2007 witnessed stagnation of the gas meters market caused by a substantial decline in export and stability of demand in the domestic market. The share of import constituted 17.5% of consumption, and the share of export constituted 15.5% of production.

It should be pointed out that Russian manufacturers meet the demand for household and industrial gas meters, but they are unable to meet the growing domestic requirements in communal meters.

GAS METERS PRODUCTION

The diagram below represents the data on the volumes of output of household and communal gas meters in 2007 as percentage.

Gasdevice CJSC - 43%

Tochmash FSUE APA - 15%

Signal Ltd. EPA - 14%

Elektropribor OJSC - 10%

Betar Ltd. PCF - 8%

ELSTER Gaselektronika Ltd. - 5%

Other manufacturers - 5%

Source: survey of gas meters manufacturers, Abercade estimates.

In 2007, Gasdevice CJSC led in the production of household gas meters. As compared to 2006, production growth constituted 19%. According to Abercade’s estimates, the share of Gasdevice CJSC in the total output of household and communal gas meters was 43%, and in the output of diaphragm gas meters – 50%. The company itself estimates its market share at 52-54%.

Following Gasdevice Company in the group of major market players are Tochmash FSUE APA (with a market share of 15%), Signal Ltd. EPO (13%) and Elektropribor OJSC (10%).

The outputs of the studies conducted by Abercade in 2004-2007 show that no substantial changes have taken place in the rating of the top market players in the past four years.

Export decline has had its impact on the domestic production of gas meters and, despite an increase in their output by some of the market players, 2007 marked market stagnation.

Major manufacturers of industrial gas meters are Arzamassky Instrument-Making Factory OJSC. Its market share, together with ELSTER Gaselektronika Ltd., constituted 83.5%.

The volume of output of household and communal gas meters constitutes 98.9% in kind, while the output of industrial meters is 1.1%.

In terms of money, household and communal gas meters account for 51.2%, while industrial gas meters account for 48.8%.

Diaphragm gas meters have the largest share of the market in kind - 86.51%, the share of jet meters is 12.1%, the share of ultrasonic gas meters is 0.8%, while all other types of gas meters account for 1%.

In terms of money, the share of diaphragm gas meters constitutes 76.2%, the share of jet meters is 14.2%, the share of ultrasonic gas meters is 8.4%, while all other types of gas meters account for 1.2%.

GAS METERS EXPORT

Export of household, communal and industrial gas meters in 2007, pieces

Source: Federal Customs Service of the Russian Federation, Abercade’s estimates.

In 2007, the export share of household gas meters constituted 98.9%, the share of communal meters was 1.1%, and that of industrial meters – 0.1%.

In terms of money, household meters accounted for 80.5%, communal meters – for 16.1%, and industrial gas meters – 3.4%.

Main consumers of gas meter manufactured in the Russian Federation are CIS countries. Four of them – Ukraine, Kazakhstan, Georgia and Azerbaijan – account for 92.9% in kind and 79% in terms of money.

The main exporting companies are Gasdevice (32.2%), Elektropribor (33.3%) and Tochmash (15.4%).

Main gas meter consumer countries in kind and in terms of money, 2007

Source: Federal Customs Service of the Russian Federation, Abercade’s estimates.

GAS METERS IMPORT

In the structure of import in kind the largest share belongs to household gas meters – 74.1%, while communal meters account for 24.3%, and industrial gas meters – for 1.6%.

In terms of money, household meters account for 34.2%, the share of communal meters constitutes 36.1%, and the share of industrial gas meters is 29.7%.

In 2007, the Russian Federation received gas meters from the following three main supplier countries: Germany, Slovakia and Ukraine. The share of import from these countries was equal to 70.4% in kind and 91.1% in terms of money.

The main supplier companies were ELSTER HANDEL (33.8%), PREMAGAS (22.8%), Yampolsky Instrument-making Factory (12.4%) and ACTARIS (10.2%).

The main gas meter importer countries in kind and in terms of money, 2007

Source: Federal Customs Service of the Russian Federation, Abercade’s estimates.

GAS METERS CONSUMPTION

The share of import in consumption constitutes 17.5%, and the share of export in production is 15.5%.

Estimates: Abercade Research Company

Estimates: Abercade Research Company

In 2007, the estimated consumption of household gas meters was 93.8%, consumption of communal gas meters was 4.8%, and consumption of industrial gas meters constituted 1.4%.

In terms of money, 40.9% of consumption fell on household meters, 11.9% - on communal gas meters, and 47.2% - on industrial gas meters.

MAIN CONCLUSIONS

2007 witnessed stagnation of the market caused by a substantial decline in export and a stable demand for the domestic market.

The share of import in consumption is 17.5%, and the share of export in production is 15.5%.

It should be pointed out that Russian manufacturers meet the demand for household and industrial meters, but they cannot fully meet the growing demand for communal meters in the domestic market.

The increasing demand for communal gas meters confirms a growing volume of import of such meters.

Characteristically, in 2007 the volume of import in kind was practically equal to the volume of export.

Abercade analysts are of the opinion that, despite the gas meter market decline in 2007, there are a number of prerequisites for its considerable growth in the next two years, namely:

- ongoing implementation of the Gazprom OSJC program of supplying populated areas with gas, and increasing number of gas users;

- implementation of the program of gas meters installation free of charge or at a reduced price in RF regions;

- rising gas tariffs in RF regions.