Valve marketoutlook looks promising as end-user industries fuel demand
The global valves market, currently estimated at $80 billion, is forecasted to be around $95 billion by 2019, marking a CAGR of 4.4 percent.
Oil and gas, refining, chemical, and power generation are the major demand driving industries for valves. The emergence of smart valves mainly in the oil and gas industry is expected to increase the revenues of the valves market.
APAC, Africa and LATAM arethe emerging markets for valves due to higher investments in infrastructural, industrial and water projects in these developing economies.
In 2016 alone, oil and gas exploration firms are expected to spend more than $10 billion on valves. The chemical industry is expected to generate sales of over $6 billion. The valves market is expected to be big for basic chemical applications in Asia. In the U.S. and Europe, the market is expected to be major for applications in fine chemicals.
- Industrial valves are critical components that are used in multiple processes across industries. The global valves industry was valued at around $80 billion in 2015 with a CAGR of 4.4 percent. It is estimated to be around $95 billion by 2019.
- Asian market is the fastest growing market and is expected to witness a growth of around 6-7 percent year-on-year until 2018.
- The emergence of smart valves mainly in the oil and gas industry is expected to increase the revenues of the valves market. Smart valves are motor-driven valves with features such as device diagnostics, self-test and error reporting.
- The oil and gas industry is a major consumer of valves. Demand for natural gas is expected to increase by 17 percent to reach 3.94 trillion cubic meters by 2017. This will ensure increased demand for high precision valves in Asia and the U.S.
Key end-user segments in these regions, the oil and gas, power generation and water and wastewater industries are expected to drive the demand for valves boosting their market potential.Key reasons affecting the demand for valves are:
- Aging infrastructure
- Automation and servicingrequirements
- Growing production of shale gas and oil sands in North America
- Increasing exploration activity in other regions such as Asia and Africa
- Investments in the offshore oil and gas industry in Latin America
Related Insights:View All
Get more stories like this
Subscirbe for more news,updates and insights from Beroe