How do you Review the Global Valve Market during the Epidemic?
- KEPLER TEAM
- Nov 22, 2021
- 4 min read
In February 2021, Mr. David Clayton, a senior analyst of ARC Consulting Group, stated in the article "ControlValveWorldwideOutlook": Based on the rapid growth of the global control valve market in 2006 and 2007, predict the next 5 years The global control valve market will maintain a compound annual growth rate of 6%. Based on the 2007 global control valve market sales of 4.8 billion U.S. dollars, by 2012, the global control valve market is expected to exceed 6.4 billion U.S. dollars (as shown below).
Unfortunately, in the first quarter of 2008, developing countries and regions, such as China, India, and the Middle East, have high demand for control valves in markets dominated by oil and gas industries, but control valves Supplier revenue growth in the North American and European markets began to slow down.
In 2020, Mr. Clayton pointed out: Although the current global control valve market has strong growth opportunities, challenges still exist. In many respects, control valve suppliers are facing the same opportunities and challenges as before. The strong growth in developing countries and regional markets provides an excellent opportunity for control valve suppliers 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 the difficulties that control valve suppliers need to face and overcome. For example, in many new petrochemical projects, large control valves are required to withstand extreme temperature conditions and provide tight shut-off functions; and in deep-sea oil operations, high-pressure control valves are required to provide effective opening thrust or sufficient torque.
In addition, with the continuous improvement of modern production process automation, process parameters have become important indicators for judging the efficiency of the production process, working conditions and economic performance. Control valves are used in systems such as continuous and discrete control, energy measurement, trade settlement, and storage and transportation. The role of is becoming more and more prominent. The requirements for precise control, multi-function and intelligence of the control valve are getting higher and higher.
One of the highlights of the development of the automation industry in 2020 is the rise of wireless communication in industrial automation factory applications. The advantages of wireless communication technology in remote, mobile, and anytime, anywhere control make the original wiring control look awkward. Therefore, on the one hand, control valve suppliers are actively developing DTMs (DigitalTVMonitorSystem) in order to work with data embedding diversified intelligent field devices based on the PAM (PulseAmplitude Modulation) solution based on FDT (FormalDescriptionTechnique); on the other hand, control valve supply Companies are considering vigorously developing wireless HART (HighwayAddressableRemoteTransducer) products.
In 2020, due to the strong growth of the control valve market in developing countries, control valve suppliers strive to expand their manufacturing capabilities to meet customer needs, and the control valve market maintains growth. In sharp contrast with 2019, due to the impact of the financial crisis, control valve suppliers will drop sharply in 2020, and control valve orders will decrease. In the third quarter of 2020, Mr. Clayton is still optimistic that the global control valve market is expected to pick up in 2021.
Affected by the current global economic recession, the development trend of the global control valve market has undergone tremendous changes. In the past 4 years, companies that are more active and pursuing new businesses have grown faster, and they have also benefited from the rapid growth of the market. Despite the economic downturn, many control valve suppliers once again find themselves in a market full of opportunities and less competition. Therefore, it is a very important way for control valve suppliers to go out and obtain new business. At the same time, it is more important than ever to preserve the existing user base.
In the past few years, the explosive growth of the control valve market has led to a sharp increase in control valve suppliers’ hand-held orders and increased production to meet market demand. In the case of economic recession and decline in shipments in 2020, control valve suppliers Suppliers have a large backlog of inventories. 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-term periodicity of orders, these backlogs are difficult to digest in a short time.
Facing the world economic recession, Mr. Clayton emphasized that the petroleum and related industrial markets are still the growth points of control valves; developing economies are still the engines of the growth of 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 to 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 BRIC countries (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 ever-increasing global consumption, which depends on a healthy capital investment and credit environment, stable market returns and intensive production demand. Only in this way can control valve suppliers be able to cope with the upcoming rapidly increasing energy demand and consumer demand in the control valve market around the world in the future.
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