COVID-19 to Impact Demand Growth of Industrial Valves amid Stringent Lockdowns and Record Low Oil Prices, Says Fact.MR
Published : 12 May 2020 Industry: Industrial Goods
The industrial valves market is foreseen to expand by ~1.4x, and is poised to reach a valuation of ~US$ 79 Bn by 2030-end, concludes a recently published report by Fact.MR. High consumption of oil & gas has been witnessed in the developed and developing regions. Thus, major exploration & production (E&P) companies are focusing on expanding their production facilities by building new processing plants and pipelines where industrial valves find high uptake. In regions such as North America, Europe, and Asia, major intra-country and inter-country pipeline projects are under development to meet the growing demand for oil & gas.
However, amid the COVID-19 pandemic, some pipelines projects are stalled. Six pipelines operators have reduced US$ 1.9 billion from their budgets, owing to record low oil prices and weakening demand. Players such as Noble Midstream Partners, Rattler Midstream, Targa Resources, EnLink Midstream, Oneok and Pembina Pipeline have made budget cuts in oil exploration, which represents an overall 30% of planned capital expenditure for new pipeline and storage projects in 2020. Thus, owing to fallen demand of oil & gas exploration and a reduction in overall project costs of pipeline infrastructure, the demand for industrial valves is set to reduce in 2020.
Key Takeaways of Global Industrial Valves Market
- Gate valves are projected to grow 1.4X through 2030 as compared to 2020, accounting for around 22% of the overall value opportunity in the global market by 2030 end.
- The cast steel segment is expected to create an absolute dollar opportunity of US$ 7.7 Bn during the forecast period.
- APEJ accounts for the highest share in the industrial valves market and is expected to grow 1.5x during the forecast period.
- The automatic function segment is foreseen to grow at the highest CAGR during the forecast period.
- The oil & gas sector is expected to account for 1/3rd absolute dollar opportunity as compared to global industrial valves.
“The COVID-19 pandemic has adversely affected pipeline operators in the industrial valves market as supply and demand cycles have been disrupted. However, once restrictions are lifted, a slow recovery rate is anticipated as demand for oil & gas will increase in developing countries, resulting in a positive uptake” says the Fact.MR analyst.
Prominent Players Focus on Strategic Acquisition & Geographic Expansion for Sustaining Growth
The report reveals some of the prominent market players, including General Electric Company, Emerson Electric, Watts Water Technologies, Weir Group, Alfa Laval, Curtiss-Wright, Circor International, and others. Prominent manufacturers are continuously focusing on strategic acquisition and geographic expansion in order to expand their business operations. For instance,
- In March 2019, the company acquired Tactical Communications Group (TCG), LLC, which specializes in design and development of software related to Tactical DataLink (TDL).
- In November 2018, Baker Hughes, a GE company, inaugurated a new steam test facility in Naples, Italy to focus on the scope and capacity of the plant, which includes a full range of consolidated safety valves and Masoneilan control valves.
Find More Valuable Insights on Industrial Valves Market
Fact.MR, in its new offering, brings to fore an unbiased analysis of the global industrial valves market, presenting historical demand data (2015-2019) and forecast statistics for the period, 2020-2030. The study divulges compelling insights on the industrial valves market based on valve type (check valve, gate, globe, ball, plug, butterfly, safety relief and other), valve material (cast steel, carbon steel, stainless steel, bronze, and other alloys ), function (manual, and automatic), and end use (oil & gas, chemical, water & wastewater treatment power plants, paper & pulp, and others) across seven major regions.
About the Industrial Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations of the highly seasoned industrial research team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over thousand reports and 1 million plus data points, the team has analyzed industrial goods sector across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.