Oil and Gas Drives Growth in Valves and Actuator Market.
VALVES which are used to control pressure, temperature and level ofliquid are called control valves. These are widely used in industrieswhere the flow and level are required to be maintained. Control valvesopen or close responding to the process variable defined for itsoperation by means of electric and pneumatic actuators.The major factorswhich are driving the control valves market includes: growing investmentin the oil and gas sector. This automatically creates demand for controlvalves, as they find application right from the extraction of crude oiland gas till it reaches the end customers via refinery and oil terminalsand depots. Emerging economies like China and India are also increasingtheir hydrocarbon investment which is again boosting the demand forcontrol valves.But, despite the growing demand for control valvesglobally, the challenge is of setting up an efficient system oflogistics and supply. Another challenge faced by the global valvesmanufacturing companies is to evolve with time and cope up with changingrequirements of their clients by innovating control valves. Immenseopportunities exist in emerging economies like India and China which areboosting their investment in hydrocarbons in order to cater to thegrowing demand for fuel.The global control valves market was estimatedto be close to $6.34 billion in 2012 which is expected to reach a levelof $10 billion by 2018, at a compound annual growth rate (CAGR) of 6.02per cent, from 2013 to 2018 owing to strong demand of control valvesused in petroleum, petrochemicals and chemicals industries. The NorthAmerica and Europe control valves markets are considered as maturemarket and so they are expected to grow at a low rate. Middle East beingone of the major supplier and producer of oil and gas will drive themarket for control valves in the next decade. Another report says thatthe global industrial valves and actuators market is forecasted to growat a CAGR of 5.06 per cent over the period 2014 to 2018. And one of themajor drivers in the market is increased demand from the oil and gasindustry. The increased growth of the global oil and gas industry hasled to a growing demand for industrial valves.According to the GlobalIndustrial Valve and Actuator Market 2014-2018 report, industrial valvesand actuators are devices that are used to control, direct and regulatethe flow of fluids such as gases, liquids and fluidised solids. Thesevalves are widely used in the industrial production process by severalprocess industries in order to control the flow of fluids or gases. Theregulation or the control of the valve can be undertaken eitherphysically or automatically. There are different types of valvesaccording to the needs and demands of the production process. Valvesincrease the operational efficiencies of the industrial productionprocess and also enhance safety measures in process industries.LOW-COSTVALVES Industrial valves are devices that regulate, control or directthe flow of any medium passing through it. Actuators are used for theautomation of valves to ensure that the pressure and flow control are inline with the set parameters. Their functions include automatic controlof valve position, safety, diagnosis and process control. The industrialvalves and actuators market is set to grow in the ensuing years withincrease in industrialisation activity across the globe. Key drivers forthe market's growth are automation in the modernisation andexpansion of existing facilities, increasing demand for flow controlequipment and surging requirement for resources such as water andenergy. However, the increasing competition among vendors could impose arestraint for the market's growth.Expanding the end use applicationof industrial valves and actuators could provide a significant growthopportunity for the market. For example, a trend in the energy sector isseen towards the use of shale gas as an energy source this would lead toan increase in the demand for industrial valves and actuators. Liquefiednatural gas, biotechnology, desalination and ethanol are some promisingmarkets for industrial valves and actuators.The industrial valves andactuators market can be segmented on the basis of product type, end-useand geography. The market segmentation on the basis of product typeincludes self acting valves, quarter turn valves, control valves, multiturn vales, and actuators (pneumatic, hydraulic or electric). End usersfor industrial valves and actuators are in oil and gas refineries, powergeneration plants, nuclear process plants, chemical and petrochemicalindustries, pulp and paper industries, metal and mining industries,pipelines, water and wastewater industries among others. Energyapplications account for a majority of the industrial valves andactuators market followed by water and wastewater treatment industries.The global industrial valves and actuators market is witnessing theadoption of quarter-turn valves. In quarter-turn valves, the closureshaft needs to be rotated to 90 degrees. The closure shaft is used forquick opening or closing of valves. Quarter-turn valves are used in thewater industry to control and regulate the flow of water