Is Cheap Oil Driving the Global Gas Meter Market?
Low oil prices and infrastructure investment in emerging markets into midstream and downstream sectors primarily driving global gas meter market
Badger Meter Inc., one of the
star performers in the global gas meter market, has recently
gone on a bull run on the NASDAQ, outperforming even the most optimistic
estimate. Record sales equalling $104 million, decreasing cost of sales and
higher margins were all some of the major reasons behind the run. However, this
is in no way should deny the unlimited potential that global gas meter market
has in the world today.
TechSci contacted experts that
worked on the report “Global Gas Meter
Market, Competition Forecast and Opportunities, 2012–2022” to gather some
more information on this dynamic and competitive market.
Low Energy Prices Fuel Global Gas Meter Market
Aforementioned TechSci Research
report suggests that the global gas meter market stood at $2.53 billion in
2016, and is forecast to exhibit a CAGR of over 8% during 2017-2022, to cross
$4.2 billion by 2022. One of the major reasons behind this is the global oil
glut that we see today.
Gas meters are used as specialized
flow meters, used to measure the volume of fuel gases such as natural gas and
liquefied petroleum gas. Naturally, a decline in energy prices would imply an
increase in demand for the same, which by extension would accelerate demand in
global gas meter market.
In fact, a previous TechSci
Research article “A Bearish Oil Market
Leaves OPEC at Uncertain Crossroads” elucidates in detail as to the causes
of decline in energy prices, and how the markets may not clear for a very long
time. Thus, we may be stuck with low oil prices for quite a while, which will
significantly boost usage of global gas meter market products.
The fascinating thing about this
oil market is that while the world is consuming oil at near-record levels, we
honestly don’t even know if oil consumption has peaked yet. This can only be a
boost to global gas meter market since it makes sense to assume that an
increase in oil consumption would at least trickle down to some extent to the
gas meter industry.
City Gas Distribution and Global Gas Meter Market
Gas meters are utilized generally
in residential, industrial and commercial buildings. Therefore, city gas
distribution networks play a major role in the promulgation of the global gas
meter market given that CGD lines are used in tandem with global gas meter
market products.
TechSci Research article “APAC Oil & Gas Pipeline: Intertwined
With China-India-Japan?” talks about the major expansion that we are seeing
in CGD networks today. While most of the developed world, which resides mainly
in North America and Europe, enjoys a substantial CGD network, emerging markets
are catching up fast.
Increased construction of
midstream and downstream infrastructure in APAC region is also leading to
expansion in piped gas networks in the countries. Many of the countries in APAC
being net importers, are now bargaining with energy exporters to get better
deals and thus oil consumption in such regions is increasing. This is boosting
the global gas meter market as well.
APAC oil & gas pipeline
market size is one of the biggest in the world, valued at $13.33 billion in
2016. It is also one of the fastest growing, with the growing rate of real
wages and a steadily improving supply side primarily the APAC oil & gas
market. A promulgation of the same would lead to a conscious incline in global
gas meter market size.
Please follow our LinkedIn and Twitter pages to get live updates on market research insights and analysis.