainly in the process industries. The following industries areincluded in this study:x x x x x x x x x x Oil & Gas Production, Transportation, and DistributionRefiningChemicalPharmaceuticalFood & BeveragePulp & PaperMetals & MiningPowerWater & WastewaterOtherClamp-on and insertion ultrasonic flowmeters are segmented by industry by each of the sevengeographic regions. Forecasts worldwide and by region are included to 2012.Spoolpiece Ultrasonic Flowmeters by Industryx x x x x x x x x x Oil and Gas Production, Transportation, and DistributionRefiningChemicalPharmaceuticalFood & BeveragePulp & PaperMetals & MiningPowerWater & WastewaterOtherUltrasonic flowmeters by Sales ChannelsThe ultrasonic flowmeter market is segmented according to the following sales channels:x Direct Salesx Independent RepresentativesOverview-The World Market for Ultrasonic Flowmeters, 3rd EditionFlow Research, Inc.