Africa to lead global valves, actuators market

In today's scenario, increasing demand from various process industries, new government regulations on emission control standards, and the growing need for resources such as water and power will support steady and long-term growth of global valves market. Rising demand for resources and the increasing investments in key growing economies will have a positive impact on the growth of the market. In addition, the increase in oil exploration activities, investments in new refineries, and modernization of existing facilities will increase the uptake of valves and actuators, particularly in emerging markets such as Africa. The key growth driver for the valves industry is increased oil and gas activity.

 

Upgrading and capacity expansion investments are expected to contribute to a significant demand for valves particularly in Russia, the Middle East, and African countries. Due to end-user preference for greater process automation, North America and Europe are expected to find growth opportunities in control valves manufacturing.

 

Emerging trends in critical industries 

Valves are a critical component of multiple processes across industries. Oil and gas, power generation, and water and wastewater industries are the key end-user segments that drive demand for valves. Midstream infrastructure being a major part of gas transport, replacement of old valves with efficient ones will boost the sale of valves. Another major industry that supports the increasing population and urbanization across regions is the water and wastewater industry. There is a global demand for valves in the power generation industry; with renewable sources of energy gaining rapidly. There are niche applications for valves in renewable energy as opposed to traditional sources of energy.

 

Pricing influence purchase decision

Industrial valves market is highly price sensitive. Therefore, valve manufacturers are facing increased pressure on their margins. The initial cost of valves is a key factor that influences the purchasing decision of end users involved in industries such as water and wastewater. Price sensitivity is less in O&G and power generation industries where reliability and safety are critical. However, end users in Europe and North America, specifically those that operate in O&G and power, are unlikely to switch to low-cost valve manufacturers.

 

Focus towards product differentiation

With ever-changing end-user requirements, the biggest challenge for the market is the ability of suppliers to meet the current end users' specific needs, which include energy efficient, green, and highly reliable products. Main suppliers focus on product differentiation in terms of technology, aftermarket service, and reliability that are key to developing strong relationships with end users and arming suppliers with a competitive edge. Large valves manufacturers globally are investing heavily in R&D—with a strong focus on providing complete valve automation solution, with wireless monitoring and advances in valve conditioning and monitoring capabilities.

 

Conclusion

Global valves and actuators market has a positive outlook for the future, with opportunities in oil and gas and related industries. Demand for valves is expected to continue to increase as few key process industries such as O&G move towards process automation to better manage operation costs, reduce downtime, and increase equipment intelligence. Furthermore, the heightened interest in plant automation to reduce downtime and boost productivity is contributing to market growth.