According to new analysis from Frost & Sullivan, the increase in oil exploration activities, investments in new refineries, and modernization of existing facilities will spur the uptake of valves and actuators, particularly in emerging markets such as Africa and Latin America.
Demand from the offshore oil and gas industry in Latin America, in particular, is expected to fuel the valves and actuators market. In addition to the demand form the emerging economies, control valve manufacturers will find growth opportunities in North America and Europe due to end-user preference for greater process automation.
The report, ‘Strategic Analysis of the Global Industrial Valves and Actuators Market’, finds that the market earned revenues of US$ 19.51 billion in 2013 and estimated that this will reach US$ 25.95 billion in 2018. The study covers the oil and gas, power generation, chemical processing, mining and metallurgy, and water and wastewater end user industries.
Frost & Sullivan Industrial Automation and Process Control Research Analyst Niranjan Paul commented: “The water and wastewater industry will offer significant growth potential for valve and actuator manufacturers in Asia Pacific, Africa and Latin America. Due to burgeoning population and rapid urbanization in these regions, water scarcity and the need to provide purified and portable water for human consumption have led to the setting up of desalination plants, boosting the use of valves and actuators”.
However, Frost & Sullivan holds that despite this demand, valve and actuator manufacturers are likely to witness a loss of potential revenues due to the political situation in countries such as Iran, Sudan and Syria. In addition, the global financial downturn has compelled end users to defer projects and focus on the maintenance of existing equipment rather than the purchase of new valves and actuators.
The adoption of aggressive pricing strategies in Asia Pacific will also reduce the sale of new valves. Vendors must enhance their aftermarket capability to sustain profits as well as meet wide ranging consumer requirements, according to Frost & Sullivan.
Paul said: “Valve and actuator manufacturers need to invest in R&D to deliver a comprehensive solution complete with wireless monitoring and advanced valve condition monitoring capabilities. With subsea exploration in Europe and Latin America projected to rise, widening product portfolios to include double expanding gate valves will help vendors appeal to a larger consumer base in this high potential market”.
Adapted from a press release by Emma McAleavey.
Read the article online at: https://www.oilfieldtechnology.com/exploration/09092014/valve-and-actuator-market-report-1254/