The Level Gauge market is projected to reach US$ 2,013.69 million by 2028 from US$ 1,391.31 million in 2021; it is expected to grow at a CAGR of 5.6% from 2022 to 2028.
Level gauges continue to be in high demand in the oil & gas industry, as they are extensively used for monitoring storage units and downstream processing plants. The growing crude oil production in certain countries such as the US is driving the demand for level gauges in the market. On the other hand, according to the International Energy Agency, the Asia Pacific region is the largest consumer and importer of natural gas, with China accounting for two-thirds of the global demand in 2021. Due to the absence of a high-pressure pipeline serving the region, transportation of natural gas is susceptible to leaks, making regular monitoring essential during shipment.
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In the Asia Pacific region, the oil and downstream gas sectors are most active in China, India, Japan, and South Korea, which collectively make up over 78% of the region's oil refining capacity. This suggests a potential opportunity for the emergence of a new end-user. Additionally, there is expected to be an increase in demand for measurement equipment from the midstream and downstream industries, leading to a boost in the growth of the level gauge market.
Fluid sensing plays a crucial role in the oil and gas industry. Water, chemical fluids, and oils are integral at every stage of a well's lifespan, particularly with the rising prevalence of hydraulic fracturing. Moreover, the adoption of new procedures and regulations has led to an increased need for monitoring a diverse range of chemicals and processing wastewater that is generated. These factors are contributing to the growing demand for level gauges in the oil and gas industry, thereby driving the expansion of the level gauge market.
Impact of COVID-19 Pandemic on Level Gauge Market
North America has the largest military expenditure in the world, with the United States leading the pack, followed by Canada and Mexico. However, the ongoing COVID-19 pandemic has resulted in a reduction in investments towards the development and acquisition of new military technologies in the region. The pandemic brought about a complete halt in the production, manufacturing, and supply of military and defense equipment due to restrictions on social activities across various countries. As a result, the North American level gauge industry experienced disruptions in its supply chain in the initial months, which led to a decrease in customer orders. This created a significant backlog of orders among key market players, adversely impacting the growth of the level gauge market.
Incorporating automatic tank gauge systems, also known as ATGs, into a fleet's maintenance program can provide significant benefits. ATGs are electronic gauge types installed in above- or below-ground tanks to track fuel volume or lubricant levels over time, which helps identify any liquid leaks. These systems allow for precise monitoring of fluid levels, volume-based usage, and tank temperatures, while also issuing alerts to operators when the tank contents reach critical low or high levels and detecting leaks. Moreover, the advanced features of modern ATGs include measuring gaps in connections between tanks, pipes, and hoses, as well as monitoring technology pressurization. These sophisticated monitoring systems can be either hard-wired or remotely accessed through a wireless modem.
The implementation of ATGs offers several benefits, including maintaining product integrity, reducing costly inventory loss, and mitigating environmental expenses that may arise from leaks. These monitoring systems continuously track the contents and temperature of tanks, enabling early detection of any minor or major leaks. By checking the temperature, ATGs can verify the integrity of fluids such as gasoline, which expand and contract in response to temperature fluctuations. However, ATG testing requires a waiting period after delivery to allow for temperature stabilization within the tank, as certain liquids may expand or contract. Furthermore, an additional advantage of incorporating autonomous tank gauge technology is ensuring that sufficient fuel is always available to meet inventory requirements.
ATG technology provides automatic notifications for reordering and refilling, streamlining the process and allowing facility managers and warehouse operators to concentrate on other tasks. Additionally, automated deliveries can be scheduled, further reducing the need for manual intervention. The increasing adoption of ATGs is fueling the growth of the level gauge market.
The level gauge market is segmented on the basis of gauge type, technology, end-user, and geography. Based on gauge type, the level gauge market is categorized into tank level, fuel level, water level, and mechanical level. Based on technology, the level gauge market is classified into magnetic level gauge, reflex level gauge, transparent level gauge, tabular level gauge, and others. By end-user, the level gauge market is segmented into oil & gas, food & beverages, chemical & petrochemical, marine, energy & power, and others. By geography, the level gauge market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America.
ABB Ltd.; Barksdale Inc.; Ayvaz; BinMaster; jbj Techniques Ltd.; Jogler, LLC; KOBOLD Messing GmbH; KROHNE Messtechnik GmbH; Krueger Sentry Gauge Co.; and SensorsOne Ltd are a few level gauge market players.
The level gauge market size has been determined using both primary and secondary research methods. The research process began with comprehensive secondary research, which utilized both internal and external sources to gather qualitative and quantitative information regarding the market. This process was crucial in gaining an understanding of the market and forecasting its size across all market segments. Additionally, numerous primary interviews were conducted with industry participants and commentators, including VPs, business development managers, market intelligence managers, national sales managers, external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the level gauge market. The purpose of these interviews was to verify the collected data and obtain further analytical insights.