A new study from The Freedonia Group, a Cleveland-based industry market research firm, predicts that the demand for industrial valves in the US will increase 4.9 percent per year to reach $19.8 billion in 2018. This forecast would be a considerable improvement from the performance registered during the period of 2008 to 2013.
During the 2008 to 2013 timeframe, end-use markets for valves were thought to be negatively impacted by the recession, which resulted in below average growth or declines. Moving forward through to 2018, valve manufacturers are believed to benefit from a renewed strength in the industries that use these products.
The study details that the construction market will post the strongest increases in valve demand as both residential and non-residential construction spending increase at double-digit growth rates, rebounding from the declines recorded during the 2008-2013 period. As well, analyst Brendan Eyre notes that, “US oil and gas production will continue to increase, driving sales of the often high-value valves utilized in these applications (custom engineered valves for use in large-diameter oil pipelines can cost upwards of $100,000).” However, process manufacturing will remain the largest end-use market for valves. Gains in this market will be supported by growth in manufacturing output, particularly in the valve-intensive chemical industry.
Demand for automatic valves is also forecast to outpace increases in standard valve sales, as a result of efforts by consumers to improve operational efficiencies. The positive outlook for most valve-using industries will lead companies to opt for automatic products in applications where they may have purchased standard valves in weaker economies. Automatic regulator valves will post the strongest gains of any product, as a result of their widespread use in chemical, oil and gas and utility applications.