Sales of industrial valves will exceed $53
billion in 2012, according to the latest
updates in the McIlvaine report titled
Industrial Valves: World Markets. The oil and gas
sector will be the largest purchaser with expenditures
of $8.7 billion.
The power industry will be the second largest
purchaser with purchases exceeding $7.2 billion.
The bulk of this expenditure will be for coalfired
power plants. Gas turbine and nuclear
power plant operators will also be major purchasers.
Operators of solar, wind, geothermal
and hydropower plants will not be significant purchasers.
Special materials are required for the chemical,
food, and pharmaceutical industries due to
sanitary or corrosion concerns. Mining, iron and
steel and wastewater include many applications
where abrasion resistance is a requirement.
Municipalities will spend $7.6 billion for valves
for water and wastewater treatment plants.
Much of this investment will be made in Asia
where the infrastructure needs are severe. Asia
will also be the leading purchaser of valves for
power and electronics.
The Middle East is a fast growing region relative
to valves for refining. It has special needs for
combination desalination and power plants.Regions
The world market for valves used by industry will
grow to $65 billion per year in 2017 against $51
billion in 2011, adding more than $10 billion to
current annual sales, according to the latest forecast
by the McIlvaine Company.
INDUSTRIAL VALVE SEGMENTS ($ MILLION)
|Iron & Steel
|Oil & Gas
|Pulp & Paper
East Asia will account for more than 30 per
cent of the market in 2017. The growth in this
region will be driven mostly by new infrastructure
and heavy industrial spending. More power
plants will be built in this region in the next five
years than in the rest of the world combined.
The investment in municipal wastewater treatment
and drinking water facilities in East Asia will
also outstrip the other regions. The region will
dominate the production of semiconductor
chips, flat panels, solar voltaic cells and other
devices requiring high performance valves for
ultra pure water.
The growth in NAFTA will be led by the non-conventional
oil and gas sector. Pennsylvania,
Texas and other states in the West will expand
their production of gas and oil from shale. This
will generate very substantial investments
Western Europe will be a slow growth market
characteristic by a large percentage of replacement
valves for existing plants as opposed
to valves for new plants. Eastern Europe will
reflect growth in expenditures to meet environmental
regulations required for European Union
Middle East expenditures will rise as the region
increasingly becomes a supplier of refined
rather than raw products. Valve sales in this
region will also be boosted by the desalination
The ocean will play a role in several ways. New
regulations for ballast water treatment and
scrubbing of vessel stack emissions will boost
the sales of valves for existing and new vessels.
Expanded production of oil and gas from subsea
sources will require large and expensive valves.
In a previous forecast, the McIlvaine Company
notes that many European valve manufacturers
are rapidly increasing their sales in Asia. So
while European consumption is going to rise
slowly, European production and exports will
rise at a greater rate. Total sales of European
valve manufacturers will rise at an even higher
rate to reflect revenues from new manufacturing
facilities in Asia.
The situation in the Americas mirrors that of
Europe only with slightly higher numbers. US
valve manufacturers are gaining a strong
foothold in the power, pharmaceutical, chemical
and other high-tech industries in Asia.
China is transitioning from a manufacturer of
low technology valves to a range of high and
medium technology products. The growth in the
Chinese nuclear industry is spurring the development
of high technology valves in this sector.
The large number of supercritical coal-fired boilers
under planning and construction is also a
boon to the high-tech valve manufacturers.
China is a leader in construction of solar panel
and semiconductor facilities. These facilities are
purchasing large numbers of small but expensive
Asia leads the world in construction of new
municipal wastewater and drinking water plants.
These plants require a range of valve types and
quality. In the US, the growth markets are shale
gas and biofuels. The oil sands market in Canada
is large and growing.
The industry continues to globalise. For example:
The Velan, Inc. German sales distribution
subsidiary, Velan GmbH, has booked an order of
more than $20 million to supply valves to a Russian
boiler manufacturer for three 660-MW units
of the Barh supercritical coal-fired power plant in
India. The customer in India is NTPC Ltd, the
largest state-owned power-generating company
in India. So a North American company books
an order through its German subsidiary for a
Russian customer who will in turn install the
valves in India.
DEMAND BY REGIONS ($ Million)
|South & Central America