Market Trends of Valves Industry
Oil and Gas Vertical Accounts for a Major Market Share
- Many oil and gas operations, such as refining and distribution, rely on pipeline systems. Infrastructure and trustworthy control systems are, therefore, crucial in the business. Oil and gas valves are essential to ensure the safety of the industrial operations of pipelines.
- As an important part of any piping system, valves can be used to control flow rates, isolate and protect equipment, and guide and direct the refining process of crude oil. For instance, gate valves, which are linear motion devices used to open and close the flow of fluid, are commonly used in many piping and pipeline applications.
- With the oil and gas industry expanding owing to a growing demand for petroleum products, vendors operating in the market are launching innovative solutions, targeting applications of the oil & gas industry. For instance, in February 2022, CIRCOR International, Inc. launched its new CIR 3100 control valve. According to the company, the valve is designed for both low and high-pressure drop services and severe applications, including upstream, midstream, and downstream oil and gas, processing, and power generation industries, as well as the maritime and renewables sectors.
- In recent years, the increase in oil and gas exploration and production (E&P) activities is a major trend responsible for driving market growth. Besides, many countries are making heavy investments in drilling activities to tap unconventional resources, creating a positive outlook for the global valves market. For instance, the pace of oil and gas drilling in Canada in 2022 is expected to exceed the pre-pandemic levels. As per the Canadian Association of Energy Contractors, the number of oil and gas wells to be drilled in 2022 is forecasted to rise by 27% to 6,457, which is the highest since 2018.
- Furthermore, the growing demand for oil & gas is driving investment in oil and gas pipeline infrastructure, which in turn is creating opportunities in the studied market. For instance, according to the Global Energy Monitor organization, the East Asian region leads the chart with an estimated investment in under development oil & natural gas pipeline of USD 99.5 billion.
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Asia Pacific Market to Grow Significantly
- Due to the growing development in manufacturing and R&D activities in various industries across the Asia Pacific countries, the region holds a high market share. Further, the rising number of initiatives taken to ensure the safety of the workers in industries such as chemicals and oil and gas also support the market growth in the region.
- India is one of the fastest-growing countries in manufacturing sectors and machinery, creating a significant demand for industrial valves. The Indian government provides benefits to companies setting up manufacturing units. It has also outlined various policies to boost the manufacturing sector. For instance, the Indian government has outlined a plan to take the value of its manufactured goods exports to USD 1 trillion by 2030.
- Considering the growth potential, many vendors are expanding their presence in India. For instance, in February 2022, Emerson launched a new integrated manufacturing facility in Chennai, India, to serve the company's local and global customers. This facility will manufacture fluid control and pneumatics products, including solenoid valves and pneumatic valves, among others.
- Furthermore, China continues to account for a significant market share due to the growing industrial activities across the region and the rise in the number of manufacturing plants for oil and gas, chemical, and water, among others. This has increased the demand for industrial valves that can handle high pressure. For instance, in April 2022, SUEZ was awarded a 30-year build-and-operate contract for an industrial wastewater treatment plant in Changshu, China, through a local joint venture. The SUEZ joint venture is responsible for designing, constructing, and operating the wastewater treatment plant, which is expected to be commissioned in 2024.
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