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Anne Cunningham - 13 August 2015

The valve industry in reports: a synopsis

About the author

Ms Anne Cunningham
Anne Cunningham is a freelance member of Valve World magazine's editorial team and owner of Cunningham Text & Translation where she works as a text writer, (online) news editor and translator. Raised bilingual, she is experienced in writing about the process industries in both English and Dutch.
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Following the valve industry and reading up on innovations and solutions means I also look into all the industry reports that come out. This week was one of those weeks that I had some time to do this and instead of reading up on them for my own information, I decided to write and share with you a synopsis on several reports to see where the industry will be taking us the next few years.

The latest report I came across is by Research and Markets, a market research store that just recently added the "Global Industrial Valves Market in Oil and Gas Industry 2015-2019" report to their offering. According to their report the global industrial valves market in the oil and gas industry will grow at a compound annual growth rate of 5.30% over the period 2014-2019. The report covers the present scenario and the growth prospects of the global industrial valves market in the oil and gas industry for 2015-2019. To calculate the market size, the report covers the revenue generated from valves sold in the oil and gas industry. Research and Markets believe that, “oil and gas companies are automating production processes to reduce downtime and boost operational efficiency. One of the key market trends is the replacement of manually operated valves with fully automated isolation and control valves, which are interconnected to a monitoring and operating system. This should stimulate the demand for automated valves, actuators, and other control accessories.” This has of course been going on for a while now, but I agree that for the coming years the demand for automated valves will grow.

Earlier this year, published a 176 page report called “Industrial Valves and Actuators Market Research Report 2015”. This report delves into “the world's major regional market conditions of the industrial valves and actuators industry.” The report covers regions such as North American, Europe and Asia, and focuses on countries such as United States, Germany, Japan, and China. It also includes basic information on valves and actuators and clarifies definitions, classifications, applications, and an industry chain overview. The report is concluded with a new project SWOT analysis, an investment feasibility analysis, and an investment return analysis, making it more interesting for venture capitalists, and less of interest for industry specialists.

Besides the international reports there are of course also more pinpointed reports. TechSci Research, for example, released a report on the growing demand for industrial valves in the Indian oil and gas sector. The report, “India Industrial Valves Market Forecast and Opportunities, 2020”, mentions that the growing demand for industrial valves in the power and oil and gas processing sectors have been driving the sales of industrial valves in the country. TechSci Research expects that because the Indian government is investing significantly in the country's oil and gas pipeline infrastructure development the demand for the installation of valves over the forecast period will grow significantly. The market in India is also moving towards significant consolidation on account of rising merger and acquisition activities in the country, according to the report.

In another example, IBIS World warns America that the pressure is on: “While imports threaten industry operators, increased specialization will foster growth.” In this report “Valve Manufacturing in the US: Market Research Report” you will find detailed industry analysis, trends, and research. Intensifying competition from foreign companies working under less regulation and with lower labor costs, will pose a threat to the industry in the coming five years, according to IBIS World’s report. A well-known and often discussed topic within the industry.

So basically what they are saying is: The valve industry has been doing okay, Automated valves and actuators will be the future, Western manufacturers face ongoing challenges from countries with cheaper labor, A lot of old plants need updating and old systems will be replaced with new, modern systems that need new valves. These are all ongoing and logical industry developments and it looks as if the industry is forecast to continue as is at the moment with no major new challenges and steady market growth assured. Looks good to me!

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