Global Industrial Pipes, Valves & Fittings Outlook

  • The global industrial PVF market is estimated at approx. $62 billion in 2018
  • The market is expected to grow at a CAGR of 4–5 percent to $64.5 billion by 2019
  • The oil & gas industry for PVF is estimated at $6.82 billion in 2018

Pipes Valves and Fittings market size

Global Industrial PVF: Drivers and Constraints

Recovering shale gas production in North America will drive the demand for OCTG pipes, capable of sustaining greater tension, compression, and torsion.Growing the oil & gas industry in Australia will boost the demand for PVF in this region.

Drivers

Market growth

  • Large-scale inter-regional oil & gas projects will drive the demand for high performance corrosion-resistant steel and plastic pipes
  • Replacement of manual valves with smart valves drives the market in the developed regions
  • Manufacturing of seamless pipes using cross-roll piercing and elongation, along with plug mill technology, with world-class rollers, has improved the capacity of the seamless pipe production

Stringent environmental and safety regulations

  • Environmental, health, and safety regulations, such as VOC limitations, require end-user industries to upgrade to newer and better PVFs

Constraints

Duplication of technology

  • Patent violations and copies of the original by local players would hamper the growth of the valve 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

Industrial PVF: Cost Structure

  • Labor costs have a minimal increase in many developed economies, where highly engineered castings are made
  • Raw material prices are sensitive, and any upward movement of price is transferred to the buyers, as future trading or hedging of essential raw material is a rare practice among PVF manufacturers
  • Material is the major cost driver of PVF, and it accounts for approx. 65–70 percent of the total cost. The application of PVF determines which material should be used, as different materials have their own unique properties
  • Based on application of PVF, the following factors determine the cost:

           –Material of body and trim

           –Size of PVFs

           –Pressure rating

           –Temperature rating