As per the International Association of Oil and Gas Producers, oil and gas fuels more than 50% of the global energy demand and oil production in 2018 exceeded 100 million barrels per day for the first time. Owing to such unprecedented rate of supply, many sectors integrated in the vast ecosystem of oil and gas industry are witnessing unparalleled business opportunities with valves and fittings market demand increasing substantially as it is an imperative tool in oil refineries and plants. Valves and fittings are instruments which determine the flow of liquids or gasses in a machinery or equipment. Valves are installed in various industrial processes, including oil and gas, pharmaceuticals, power generation, mining, food manufacturing, pharmaceuticals and many other. Fittings refer to a small part which is used to attach two different parts of machinery or equipment. Capitalizing over industrialization sinking into economies all across the globe, the global valves and fittings market is valued at $3.28 billion as of 2018.
Apart from the oil and gas industry, demand from various other industries including pharmaceutical and semiconductor is driving the valves and fittings market at a compound annual growth rate of 3.56% during the forecast period of 2019-2025. Pharmaceuticals manufacturers employ extremely ultra-clean, precise, sterile and high grade instrumentation valves and fittings for the manufacturing processes of drugs and medicines, while its application in the semiconductors sector is in fabrication and manufacturing processes equipment.
After a regional analysis of the global valves and fittings market business insights, APAC is identified to be the leading marketplace in terms of overall revenue generation. Increasing consumption of oil and gas products, numerous coal-based power plants, and the presence of major semiconductor players in Taiwan, South Korea, and China are the factors responsible for APAC sourcing 28.21% of valves and fittings market global demand in 2018. Some factors supporting the argument-
· APAC consumes 35% of global oil with the production capacity of mere 8%, making it a lucrative spot for imports. In 2017, 9.4 million barrels per of foreign oil day was required by China to meet its local demand. And with developing distribution network and import channels, oil industry is foreseen to augment, benefiting the valves and fittings market.
· According to IBEF (India Brand Equity Foundation), Indian paper demand is set to increase 53% by 2020. Global average of per capita paper consumption is 58 kg with APAC countries such as China consuming 42 kg per capita. Application of valves in APAC's flourishing pulp and paper industry, for operations such as measuring pH, regulating pressure and temperature, boiler control and flow measurements is a major growth driver positively impacting the market.
· Energy & power sector is another prominent end-user industry for instrumentation valves and fittings, for handling process water for energy production, boiler startups, feed pump re-circulation, steam conditioning, turbine by pass and cold reheat isolation in coal-fired plants. As per the World Economic Forum, 40% of electricity is generated from coal and with China and India as global leaders in terms of coal production, APAC hosts numerous coal-fired plants creating ample opportunities to be capitalized by valves and fittings market in the region. Some of the largest coal power plants in the world are Datang Tuoketuo station (China), Taean power station, Dangjin power station (South Korea) and Taichung power station (Taiwan).
Among various application and end-user sectors including oil and gas, chemicals, energy and power, and paper and pulp industry, oil and gas chemical sector is the most indulged sector in terms of employing valves and fittings in its operations including offshore apparatuses, refinery plants and gas handling systems. It progressing with an application growth CAGR of 3.16% going through 2025. Types of valves employed by this sector basically includes control valves, poppet valves, hydraulic valves, and pneumatic valves.
· Low-carbon economy is a global trend and since the inception of shale gas technology it has enabled industries to reduce their reliance on the traditional coal power plants considering the carbon footprints generated by fossil-fuels. The demand for this naturally occurring alternative source of power is increasing the drilling, fracking and extraction activities to keep up with the rising demand for power. The growing consumption of shale gas is resulting in increased demand for valves and fittings to be used in offshore apparatuses, refinery plants and gas handling systems.
· The advent of factory automation market is major trend disrupting the valves and fittings market. Hence, the demand for automatic valves is estimated to outpace standard valve sales. Rising cost in raw materials and minimizing profits are propelling manufacturers to employ technology to minimize expenses. Manufacturers in advanced economies are most likely to follow the trend of implementing automated valves, whereas developing nations are more likely to purchase the standardized valves.
· The growing trend of utilizing confined chambers, also known as hyperbaric chambers has added the flourishing healthcare sector as an imperative end-user industry in the valves and fittings market. These chambers are used for remedying various disorders and illnesses in hospitals including Hyperbaric Oxygen Therapy (HBOT), where air pressure inside varies from ambient atmospheric pressure employs instrumentation valves and fittings for its construction, affecting the growth of its market in the future.
Some of the key companies controlling majority of the valves and fittings market share are Parker Hannifin, HY-LOK Corporation , Fujikin Corporation, Circor International , Dwyer Instruments , Oliver Valves, Astectubelok, Bray International, Fitok, and Hex
Oliver valves is a leading manufacturer of instrumentation valves for flow controlling in oil, gas and petrochemical companies. Oliver Valves, Oliver Valvetek and Oliver Twinsafe as a part of same business manufacturing high-pressure valves for the oil and gas sector and are globally stationed at various locations including Dubai, Houston and Brazil.