The Level Gauge market is anticipated to achieve a value of US$ 2,013.69 million by 2028, rising from US$ 1,391.31 million in 2021, with a projected compound annual growth rate (CAGR) of 5.6% from 2022 to 2028.
The demand for level gauges remains robust within the oil and gas sector, where they are crucial for overseeing storage facilities and downstream processing operations. The increase in crude oil production in various nations, particularly the United States, is a significant factor propelling the market for level gauges. Additionally, the International Energy Agency reports that the Asia Pacific region is the foremost consumer and importer of natural gas, with China representing two-thirds of the global demand in 2021. The lack of a high-pressure pipeline in this area makes natural gas transportation prone to leaks, necessitating consistent monitoring during transit.
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In the Asia Pacific region, the oil and downstream gas industries are predominantly active in countries like China, India, Japan, and South Korea, which together account for over 78% of the region's oil refining capacity. This scenario indicates a promising opportunity for new end-users to emerge. Furthermore, there is an anticipated rise in the demand for measurement instruments from the midstream and downstream sectors, which is expected to further stimulate the growth of the level gauge market.
Fluid sensing is vital in the oil and gas industry, as water, chemical fluids, and oils are essential throughout the lifecycle of a well, especially with the increasing use of hydraulic fracturing. The introduction of new procedures and regulations has heightened the necessity for monitoring a wide array of chemicals and the treatment of wastewater produced. These elements are contributing to the rising demand for level gauges in the oil and gas sector, thus fostering the expansion of the level gauge market.
Effects of the COVID-19 Pandemic on the Level Gauge Market
North America holds the highest military expenditure globally, with the United States at the forefront, followed by Canada and Mexico. However, the ongoing COVID-19 pandemic has led to a decline in investments aimed at developing and acquiring new military technologies in the region. The pandemic caused a complete standstill in the production, manufacturing, and supply of military and defense equipment due to social activity restrictions across various nations. Consequently, the North American level gauge industry faced supply chain disruptions in the early months, resulting in a drop in customer orders. This situation created a significant backlog of orders among major market players, negatively affecting the growth of the level gauge market.
Integrating automatic tank gauge systems (ATGs) into a fleet's maintenance strategy can yield substantial advantages. ATGs are electronic gauges installed in above-ground or underground tanks to monitor fuel volumes or lubricant levels over time, aiding in the detection of any liquid leaks. These systems facilitate accurate tracking of fluid levels, volume-based consumption, and tank temperatures, while also alerting operators when tank contents reach critical low or high thresholds and identifying leaks. Moreover, modern ATGs come equipped with advanced features that measure gaps in connections between tanks, pipes, and hoses, as well as monitor the pressurization of technology. These sophisticated monitoring systems can be hard-wired or accessed remotely via a wireless modem.
The adoption of ATGs brings numerous benefits, such as preserving product integrity, minimizing costly inventory losses, and reducing environmental liabilities that may arise from leaks. These monitoring systems continuously observe the contents and temperature of tanks, allowing for early detection of both minor and major leaks. By monitoring temperature, ATGs can confirm the integrity of fluids like gasoline, which expand and contract with temperature changes. However, ATG testing necessitates a waiting period post-delivery to allow for temperature stabilization within the tank, as certain liquids may undergo expansion or contraction. Additionally, a key advantage of implementing autonomous tank gauge technology is ensuring that adequate fuel is consistently available to meet inventory needs.
ATG technology offers automatic notifications for reordering and refilling, streamlining operations and enabling facility managers and warehouse operators to focus on other responsibilities. Furthermore, automated delivery scheduling can further minimize the need for manual intervention. The growing adoption of ATGs is driving the expansion of the level gauge market.
The level gauge market is categorized based on gauge type, technology, end-user, and geography. In terms of gauge type, the market is divided into tank level, fuel level, water level, and mechanical level. Regarding technology, the level gauge market includes magnetic level gauges, reflex level gauges, transparent level gauges, tabular level gauges, and others. By end-user, the market is segmented into oil and gas, food and beverages, chemical and petrochemical, marine, energy and power, and others. Geographically, the level gauge market is primarily divided into North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South and Central America.
Key players in the level gauge market include ABB Ltd., Barksdale Inc., Ayvaz, BinMaster, jbj Techniques Ltd., Jogler, LLC, KOBOLD Messing GmbH, KROHNE Messtechnik GmbH, Krueger Sentry Gauge Co., and SensorsOne Ltd.
The size of the level gauge market has been determined through both primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data regarding the market. This step was essential for understanding the market and forecasting its size across all segments. Additionally, numerous primary interviews were conducted with industry participants and experts, including VPs, business development managers, market intelligence managers, national sales managers, external consultants such as valuation experts, research analysts, and key opinion leaders in the level gauge market. These interviews aimed to validate the collected data and gain further analytical insights.