throughpipelines. The growth of the water industry in the APAC region has ledto increased demand for quarter-turn valves from this region. Increaseduse of such valves in the water industry and across other industriessuch as oil and gas, power, pharmaceutical, food and beverages, pulp andpaper, and refinery has led to high demand for quarter-turnvalves.Geographical segmentation includes regions such as North America,Europe, Asia Pacific and Rest of the World. Europe and North Americahave a large base for industrial valves and actuators market. The marketis mature in the US, Japan and Western Europe as they aretechnologically advanced regions. Asia Pacific is expected to witnesshighest growth over the forecast period owing to the rising expansionand automation of industrial activity. High demand for resources fromregions such as India and China is expected to drive the need forautomating process control in order to provide high throughput. Keymarket players include, Flowserve, Emerson Electric, Tyco International,Kitz Corp.The report recognises the following companies as the keyplayers in the global industrial valve and actuator market: CameronInternational, Emerson Electric, Flowserve, Pentair, Alfa Laval, AVKGroup, Crane Co, Curtiss Wright, GE, Honeywell International, IMI, KitzCorp, KSB Group, Neway Valve (Suzhou), Rotork, Valvitalia Group, Velan,Weir Group.PROJECTS BOOST GROWTH Meanwhile, global purchase of petroleumequipment is driving Chinese valve devices to the overseas market, saysanother report. The trend in the industrial valves and actuators marketshows a growing awareness to bring reliability and quality within theoverall framework of technology upgradation that is driving upprices.The competition in global valve manufacturing enterprises isfierce. There is no monopoly till now. West European valve manufactureenterprises, eg Germany, the UK and France take up 40 per cent globalmarket share while the production and export of valves in Asia-Pacificregion mainly concentrate in India, China and Japan. Valve products madein Japan are mainly high-end while those made in India and China arelow-end.To survive in the global competition and lower the cost, manyworld famous valve manufacturers transfer their factories to China,India, Korea and Middle Europe from North America, Europe andJapan.Currently, China's valve manufacturing industry can provideabout 12 categories with over 3,000 models of products in over 4,000specifications. The parameter performance ranges from vacuum valve toultra high pressure valve in 600 Mpa and the temperature ranges from low-196-deg C to high 570-deg C. Major products can basically fit thedomestic market demand. With the improvement in complete set ratio,complete set level and ability, the industry has founded a base.SinceChina's reform and opening-up, China's valve industry has fastdeveloped to be the largest manufacturer in the globe. In 2012, theoutput volume of valves in China reached 7.213 million tonnes. The CAGRof the output volume in 2002-2012 was 25.2 per cent. In 2012, the grossoutput value of the industry exceeded CNY 210 billion ($34.20 billion).In 2012, there were over 1,500 state-owned valve enterprises with annualsales revenue of CNY 20 million ($3.2 million). Meanwhile, there arethousands of small-scale enterprises and household workshops.Currently,about 50 per cent of global valve parts are purchased from China. Chinahas been the largest exporter of valves.Global purchase of petroleumequipment drives Chinese valve devices to the overseas market. Priceadvantage is one major factor attracting foreign buyers; besides, thedelivery advantage is another factor. For instance, the delivery ofChinese valves is about 6 to 8 weeks while that of European valves is aslong as 6 to 24 weeks. Chinese factories can further shorten thedelivery.In China, some ordinary valve product market has beensaturated, which hinder the development of medium to small scaleenterprises. Even for those products with high technology contents, thecompetition in the global market is also fierce. Heat valve, environmentprotection valve, building valve, etc. can be found on China market.However, the products are still on low-end level. The industryconcentration rate of China valve market is still low. Qualities ofdifferent products are not the same. The overall technology level ofChina valve industry still lag behind that of developed countries'.Domestic enterprises lack independent intellectual property rights andcore technology, which leads failure in global high-end market. High-enddemand is satisfied by import. In 2012, the import value of valves inChina exceeded $6 billion.With the economic development, demand forvalves in China is still growing. On the whole, the prospect of Chinavalve industry is good. In the next two to three years, China may exceedthe US to be the largest valve market in the world.Although the labourcost is increasing and core technical talents is scarce, the largemarket potential provides opportunities for foreign capitals in Chinavalve market. Copyright 2012 www.tradearabia.com Copyright 2014 Al Hilal Publishing and Marketing Group Provided bySyndiGate Media Inc. ( Syndigate.info ).