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.

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