The tank level monitoring system market size is expected to grow from USD 757 million in 2020 to USD 1,057 million by 2025, at a CAGR of 6.9%. Growing demand from process industries and growing demand for IoT-based tank level monitoring systems are the key factors driving the growth of the tank level monitoring system market.
Covid-19 Impact in the Tank level monitoring system market
The outbreak of the COVID-19 pandemic has adversely impacted the growth of several industries, including manufacturing, oil & gas, and many others. Oil & gas is a major end-use industry of the tank level monitoring system market. Due to COVID-19, many ongoing or new projects across the oil and gas value chain are likely to face many challenges in terms of project execution, planning, and risk management. More than 2000 EPC oil & gas projects across various segments, including LNG, petrochemical, and oil storage & refineries, have to come to a halt or are delayed due to the pandemic. The energy research firm Rystad Energy has predicted that a 25% decline in oil prices could result in a cut in oil and gas investments by USD 30 billion globally.
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Market for Oil & fuel to hold largest share in 2019
The market for oil & fuel accounted for the largest size in 2019. The levels of oil and fuel in storage tanks must be continuously monitored because of strict safety and environmental requirements. Overfilling or product discharge on deck and into the sea could have devastating consequences for human life and the environment. The charging and discharging procedures have to be carefully supervised. Advancements in technology have allowed the level sensing technology to measure oil and fuel levels in storage tanks. IoT-based solutions are also gaining traction in the oil & gas industry.
Market for invasive product type to hold largest share in 2019
The market for invasive type is estimated to account for the largest share of the overall tank level monitoring system market in 2019. Invasive tank level monitoring solution products offer a direct and reliable method to monitor a variety of liquid types. These types of products are compatible with most fluid types. The main advantage of the invasive type of products is that they are non-powered and are relatively inexpensive as compared to the non-invasive type of tank level monitoring system products.
Market in APAC to grow at highest CAGR during the forecast period
In terms of value, APAC to grow at highest CAGR during the forecast period. Among all applications, the oil & fuel segment is the most dominant application in the APAC tank level monitoring system market. APAC is expected to show significant growth in the oil & gas industry. India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally.
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Key Market Players
TE Connectivity (Switzerland), Emerson Electricl (US), Graco Inc (US), Piusi (Italy), Tank Scan (US), Gauging Systems (US), Varec Inc (US), Digi International (US), Dunraven Systems (Ireleand), Schneider Electric (France), Pneumercator (US), The Southern Company (US), Skybitz (US), AIUT (US), AXSensor (Sweden), HMS Networks (Switzerland), Kingspan (Ireland), Schmitt Industries Inc (Germany), Oriel Systems (UK) and Powelectrics (UK) are a few major companies dominating the Tank level monitoring system market.
Tank level monitoring system market dynamics
Driver: Growing demand from process industries
Increasing demand for tank level monitoring systems for safety and efficiency requirements, especially from the process industries, such as chemical plants, pulp & paper, steel mills, power generation, and glass manufacturing, is expected to boost the overall growth of the tank level monitoring system market.
Overfills result in material and production loss while threatening to damage the silo itself. For tanks containing hazardous materials, spilling could also lead to disastrous environmental impacts and associated cleanup costs and fines. Failing to refill feedstock tanks in time could also cause businesses to run out of stock, which leads to delayed production and delivery. This is one of the major reasons behind the adoption of tank level monitoring systems.
Restraint: Security issues in using wireless communication
A tank level monitoring system provides meaningful data on tank fuel and level and any leaks for industrial applications. Moreover, wireless infrastructure needs analytics software and Internet connections. The hardware and software in the tank level monitoring system are interconnected and communicate with each other through the Internet. The data retrieved from the tank level monitoring system uses a well-built structure for storage, which may lead to data loss or malfunctions.
Opportunity: Growing popularity of IoT-based tank level monitoring systems
Compared to wired communications, a wireless IoT solution for industrial tank monitoring has many advantages. Wireless connectivity is flexible, cost-effective, and much easy to deploy. With a long-range and power-efficient solution like low power wide area networks (LPWANs), one can easily connect hard-to-reach assets using sensors operating on independent batteries that can last for years.
Due to simple maintenance and low device and network costs, LPWANs can be implemented at a lower cost than other wireless alternatives. By unlocking 24/7 asset visibility and feeding this data into enterprise management systems, a wireless IoT architecture enables enhanced production planning, asset management and protection, and operational safety.
Challenge: Overlapping technologies for similar applications
One of the major challenges impacting the growth of the tank level monitoring system market is the use of different level-sensing technologies for the same application. Overlapping of technologies leads to the cannibalization of the market. For instance, the ultrasonic and radar transmitters are highly preferred instead of tank level monitoring systems, which, in turn, leads to inhibiting its market growth.