The power industry is one of the largest markets for industrial valves worldwide and demand for these valves continues to grow steadily. The recently released report ‘Global Industrial Valves Market in Power Industry’ by TechNavio provides an overview of the industrial valve market in the power industry and forecasts significant growth areas, demand drivers, market trends and challenges to 2018.
According to the new report, industrial valves are used for a variety of applications within the power industry to control, direct, and regulate the flow and pressure of gases, liquids, and fluidised solids. Depending on application, electrically, pneumatically, or hydraulically operated valves may be used.
The main types of industrial valves used in the power industry include globe valves, gate valves, butterfly valves, ball valves, and industrial plug valves.
Together, these five products types accounted for 87 per cent of the global industrial valves market in the power industry in 2013 and are expected to account for a similar level in 2018.
The report found that the global industrial valves market in the power industry is one of the more steadily growing engineering markets. This market is dominated by the Americas, followed by the Asia Pacific (APAC) region and the Europe, Middle East, and Africa (EMEA) region.
In 2013, the Americas accounted for 41 per cent of the market, the APAC region for 31 per cent and the EMEA region for the remaining 28 per cent.
In the period to 2018, the market in the Americas is expected to grow at a rate of 3.8 per cent. While it will still be the largest market, its growth is expected to be slightly slower than that of the other two regions studied. Over the same period, the APAC market is expected to grow at a rate of 4.6 per cent, and the EMEA market is expected to grow at a rate of 4.2 per cent.
Worldwide, the market for industrial valves in the power industry is expected to grow at a steady rate over the period 2014-2018, posting a rate of 4.2 per cent.
Drivers to market growth
The global industrial valves market in the power industry has many growth drivers.
The key drivers identified as underlying the forecast growth up to 2018 included increased demand of industrial valves for gas turbines, growing demand of industrial valves from replacement activities, and an increase in investment in renewable energy sources.
These increases in demand will be due to growing industrialisation and rapid infrastructure development across the globe (and especially in developing countries), resulting in higher electricity demand and increases in power generation.
The challenges of a competitive market
Although the global industrial valves market in the power industry is witnessing a steady growth rate, it still faces some serious challenges.
These include lack of effective product differentiation, the need to comply with stringent government regulations, and an increased price
war among vendors.
Trends in the industrial valve market
The global industrial valves market in the power industry is witnessing several emerging trends that are expected to continue throughout the forecast period.
Key market trends include an increase in outsourcing of manufacturing activities to the APAC region, a steady transition from conventional valves to electrically actuated industrial valves, and increased numbers of mergers and acquisitions throughout the industry.
What will customers base buying decisions on?
In order for companies to survive in an increasingly competitive market, they must adapt their products and services to match what buyers are basing their product choices on.
Key buying criteria throughout the forecast period include customisation, maintenance and support, reliability and total cost of ownership.
The years ahead
The period between 2014-2018 will continue to be an exciting yet challenging time for vendors of industrial valves for the power industry. Those who make the most of the forecast market growth will be those who keep a close eye on the market and their customers needs and adapt accordingly.
More detailed information on the market, including the overall market value, is available in the full report, ‘Global Industrial Valves Market in Power Industry’, which can be purchased from TechNavio.
Visit www.technavio.com for more details.