Industrial Valves Market to reach $101 billion by 2020, says Beroe Inc
Source: PR Newswire
RALEIGH, North Carolina - The global industrial valves market is expected to grow at a CAGR of 4 - 5 percent until 2020, according to Beroe Inc., a procurement intelligence firm. The tremendous 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.
Developing regions such as LATAM, Middle East, Africa, and APAC boost the growth of industrial valves globally due to increased investment in infrastructure such as power plants, water supply lines, and sewage water treatment facilities. The utilization of smart valves is increasingly being adopted in North America and Europe because of their ability to control fugitive emissions which are required for compliance with environmental regulations.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The immense growth in the 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. However, patent violations and copies of the original by the local players would hamper the growth of the industrial valves market due to the copies being relatively cheaper.
A major trend in the industrial valve market is the use of robotics in handling complex and repetitive tasks such as replacing broken valves, which has remarkably reduced labor requirements. The use of control valves has helped in reducing fugitive emissions, while also reconditioning older valves rather than replacing them.
The industrial valves market has constant innovation taking place; for instance, the chemical sector has replaced generic valves with smart valves. Since the market is highly fragmented with the entry of global players, competition has increased and local players are adopting newer technologies to stay competitive.
- The material is the major cost driver of the valves, and it accounts for approximately 50–53 percent of the total cost.
- Emerging markets have high potential to grow due to huge investments in infrastructure, power, etc.
- The obstacles faced by new entrants in the industrial valves market will be huge investments, technical expertise, product offerings, distribution network, and gaining buyer confidence.
- Labor is the second-biggest contributor to the total price, and the labor costs will deteriorate as companies are moving to the emerging countries for manufacturing.
- Implementing standardization of valves in the industry results in cost savings of approximately 15–20 percent until 2025.
- Valves are purchased from ad-hoc suppliers for applications where the need of the valve is low. This offers a huge cost advantage with a moderate-quality parameter.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
Technical specifications and type of material of the valve have to be as per design mentioned in the contract. Products failing to comply will be returned to the supplier for rectification. For valves of high precision, which are critical for operation, a global manufacturer is an ideal fit. But for valves of low critical application, local/regional suppliers can be engaged at a competitive price point and quicker delivery.
The report also includes:
- Market Maturity
- Drivers and Constraints
- Industrial Valve Revenue Breakup by Valve Type and End-use Industry
- Regional Market Outlook
- Supply Outlook
- Global Supplier Capability
- Regional Supplier Capability
- Top Global Supplier Profiling
Cost and Pricing Analysis:
- Cost Structure
- Direct Materials: Future Trend and Impact on Buyer
- Key Success Factors in Procurement of Valves
Procurement Best Practices:
- Sourcing Models
- Comparative Analysis Pros and Cons
- Cross-industry Sourcing Model Adoption
- Pricing Models
- KPIs and SLAs
About Beroe Inc.:
Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of businesses across the globe.
Beroe leverages its deep domain expertise in 300 + categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.
To learn more about Beroe Inc, please visit https://www.beroeinc.com