Global Industrial Valve Outlook

  • The global industrial valve market is estimated at approximately $83.5 billion in 2016, and it is expected to grow at a CAGR of 4–5 percent to $101 billion by 2020 
  • Increase in oil price has created avenues for the growth in the oil producing nations in the Middle East, along with growing demand for valves in the petrochemical industries 
  • North America nearly had a flat growth in 2016, decreased oil production in the US and Canada, which is expected to revive by 2018, and low prospects of new business in the power sector will affect the market growth, whereas process efficiency taking the center stage in industries will propel the growth

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Global Industrial Valves: Market Maturity 

Smart valves are increasingly being adopted in North America and Europe because of their ability to control fugitive emissions which are required for compliance to environmental regulations, and also to ensure better health of the buyer’s employees.

Global Industrial Valves Trends

Developing regions such as LATAM, Middle East, Africa and APAC will boost the growth of industrial valves globally due to increased investment in infrastructure (power plants, water supply lines, sewage water treatment facilities, etc.).

Global Industrial Valves: Drivers and Constraints

  • Emerging countries provide a low-cost manufacturing base 
  • These countries are also the potential demand markets due to the need for considerable investments in key areas like water, power, municipal waste water treatment, pipelines, etc

Drivers

Market growth 

  • Immense rise in demand for power in developing regions has given rise to the need for power plant investments, leading to an increase in demand for industrial valves 
  • Replacement of manual valves with smart valves drives the market in the developed regions 
  • Process-oriented manufacturing units strive to continuously increase their operating efficiencies, resulting in increase in demand for valves 

Stringent environmental and  safety regulations 

  • Environmental, health and safety regulations such as Volatile Organic Compound (VOC) limitations require the end-user industries to upgrade to new and better 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 

Labour disturbance 

  • The labour market in emerging countries are mostly unorganised, and there are increasing occurrences of shutdowns leading to loss of productivity 

Drop in requirement from petrochemical industries 

  • The drop in oil prices has resulted in deteriorating margins, thus requiring petrochemical industries to reconsider capital spend, which led to a decrease in valve requirements from this sector