Regional Market Outlook on Industrial Valves

Digital technologies are playing a important role in improving performance through new applications developed for improving productivity and efficiency in the field.

  • Using 3D printing for manufacturing valves will aid in cost savings and save lead time and help in building complex design valves efficiently.
  • IoT can be used to mange the plant effectively by leveraging IOT in the form of wireless drill sensors to detect failures in valves before they lead to shutdown or spill.
  • Simulation software can be used to analyze and test various solutions without building and testing multiple designs and prototypes.
  • The demand for smart valves continue to grow at a faster phase, due to its feature to monitor pressure, temperature, flowrate changes along with instant transfer of information, like diagnostics, control instructions, documentation between the valve and control room

trends-industrial-valves-australia

Australia Industrial Valves: Drivers and Constraints

Growing water and wastewater management industry in Australia will boost the demand for industrial valves in this region.

Drivers

Market growth

  • Shift in focus towards renewable energy sources, such as hydro, wind, and biomass power plants will drive the demand for industrial valves
  • Replacement of manual valves with smart valves drives the market in this region
  • Increase in production of Liquid Natural Gas (LNG) in Australia, due to technological advancements and the government’s efforts to enable Australia to achieve the top position will drive the demand for industrial valves

Stringent environmental and safety regulations

  • Environmental, health, and safety regulations, such as VOC limitations, require the end-user industries to upgrade to new and better industrial valves

Constraints

Duplication of technology

  • Patent violations and copies of the original by the local players would hamper the growth of the valves market, due to the copies being relatively cheaper

Labor disturbance

  • The labor market in emerging countries is mostly unorganized, and there are increasing occurrences of shutdowns, leading to loss of productivity

Porter’s Five Forces Analysis: Australia

 Supplier Power

  • In developing markets, fewer suppliers have the capability to cater to the quality standards required in oil & gas. In such cases, supplier has medium bargaining power

Barriers to New Entrants

  • Barriers to new entrants will be huge investments, technical expertise, product offerings, distribution network, and gaining buyer confidence

Intensity of Rivalry

  • The market is highly fragmented
  • Consolidation of market is happening with advent of global supplier into developed markets by means of M&A
  • With the entry of global players into the market, competition has increased and local players are adapting newer technologies to stay competitive

Threat of Substitutes

  • There is no substitute for pipes, valves, and fittings
  • Constant innovation is yet to emerge in this segment, which will lead to adoption of automated valves

Buyer Power

  • Switching cost to a buyer is low in the case of generic products. In the case of the oil & gas industry, which is the largest contributor to the valves industry, the buyer has higher bargaining power, due to high volume of purchase