Control valves are fluid control systems that regulate the flow of fluids automatically through a signal controller. The vast adoption of control valves across various industries is anticipated to propel the market growth throughout the forecast period.
Control Valve Market, Forecasts From 2019-2025, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
The above figure represents the market size of the control valve market which shows a healthy growth over the course of the next five years. The globally rising energy consumption has led to a dramatic increase in demand due to the constantly growing population along with rapid industrialization and urbanization across the developing economies of the globe. Also, the rising investments in renewable energy is one of the key factors that is expected to propel the opportunities for the key players of the market to invest and tap the growing potential in the next five years.
Additionally, the growing investments in nuclear power plants is also anticipated to amplify the demand for control valves, thus positively impacting the market growth during the coming years. The growth of the processing industry has also led to rapid investments in the setup of new industries is also expected to drive the demand for control valves in various developing economies due to the rapid industrialization and the booming adoption of automation solutions across these industries. The market is also poised to grow on account of the rapid participation by the key players operating in the market majorly in the form of partnerships and acquisitions. Companies are also investing heavily in R&D to develop and launch the latest and customized solutions to cater to the growing requirements across different industry verticals. Thus, investments by major players to gain a competitive edge in the market over the other players further shows the potential of the control valve market to grow throughout the forecast period.
The Investments in Renewable Energy Expected to Drive the Demand
One of the key factors expected to propel the demand for control valves is the increasing investments in renewable power projects. The rising prices of fossil fuels along with several government initiatives and programs to curb the carbon emissions has led to increased investments by governments of several countries to invest in renewable energy projects. Heavy dependence on fossil fuels in the past has led to overall environmental degradation. As a result, governments and corporations across the world are investing to exploit the potential offered by renewable sources of energy, i.e. wind, solar, and hydroelectric energy among others. Growing investment in the setting up of renewable energy power plants coupled with favorable government policies is poised to create significant business opportunities for the manufacturers over the next five years. Numerous government policies aimed towards the promotion of renewable energy has also led to an upsurge in the adoption of across various countries. For instance, the rooftop scheme by the Solar Energy Corporation of India launched a tender that offered a 30% subsidy to the residential sector, private NPO’s, educational organizations, and health institutions. This tender is an initiative for generating momentum and achieving the target of 40GW of rooftop solar power generation by 2022. Also, government schemes to minimize carbon emissions also play a significant role in fuelling investments in the renewable sector. For example, June 2019, the U.K Government, announced a statutory instrument to amend the Climate Change Act 2008, which includes reduction of carbon emissions by 80% till 2050, which in turn is projected to augment the investments in several renewable energy projects, thereby playing a significant role in shaping up the control valve market growth.
The control valve market has been segmented into valve type, material, size, industry vertical, and geography. Based on type, the market has been segmented into linear valves and rotary valves. By material, the segmentation of the market has been done into steel, iron, and others. Based on the size, the market is distributed into less than 2”, 2” to 8”, and above 8”. By industry vertical, the market has been segmented into oil and gas, water and wastewater, food and beverages, energy and power, and others. Geographically, the global market distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
North America to Hold a Significant Share
The North American region is expected to hold a substantial market share throughout the forecast period due to the presence of well-established industries in countries like the United States and Canada. Furthermore, the early technology adoption and the presence of key market players in the region also supplementing the significant share of the North American region throughout the forecast period. The APAC region is expected to show robust growth opportunities on account of the booming industrial sector in the major developing economies as well as rapid urbanization in countries like India and China. Also, the increasing focus towards automation across the industries is also bolstering the market growth in the region during the next five years. This has further led to an increased electricity consumption throughout the region which can be stated by the fact that in the Asia Pacific region the consumption of electricity reached 10,991 TWh by 2017 from 7,693 TWh in the year 2010.
Electricity Consumption, in TWH, Asia Pacific, From 2010-2017