With an expected growth in the oil and gas, power, pipeline, steel, infrastructure, petrochemicals and pharmaceutical industries, the demand for valves are expected to gather steam in future.

 

The growing demand for flow control equipment is expected to favorably impact Indian valves market, which is growing at nine per cent compounded annual growth rate (CAGR). With the global industrial valve market all set to touch $ 88.4 billion by 2021, there was huge potential for Indian manufacturers to cross $ three billion by 2023, according to Engineering Export Promotion Council (EEPC). However, Indian valve industry will have to invest in R&D and technology to compete globally and to meet the future demand arising from the substantial investment proposed in power generation, petrochemicals, gas and fertiliser plants.

 

A key area of development is 'smart' control valves, to which 90 per cent of offshore players are expected to devote research and development resources over the next few years. The Indian valve industry must have a complete portfolio, including development of the upgraded and smart industrial valves in order to capitalise on global demand, EEPC said.

 

Back to basic

Valves are used to control or divert the flow of liquids, gases, slurries, dry material or steam in all types of industries. They are also used to control or isolate the rate of flow volume, pressure, direction or a combination of these parameters. Valves can be broadly classified into 2 types - multi-turn or linear motion valves (such as gate, globe, pinch, needle, etc) and quarter turn valves (such as ball, plu, butterfly, etc).

Indian valve industry has come a long way from making simple valves to producing a wide range of sophisticated precision valves. But the industry is highly fragmented with around 600 valve manufacturers, of which more than 95 per cent are in the micro, small and medium enterprise (MSME) category. MSMEs are heavy depended on sub contractors. The pumps and valves market in India provides an opportunity of Rs 17,500 crore and is expected to grow at an annual rate of 7 to 10 per cent over the next few years.

 

Industrial valves market

During the 12th Five Year Plan (FYP), the FDI inflows in petroleum & natural gas sector attracted investments worth $ 152.77 billion; wherein a major chunk of the fund is to be used for the expansion of gas pipeline projects across the country. Increase in the number of pipeline projects in the country is expected to positively influence the India industrial valves market over the next five years.

 

“In India, industrial valves market has been catalysed by rising demand for power across diverse end use sectors such as oil & gas, power, petrochemicals, etc. Oil & gas pipeline infrastructure is undergoing considerable expansion in India, and since valves are regularly deployed in pipelines, which, in turn, has been driving their sales in this sector in India,” said TechSci Research in a report, which predicts Indian industrial valves market to surpass $2.4 billion by 2022. 

 

Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm, said, “Any improvement in the performance of industrial valve positively impact its end use industry. In oil & gas hydraulic fracturing of unconventional plays, any failure 

of a frac valve can have a huge impact on operational efficiency. Operators are ready to pay extra for industrial valves with better performance, and are reliable under the most extreme conditions of temperature and pressure.”

 

Oil & gas driving the demand

Industrial valves are mechanical/electromechanical devices used for controlling, regulating and diverting flow and pressure in fluids (liquids, gases and slurries) by closing, opening or blocking the passage of fluid. Industrial valves are widely being used in diverse sectors including oil & gas; petrochemicals, chemicals & fertilisers; power; etc.

 

“Increasing FDI in industries such as oil & gas, chemical, and petrochemical, growth in the pipeline network, and increasing number of small & medium manufacturers are some of the key factors driving the demand for industrial valves. In India, industrial valves market grew significantly over the last three years owing to increasing industrial application and government focus towards expanding pipeline infrastructure for natural gas distribution,” stated Hyper Valve in a statement. 

 

The industrial valves market in India is anticipated to grow at a CAGR of over 9 per cent during 2017-2022. Expanding demand-supply gap in Indian power industry has been driving the need for power capacity additions, which is providing a boost to industrial valves market in the country.

 

Over the years, the Indian Government has been continuously focusing on the expansion of pipeline network for the distribution of natural gas across the country. Moreover, the demand for natural gas in India is projected to increase from 446 MMSCMD in 2016 to 523 MMSCMD by 2019. Hence, with increasing demand for natural gas coupled with a continuous expansion of natural gas distribution network, the country’s industrial valves market is expected to grow at a robust pace over the next five years. 

 

From operational, safety and reliability point of view, the industrial valve is one of the crucial components used in oil & gas industry. Oil & gas is expected to remain the largest source of fuel in India in the next five years as well, consequently aiding India industrial valves market.

With an expected growth in the oil and gas, power, pipeline, steel, infrastructure, petrochemicals and pharmaceutical industries, the demand for valves are expected to gather steam in future.