Valves Market Size

Valves Market Analysis

The global valves market was valued at USD 79.9 billion in the previous year and is expected to register a CAGR of 5.39%, reaching USD 108.2 billion by the next five years.

• A valve controls the flow and pressure within a system or process. It forms an essential piping system component that conveys liquids, gases, vapors, slurries, etc. Hence, the growing investment in infrastructure development and the automation of industries are driving the growth of the studied market.
• Rising investments in pipeline infrastructure in the oil and gas sector are expected to boost the installation of industrial valves. Additionally, many developing countries are witnessing increased water supply and sanitation projects by governments, which will likely propel the sales of industrial valves for domestic and agricultural applications. For instance, in May 2022, China announced plans to expand the region's natural gas pipeline grids over the next four years, which would enable it to transport greater volumes to more clients and utilities. Such developments will enhance the demand for industrial valves in the country.
• Furthermore, the growth in investments made by various countries to develop the water and wastewater infrastructure is another major factor driving the studied market's growth, as valves are widely used in water and wastewater plants and distribution pipelines. For instance, in 2022, the Asian Infrastructure Investment Bank (AIIB) approved two major projects: the Dam Rehabilitation and Improvement Project in India and the Bukhara Region Water Supply and Sewerage Project, Phase II in Uzbekistan.
• Many companies are leveraging emerging technologies such as artificial intelligence (AI) and industrial Internet of Things (IIoT) to minimize unplanned downtime and other unfavorable incidents due to valve failures. Valves equipped with sensors are also being increasingly adopted to reduce failures and overall maintenance costs. Adoption of these advanced values is expected to further boost the market over the forecast period.
• The global valve market has many players offering a broad range of solutions targeting applications across various end-user industries. This significantly drives competition among the vendors, encouraging them to develop innovative solutions and adopt unique business strategies to expand their market presence. Hence, the growing market competitiveness is anticipated to drive the studied market's growth further during the forecast period.
• However, the market players need to comply with the various certifications and policies of different regions with respect to valve manufacturing, resulting in diversity in product specifications due to the widespread application of valves in several end-user industries. This acts as a restraint for market growth as the companies have to amend the same product according to the regional policies, making it difficult for them to achieve an ideal cost of installation.
• The COVID-19 pandemic had a negative impact on the oil and gas industry, with oil prices slashing drastically. The decline in the demand for oil and gas due to various restrictions imposed by governments worldwide created a huge gap between supply and demand. Besides oil and gas, water and wastewater treatment and energy and power industries are also among the key end-users of valves. All these industries also witnessed reduced demand due to the global pandemic. However, with the restrictions lifted from almost everywhere, these industries have started recovering gradually, which will accelerate the market growth going forward during the forecast period.