Demand is forecast to rise 5.1% per year through 2017
Global demand for industrial valves is forecast to rise 5.1% per year through 2017 to $82.5 billion, according to World Industrial Valves, a new study from The Freedonia Group Inc., a Cleveland-based industry market research firm. Although growth will be healthy across the globe (spurred by recovery from the recent economic downturn), the drivers of growth will vary by region.
According to Freedonia analyst Michael Deneen, “Advances in developing areas such as China and India will result from ongoing industrialization, as investment in water infrastructure and electricity generation grows.”
In developed areas, continued advances in manufacturing output will provide growth in the process manufacturing market. Oil producing nations such as those in the Middle East will see gains due to rising production. In the US, demand in the oil and gas market will benefit from infrastructure construction and increased production due to shale development, as well as from the improved economy.
Process manufacturing will post strong gains in valve demand, driven by growing output, especially in the chemical industry. Process manufacturing output will grow in developing regions, reflecting rising standards of living. The need for more efficient manufacturing operations in developed nations, a byproduct of higher labor costs and competition from lower cost nations, will spur investment in new equipment, benefiting valves. Advances in valve demand in the water infrastructure market will result from two key factors: in developing nations, access to water supply and sanitation will be increased; in developed nations, aging water infrastructure will need repair and upgrade. Valve demand in the oil and gas market will benefit from increased oil and gas production, which will require additional investment in pipeline infrastructure. Other markets will benefit from rising construction and from growth in electricity generation.
Demand for automatic valves will outpace demand for conventional valves due to ongoing efforts by process manufacturers to improve operational efficiencies. The strongest gains will be registered in separately sold automatic actuators, which are used with standard valves to allow for automated valve functions and which are less expensive than automatic control and regulator valves with actuators pre-installed.
More like this
- U.S. Demand for Water Treatment Chemicals to Reach $6.7 Billion in 2017
- Global Demand for Activated Carbon to Rise, Report Says
- U.S. Demand for Water Treatment Equipment to Reach $13 Billion in 2017
- Global Demand for Water Treatment Chemicals to Exceed $30 Billion
- Water Treatment Equipment Demand Shows Growth in Developing Regions