Valve Market Lucrative Segment in the next few years as well
The global valve market earns a dominant share in revenues owing to applications across manufacturing and oil and gas industries. These sectors have either been hit drastically or have seen sizeable slowdown in the past few years. In the oil and gas industry, especially, most valve applications in the oil and gas industry presently are replacements of previously installed valves. The scenario has had a significant impact on the market’s development lately. However, applications across the food and beverages and wastewater management industries are leading to sustainable returns.
Transparency Market Research estimates that the global valves market will exhibit growth at a healthy pace in the next few years. The market was valued at US$71.21 bn in 2015 and is expected to reach US$92.65 bn in terms of revenue by 2020, expanding at a CAGR of 5.6% from 2016 to 2020. In terms of volume, the global valve market is expected to grow at a CAGR of 4.6% during the forecast period.
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Based on the type of material used to manufacture valves, the global valve market is segmented in the report into copper, plastic, stainless steel, carbon steel, and brass. Of these, the segment of stainless steel valves is the market’s leading contributor in terms of revenue. The segment occupied a share of nearly 54% in the global market in 2015 and is expected to remain a lucrative segment in the next few years as well.
Owing to these attributes, the demand for stainless steel valves is predicted to witness stable growth during the forecast period from 2016 to 2020. However, the segment is expected to lose promise to segments such as brass and carbon steel valves during the forecast period.
Extensive usage of brass valves for plumbing purposes in industrial and civil sectors, mainly due to their high durability and capability to withstand high temperature and pressure, is predicted to drive the market for brass valves. On the other hand, carbon steel is the most commonly used material in butterfly valves and globe valves. Increasing demand for butterfly valve and globe valve across industries such as pharmaceuticals, food processing, and chemicals is expected to boost the global demand for carbon steel valves.
Shale Gas Boom in U.S. to Lead to Promising Growth Opportunities
The global valve market is predominantly driven by Asia Pacific, both in terms of revenue and volume. Initiatives taken by the government in upgrading and expanding the reach of electrification across remote villages and cities in several countries in the region are anticipated to drive demand across the power generation sector in the coming years. Moreover, the rising usage of valves in pipelines for the delivery of raw/unprocessed gas and oil products to refining facilities across several parts of the region is also expected to boost the demand for a number of valve categories in the coming years.
The valve market in North America takes the second spot in the global valve market in terms of both revenue and volume. The market in North America is chiefly driven by the flourishing industrial sector in the U.S. The U.S. is also expected to have the most significant influence on the development of the North America market for valves throughout the forecast period. The boom in the shale gas industry in the U.S. in order to provide the country with a reliable domestic supply as well as the ability to sell the gas overseas will emerge as the primary factor responsible for the growing demand of valves during the forecast period.