August 27, 2002 -- The world market for industrial valves could grow from $43 billion in 2002 to $53 billion in 2006. This is the most recent forecast in the continually updated online Valves: World Markets published by the McIlvaine Company.
This solid growth is a result of the usage of valves in a wide range of industries. Some of these industries such as semiconductor are volatile. Others such as water and wastewater are steady.
Some such as biotechnology and desalination are double digit annual growth segments. The market for automatic regulation and control valves will grow from just over $10 billion in 2002 to $13 billion in 2006. This segment holds promise of more rapid long-term growth due to the concept of "smart" valves.
The value of a valve is enhanced by the ability to deliver information about valve performance and condition. Manufacturers of valves have seized this opportunity and through merger and development are acquiring strength in electronic controls and information technology software.
The Petroleum industry, including the upstream oil and gas recovery and the downstream refining, represents the largest single application for valves. As such the Middle East remains an important market.
The chemical industry is the next largest segment. In 2006 the U.S. will remain the largest market for valves for chemical applications.
The top 10 chemical valve purchasers in 2006 are ranked as follows:
1. United States
2. Japan
3. Germany
4. China
5. United Kingdom
6. France
7. South Korea
8. Italy
9. Taiwan
10. Canada
Power represents the third largest market. Few valves are required in single cycle gas turbines. More are required for combined cycle gas turbines. A coal-fired plant requires four times as many valves as a combined cycle plant. Since China and the U.S. have the most coal-fired projects in development, these are the largest prospects for power plant valves. Valve replacement is also a big opportunity.
The U.S. with one-third of the worlds' coal-fired plant capacity is the largest market for replacement valves.
The market leader positions in the industry changed considerably with the acquisition of Invensys Flow Control by Flowserve. The combination is now the second largest supplier with a 4 % market share. This compares to a 6% share for the leader Tyco. Emerson with 3% is in the third position.
The industry is very splintered with more than 1,000 companies carving out niches. Some of these niches are product oriented and others are industry oriented. Even the largest valve manufacturers have uneven industry penetration. The report predicts further consolidation along industry, geographical, and product lines.
With the large number of industries served by valve manufacturers and the many factors impacting the market, the bases for forecasting future revenues are constantly changing. The new online format allows for continuos updating and display of forecasts based on the latest developments.
For more information on Valves: World Markets click (http://www.mcilvainecompany.com/water.html#N028) or contact: McIlvaine Company 2970 Maria Avenue Northbrook, IL 60062 Tel: 847 272 0010 Fax: 847 272 9673 E-mail: [email protected]
