Industrial Valves Market Trends

Growth Drivers

• Expansion of oil & gas and energy sectors: The increasing investments in upstream exploration, LNG infrastructure, and refinery upgrades fueled by demand are driving the market expansion. According to the U.S. Energy Information Administration (EIA), U.S. gross exports of liquefied natural gas are forecasted to be 12 billion cubic feet (bcf) per day in 2024, 15 bcf per day in 2025, and 16 bcf per day in 2026. Shale formations accounted for roughly 78% (37.87 trillion cubic feet) of all dry natural gas production in the United States in 2023. Additionally, aging refineries in regions like the U.S. Gulf Coast and Europe are replacing outdated valves to comply with stricter EPA emissions standards, with valve replacement and refinery maintenance costs. These trends underscore how energy sector growth directly propels industrial valve demand.
• Water & wastewater infrastructure development: The water & wastewater infrastructure development is a key driver of the industrial valves market, as per the World Bank, the global investments in water systems are projected to exceed $1.37 trillion by 2030. The U.S. Bipartisan Infrastructure Law allocated more than $50 billion for water infrastructure upgrades, including smart valves for leak detection and pressure management. India’s Jal Jeevan Mission provided more than 10.76 Crore (55.62%) of rural families had regular access to tap water in sufficient quantities and of the recommended quality as of December 2022. The global smart water valve market is driven by demand for automated and IoT-enabled valves in municipal systems. Additionally, aging water networks in Europe require urgent valve replacements. The new EIB Group Water Resilience Program has been developed in consultation with and in harmony with the European Commission's Water Resilience Strategy and is expected to mobilize €40 billion of global water investments by 2027.

Demand Analysis of the Industrial Valves Market

Top Pressure Reducing Valves Exporters in 2023

Source: WITS

Challenges

• Pricing pressures from raw material volatility and compliance costs: Raw material price fluctuation and compliance costs are exerting strict pricing pressures on industrial valve manufacturers, particularly stainless steel and special alloys production costs. Steel prices across the globe increased as a result of shortages (WTO). Both of them overcome the spirit of pricing flexibility, especially for SMEs. Several U.S. manufacturers in 2023 postponed expansion plans, unable to pass on rising costs without impacting customer prices, thereby suppressing overall market growth.
• Regulatory barriers and market access limitations: Stringent environmental and safety regulations are still a hindrance for industrial valve suppliers to pursue international growth. In 2022, China's Ministry of Ecology and Environment (MEE) enhanced chemical safety regulations, inducing another six months on average for valve certifications decline in revenue for affected companies. On the contrary, domestic suppliers like Emerson Electric enhanced market share in 2023 with the introduction of low-emission technologies. However, higher compliance costs are a hindrance to small firms. WTO data show non-tariff barriers, specifically regulatory compliance, have become the most significant industrial value trade barrier since 2021.