WELCOME
Weekly selected highlights in flow control, treatment and
combustion from the many McIlvaine publications.
·
High Performance Cartridges Represent Thirty Percent of
the Market
·
Forecasting Combust, Flow and Treat Purchases of OEMs
·
Shale Oil and Gas will be Top Markets for Combust, Flow
and Treat Products
·
Gas Turbine Power Plants are Leading the Way in the
Adoption of IIoT and Remote O&M
High Performance Cartridges
Represent Thirty Percent of the Market
Liquid cartridges can be segmented by
construction. String wound are commodity designs as are some nonwovens.
However there are high performance nonwovens and membrane cartridges which are
used in critical applications in the pharmaceutical, chemical and semiconductor
industry. This high performance segment of the market accounts for 30% of
the total. This percentage is based on revenues not units since the high
performance cartridges are much more expensive than the commodity designs. The
market for cartridges to purify liquids will reach $20 billion worldwide by
2024. This is the latest prediction of the McIlvaine Company in
N024 Cartridge Filters: World Market.
The report also provides projected
purchases for hundreds of semiconductor, pharmaceutical, chemical, food and
beverage companies.
Commercial and residential purchasers
will account for half the total market which includes membrane, non-woven,
string wound and metal cartridges. However in the membrane segment the
pharmaceutical industry will be the largest purchaser followed by health care
and then the chemical industry.
Membrane cartridge sales will increase
faster than total cartridge sales due to the higher efficiency and improvements
in membrane technology. Industry consolidation is expected to continue and to
accelerate due to the utilization of remote monitoring technology to continually
assess cartridge filter health and performance. The large filter companies such
as Mann + Hummel, Parker Hannifin and Donaldson are investing heavily in remote
monitoring systems. This will allow them to provide comprehensive service and
replacement programs.
One division of Parker already
supplies replacements for all the filters in a plant including those supplied by
competitors. Many plants have thousands of cartridges. So the supply of
replacements carries with it a high administrative cost relative to filter
price. Blue tooth technology can be imbedded in pressure sensors attached to
each filter at nominal cost. When pressure levels reach a pre-determined point
the replacement filters can be automatically ordered.
For more information on this forecast
click on
N024 Cartridge Filters: World Market.
Forecasting Combust, Flow and Treat
Purchases of OEMs
It is now possible to forecast
purchases of valves, pumps, instrumentation, fans, compressors, nozzles,
filters, centrifuges and other products and services used in applications
involving combustion, flow and treatment (CFT). There are forecasts for
owners and forecasts for OEMs. Forecasts are provided for thousands of
companies comprising over 90 percent of the market. These forecasts can be
uploaded into the supplier CRM System. Most of the repair, replace and upgrade
decisions will be made by the end users. Decisions regarding CFT products for
new systems will be made by the OEMs but with specifications provided by the
owner.
The owner forecasts are easily
predictable. The forecasts of purchases by OEMS are difficult because the
OEM sales revenue can fluctuate greatly from year to year. However, average
annual estimates for the next five years can be provided along with details on
large projects which will have near term impact. The purpose is not
to identify specific sales leads but to provide insights to further assist in an
ongoing sales program.
The big advantage of a sales program
based on purchase forecasts is the opportunity to work with the customer on a
continuing basis and position the supplier for favorable consideration when
specific projects do occur. McIlvaine tracks large project activity in many
different industries with databases and alerts.
One important CFT component purchaser
is the merged Mitsubishi-Hitachi group. A new division within the group is Power
& Energy Systems Business (PESB). This group includes the operations
designing, delivering and supporting combustion systems. The group has been the
leading supplier of gas turbines worldwide in the most recent quarter. It
has full involvement in coal fired boilers and is the world's largest supplier
of Flue Gas Desulfurization Systems outside of China.
PESB has adopted a new solution
service process known as "CAP-D". "C" stands for "communication" with the
customer and the market. "A" stands for "analysis" in order to provide optimal
solutions. "P" stands for "product" and finding the exact products and
technologies to resolve the customer's needs. Finally, "D" stands for "delivery
of service" and the provision of compound services.
From the sales perspective of
component suppliers this new initiative offers an additional route to
replacement and repair revenue. PESB is analyzing products and providing
services for monitoring and replacement. PESB therefore becomes a
purchaser of CFT components for the initial installation but also for
replacement and service on a continuing basis.
McIlvaine is providing the purchase
forecasts for each CFT OEM but also supplying details on major projects.
