The world market for industrial valves will rise to $51 billion in 2005 from just over $41 billion in 2001. The oil and gas sector is the largest. This will grow from $11 billion in 2001 to $13 billion in 2005. These are conclusions reached in the new McIlvaine continuously updated market report, Valves: World Market. The second largest sector is power followed by chemical, refining, municipal water and municipal wastewater.
Automatic regulation and control valves are the largest product segment with sales projected to reach $12 billion in 2005. Gate and Globe valve sales will exceed $9 billion while Ball valve sales in 2005 will be just under $7 billion. Three other categories (butterfly, industrial plug and miscellaneous) comprise the balance of the market.
Tyco is the largest valve manufacturer with a 6 percent market share followed by Emerson, Invensys, Kitz, Dresser and then an additional four companies who have at least a 1 percent market share. The market is fragmented with more than 1,000 companies participating. Some have geographic niches. Others have product niches such as slurry gate valves. Still others are focused on specific industries.
The forecasts include both new equipment and after market sales. The forecasts are defined as the aggregate of the revenues of the world's valve companies. Since valve companies are acquiring valve repair companies, the forecasts include a larger perecentage of valve repair in the future.
The largest single market opportunity is new power generation in the U.S. In the 1990s new generation equipment was primary single cycle gas turbines with few valves. Today billions of dollars are being allocated for combined cycle plants, each of which requires a sizable investment in valves. A significant number of coal-fired plants are also in the planning and construction stage. Valve use in these plants is three times greater (per MW) than in a combined cycle plant.