Review And Outlook Of Global Control Valve Market

Introduced the changes in the global control valve market, pointed out how control valve providers cope with the financial crisis and the growth points of the control valve market.

In July 2008, David Clayton, a senior analyst at ARC Advisory Group, explained in the article "Control Valve Worldwide Outlook": Based on the rapid growth of the global control valve market in 2006 and 2007, it is predicted that the global control valve market will maintain a compound annual growth rate of 6% in the next five years. Based on the global control valve market sales of US$4.8 billion in 2007, the global control valve market is expected to exceed US$6.4 billion by 2012 (as shown below).

Global Control Valve Market Forecast Growth Chart

Unfortunately, in the first quarter of 2008, although developing countries and regions such as China, India and the Middle East, the markets dominated by the oil and gas industry all had a high demand for control valves, the revenue growth of control valve suppliers in the North American and European markets began to slow down.

In 2008, Mr. Clayton pointed out that although the current global control valve market has strong growth opportunities, challenges still exist. In many ways, control valve suppliers are facing the same opportunities and challenges as before. The strong growth of developing countries and regional markets provides control valve suppliers with an excellent opportunity to expand their business, but at the same time, how to establish a global supply and logistics system, how to develop new products and what new products to develop are all difficulties that control valve suppliers need to face and overcome. For example, many new petrochemical projects require large control valves that can withstand extreme temperature conditions and provide tight shut-off functions; and deep-sea oil operations require high-pressure control valves that can provide effective opening thrust or sufficient torque.

In addition, with the continuous improvement of the degree of automation of modern production processes, process parameters have become an important indicator for judging the efficiency, working conditions and economic performance of production processes. The role of control valves in continuous and discrete control, energy metering, trade settlement, storage and transportation systems is becoming increasingly prominent. The requirements for precise control, multi-function and intelligent control valves are also getting higher and higher.

A major highlight of the development of the automation industry in 2007 was the rise of wireless communication in industrial automation factories. The advantages of wireless communication technology, such as remote, mobile, and anytime, anywhere control, made the original wiring control look inferior. Therefore, control valve suppliers are actively developing DTMs (DigitalTV Monitor System) on the one hand, so that they can work with data-embedded diversified intelligent field devices designed based on the PAM (Pulse Amplitude Modulation) solution based on FDT (Formal Description Technique); on the other hand, control valve suppliers are considering vigorously developing wireless HART (Highway Addressable Remote Transducer) products.

In 2008, due to the strong growth of the control valve market in developing countries, control valve suppliers worked hard to expand their manufacturing capabilities and meet customer needs, and the control valve market continued to grow. In sharp contrast to 2008, due to the impact of the financial crisis, the number of control valve suppliers in 2009 dropped sharply and control valve orders decreased. In the third quarter of 2009, Mr. Clayton still optimistically estimated that the global control valve market is expected to pick up in 2011.

Affected by the current global economic recession, the development trend of the global control valve market has changed dramatically. In the past four years, those companies that are more aggressive and pursue new business have grown faster and benefited from the rapid growth of the market. Despite the economic recession, many control valve suppliers have once again found themselves in a market full of opportunities and less competition. Therefore, it is very important for control valve suppliers to go out and obtain new business, and it will be more important than ever to keep the existing user base.

In the past few years, the explosive growth of the control valve market has caused a sharp increase in the number of orders on hand for control valve suppliers, and increased production to meet market demand. In 2009, when the economy was in recession and shipments declined, control valve suppliers had a large backlog of inventory. Leading control valve suppliers will maintain a healthy inventory and digest the excess inventory as soon as possible in the growth of control valve sales and after-sales service orders. However, due to the inherent complexity of the sales chain and the long period of ordering, these backlogs are difficult to digest in a short period of time.

In the face of the world economic recession, Mr. Clayton emphasized that the oil and related industrial markets are still the growth point of control valves; developing economies are still the engine of growth in the global control valve market. Developing countries such as China, India and Brazil have also been affected by the global economic crisis, but their economic growth rate is still very high compared with other countries, and they still maintain the level of economic growth in 2008. Developing economies are still the main growth driver of the global control valve market. Emerging economies such as the BRICS (Brazil, Russia, India and China), as well as the Middle East and Eastern Europe, will continue to support the continuous growth of the control valve market.

The global control valve market needs to find demand from the growing global consumption, which depends on a healthy capital investment and credit environment, a stable market return and intensive production needs. Only in this way can control valve suppliers cope with the upcoming rapid growth of energy demand and consumption demand of control valve markets around the world.