Proving the Business Case for the Internet of Things

Remote tank monitoring to see 36% CAGR, says Berg

Steve Rogerson
November 26, 2019
 
The global installed base of remote tank monitoring (RTM) systems is set to reach 11.9 million in 2023, up from 2.5 million units at the end of 2018, according to IoT analyst firm Berg Insight.
 
This represents a compound annual growth rate (CAGR) of 36.3 per cent.
 
Berg estimates that the European market accounted for more than 0.6 million active RTM systems at the end of 2018. The North American market is larger at around 0.9 million active units. The Asia-Pacific market had an installed base of about 0.7 million RTM systems at the end of 2018. South America and Middle East and Africa are smaller markets having installed bases of 127,000 units and 253,000 units, respectively.
 
There are more than 100 RTM vendors active on the market worldwide. Berg ranks Anova (formerly DataOnline) as the leading RTM provider in terms of the active installed base worldwide with an installed base of about 380,000 RTM units at the end of 2018. Anova has done a string of acquisitions including Independent Technologies, Wikon, ISA and iTank (Sierra Wireless) to become the largest RTM vendor with more than 1000 customers in 70 countries. This was before its merger this month with second-place Silicon Controls (see below).
 
Silicon Controls and SkyBitz (Ametek) were in second and third place having achieved installed bases of about 250,000 units and 130,000 units, respectively. Silicon Controls is based in Australia and primarily focuses on gas tanks whereas SkyBitz is based in the USA and most of its tanks under management can be found in North America and a few in Mexico and other countries.
 
Polish AIUT and Tecson from Germany shared fourth place and had each an installed base of 100,000 tank monitoring systems. ISA – Intelligent Sensing Anywhere – and Sensile Technologies follow and have reached 75,000 and 70,000 tanks under management respectively.
 
Varec, Atek Access Technologies, Dunraven Systems and Kingspan are also ranked among the largest providers with 35,000 to 50,000 units each. Other RTM providers with installed bases of more than 25,000 RTM systems in active use at the end of 2018 include Powelectrics, Tank Utility, FreeWave, SilentSoft and Insite Platform Partners.
 
Merger and acquisition activity on this market is just about to commence at the same time as new innovative companies enter the market.
 
“Anova is the most ambitious consolidator on the market and has become the largest RTM vendor worldwide as the result of four major acquisitions in the past 18 months,” said Johan Fagerberg, principal analyst at Berg Insight.
 
An additional recent transaction was the merger between Hawk Measurement and Flo-Corp in August 2019. Fagerberg anticipates that the market consolidation of the remote tank monitoring industry will accelerate in the next five years.
 
This month, Anova announced it had merged with Silicon Controls, provider of the Gaslog and a key player in the global LPG and propane industry.
 
With more than 25 years of experience providing end-to-end products in remote telemetry, Silicon Controls has leading positions with customers in North America, Europe and Australia.
 
“With a reputation for taking a consultative partnership approach to logistics transformation, we have secured a strong market presence and installed base,” said Mike Neuman, CEO of Silicon Controls. “Silicon has done extensive work over many years in the propane industry, helping customers decrease the number of trucks on the road by improving delivery efficiency.”
 
Robert Battye, Silicon Controls vice president for North America, added: “Collectively, we are reducing winter overtime, minimising miles per stop, improving safety and productivity, and addressing the growing decarbonisation conundrum. We’re stronger together, and that is the immediate value our customers will feel.”
 
This partnership will allow Anova to play a more significant role in supporting the LPG and propane industry across the globe. Most notably, Anova will increase its presence, and the availability of industrial IoT in Europe, offer relevant business models to an expanding Asian and South American market, and support the rapidly growing use of technology across North America.
 
In response to customers demanding more reliable technology to improve supply chain strategies and operational efficiencies, Anova continues to invest in R&D and is strengthening its industry engagement.
 
“Our customers need a dependable partner that is heavily invested in developing next-generation technology that will not only provide the lowest total cost of ownership, but, quite simply, make their lives easier,” said Chet Reshamwala, CEO of Anova. “The new Anova team has over 90 years of LPG and propane experience and intends to build on that, ensuring our customers have access to the best technology, equipment, partners and people to support our customers’ needs.”