The Petrochemical Industry Drives the Industrial Valves and Actuators Market
Release Date:
2020-12-11
The global industrial valves and actuators market for the oil and gas industry is the largest revenue driver. Consequently, the exploration of new oil and gas fields—coupled with increased investment—and the expansion of refineries and pipelines in key growth regions are likely to have a significant impact on market prospects. The market will also benefit from rising demand for automation and infrastructure modernization. According to Frost & Sullivan’s strategic analysis of the global industrial valves and actuators market, the market generated USD 1.837 billion in revenue in 2012 (compared with USD 1.765 billion in the 2011 base year), and is projected to reach USD 2.210 billion by 2016. Niranjan Paul, Associate Research Analyst for Industrial Automation and Process Control at Frost & Sullivan, notes: “Currently, major oil exploration activities are concentrated in Africa, South America, the Middle East, and Russia. These regions therefore represent a focal point for industrial valves and actuators manufacturers and offer sustained growth opportunities.” In the Middle East, Iraq is emerging as a key market for major oil companies. The country is also expected to spend nearly USD 27.0 billion on new power generation and transmission–distribution projects between 2012 and 2017. These trends underscore Iraq’s growing importance as a market for industrial valves and actuators. However, political uncertainty in North Africa and the Middle East is impacting the oil and gas industry. Moreover, sanctions imposed on Iran and Syria—key markets for oil, gas, and power-generation sectors—could restrain revenue growth for industrial valves and actuators manufacturers. In more developed regions such as North America and Europe, environmental legislation plays a pivotal role in shaping market dynamics. Here, stringent regulations may exert cross-industry effects across end-user sectors. Paul explains: “In the oil and gas sector, regulations aimed at reducing air pollution seek to curb emissions of volatile organic compounds (VOCs) that contribute to smog formation; accordingly, the design of process equipment—including valves and actuators—will help achieve reductions in plant emissions.” Even as leading industrial valves and actuators manufacturers capitalize on growth opportunities, their profit margins are under pressure due to price sensitivity across end-user industries. As a result, companies are compelled to adopt aggressive pricing strategies. “The market may see increasing demand for customized solutions tailored to specific end-user applications,” Paul adds. “Market participants must not only meet this demand but also address other critical customer needs, such as high-quality after-sales service and shorter delivery times.” The strategic analysis of the global industrial valves and actuators market is part of Frost & Sullivan’s Growth Partnership Services program for industrial automation and process control. Frost & Sullivan’s research offerings include the European control valve market, the North American control valve market, the Southeast Asia and Australia–New Zealand industrial control valve market, and the Middle East industrial valves and actuators market. All research services provide detailed market opportunity assessments and industry trend analyses, supported by extensive interviews with market participants, and are available through subscription.
The global industrial valves and actuators market for the oil and gas industry is the largest revenue driver. Consequently, the exploration of new oil and gas fields, coupled with increased investment in refining facilities and pipelines in key growth regions, could significantly influence market prospects. The market will also benefit from rising demand for automation and infrastructure modernization.
According to a strategic analysis of the global industrial valves and actuators market by Frost & Sullivan, the market generated revenue of US$1.837 billion in 2012 (compared with US$1.765 billion in the base year of 2011), and is projected to reach US$2.210 billion in 2016.
Niranjan Paul, Associate Research Analyst for Industrial Automation and Process Control at Frost & Sullivan, noted: “Currently, major oil exploration activities are concentrated in Africa, South America, the Middle East, and Russia. Consequently, these regions represent a key focus for industrial valve and actuator manufacturers, offering sustained growth opportunities.”
In the Middle East, Iraq is emerging as a major market for leading oil companies. The country is also projected to spend nearly US$27 billion on new power generation and transmission and distribution projects between 2012 and 2017. These trends underscore Iraq’s growing significance as a key market for industrial valves and actuators.
However, political uncertainty in North Africa and the Middle East is impacting the oil and gas industry. In particular, sanctions imposed on Iran and Syria—key markets for the oil, gas, and power-generation sectors—could dampen revenue for industrial valve and actuator manufacturers.
In more developed regions of North America and Europe, the market has played a significant role in shaping environmental legislation. In these areas, stringent regulations can have a cross-sectoral impact on end-user industries.
Paul explained, “In the oil and gas industry, regulations are in place with the goal of reducing air pollution by limiting emissions of volatile organic compounds (VOCs) that contribute to smog formation; the design of process equipment, such as valves and actuators, will help achieve reductions in plant emissions.”
Even as leading manufacturers of industrial valves and actuators capitalize on growth opportunities, they are seeing their margins squeezed due to price sensitivity across end-user industries. As a result, companies are being compelled to adopt aggressive pricing strategies.
“The market is seeing growing demand for customized industry-specific application solutions tailored to particular end users,” Paul said. “Market players must not only meet this demand but also address other critical customer needs, such as high-quality after-sales service and shorter delivery times.”
The strategic analysis of the global industrial valves and actuators market is part of Frost & Sullivan’s Growth Partnership Services program for industrial automation and process control. Frost & Sullivan’s research offerings encompass the control valve markets in Europe, North America, Southeast Asia, Australia and New Zealand, as well as the industrial control valve market in the Middle East, and the industrial valves and actuators market in the Middle East. Each research service includes a detailed assessment of market opportunities and industry trends, supported by extensive interviews with key market participants, and is available on a subscription basis.
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