The Utility E Alert published weekly by the McIlvaine
company contains two articles about MHPS projects in the Alert issued June 29,
2018. The first involves environmental systems upgrade work at Unit 3 of
the Boryeong Power Station operated by Korea Midland Power Co., Ltd. (KOMIPO).
These systems incorporate valves, pumps, oxidation compressor, nozzles and other
CFT components. The second details an upgrade of the boiler
combustion tuning system using artificial intelligence (AI) technologies at
Taiwan Power Company's Linkou Thermal Power Plants. Both projects include a
range of liquid, gas and free flowing solids measurement devices.
The sales program based on forecasting
end user and OEM purchases is not founded on sales leads such as details on
these two projects. Instead the program is built on establishing long term
relationships with customers. On the other hand information on major
projects is an additional tool which can be useful.
For more details on the sales program
based on OEM and end user forecasts click on
www.mcilvainecmpany.com
For more information on power plant project tracking click on
42EI Utility Tracking System
and
59EI Gas Turbine and Reciprocating Engine Supplier
Program
Shale Oil and Gas will be Top Markets for Combust, Flow and Treat Products
Shale oil and gas are contributing to solid growth in the U.S. economy and
increasing markets for combust, flow and treat companies. The
opportunities lie in production, transportation and processing. This
opportunity is analyzed in a free video at https://youtu.be/UxZCfMhBJ7k
The Industrial Internet of Things (IIoT) empowered by the Industrial Internet of
Wisdom (IIoW) will play a large role in the competition between oil and gas
extracted from shale in the U.S. and conventional extraction in the Middle East
and elsewhere. The IIoT components can be segmented into guide, control
and measure.
Extraction: The large number of components needed in shale fracturing creates a
big opportunity for IIoT. A mobile fracturing unit can be equipped with real
time monitoring of acidizing units, fracking pumps, chemical additive units,
blenders, large generators and other components. The specific signals analyzed
include pressure signals, oil temperature signals, horsepower signals, rpm
signals and other parameters.
Transportation: New gas pipelines are boosting output from shale fields in
three states by giving producers access to new domestic and international
markets.
The U.S. is now a net exporter of natural gas for the first time since 1957 due
to increased sales to Mexico, the opening of new markets through liquefied
natural gas and declining imports from Canada. The United States is shipping LNG
to at least 20 foreign markets and exports of LNG will continue to grow as
terminals on the Gulf Coast reach capacity and companies expand or develop new
terminals.
Shale oil transportation is handicapped by the lack of east-west routes. More
pipelines are needed to accommodate the increasing production.
IIoT and remote O&M are very cost effective due to the remote location of many
operations. For example, gas with H2S is piped from the Eagle
Ford basin. Gas driven emergency shut off valves are not an option because
of the H2S. The location is remote from any electrical supply.
The solution was a remotely monitored battery operated valve.
Processing: Refineries are expanding to accommodate the increasing oil
production. Significant quantities of gas are being converted to LNG.
Other processes include the utilization of by-products. Shale gas produces
by-product liquids. Shell Chemicals' $6 billion ethane cracker being built in
Beaver County, PA is just one of 13 ethane crackers being built between 2017 and
2021.
Shale oil produces significant amounts of by-product methane. New regulations
are limiting flaring of this gas and requiring processing and utilization.
All these processes contain many valves, pumps, and treatment modules which can
be remotely monitored and controlled.
Information on the IIoT shale opportunity is supplied in
N031 Industrial IOT and Remote O&M.
Details on the projects and participants are covered in N049
Oil, Gas, Shale and Refining Markets and Projects
Gas Turbine Power Plants are Leading the Way in the
Adoption of IIoT and Remote O&M
A free webinar relative to the growth of IIoT for the enhanced performance of
combust, flow and treat products in gas turbine power plants can be viewed at
https://youtu.be/OBeeTfWgb9A .
The U.S has the largest inventory of gas turbine power plants. Due to the
low cost of gas there will be a steady increase in new plants. Owners are
tasked with meeting tough environmental regulations while striving to minimize
the cost of operations. Efficiency is a key cost factor. The optimum
operation and maintenance of pumps, valves, rotating elements, catalyst and
other components can now be achieved thanks to improvements in the guide,
control and measure products.
Forecasts and tracking of gas turbine projects are provided in Gas
Turbine Supplier Program
The use of IIoT in the power and other industries is analyzed in
IIoT and Remote O&M