The report "Industrial Valves Market With COVID-19 & Oil Price Crisis Impact Analysis By Function (On-off/Isolation, Control), Material, Type, Size, End-User (Oil & Gas, Energy & Power, Water & Wastewater Treatment), and Region - Global Forecast to 2025", size was valued at USD 48.1 billion in 2020 and is projected to reach USD 85.7 billion by 2025. It is expected to grow at a CAGR of 12.3% during the forecast period. Increasing demand for valves from the pharmaceuticals industry due to the outbreak of the COVID-19 pandemic, growing focus on the development of smart cities globally, rising need for connected networks to maintain and monitor industrial equipment, and surging requirement for establishing new nuclear power plants and revamping existing ones are the key driving factors for the industrial valves market.
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Market Dynamics:
Driver: Increasing demand for valves from healthcare and pharmaceuticals industries due to the outbreak of the COVID-19 pandemic
With the rapid spread of the coronavirus, healthcare and pharmaceutical industries are at the forefront of combating COVID-19. There is a rise in the production of all the critical medical devices required to cure COVID patients. Industrial valves play an important role in the manufacturing of different types of medical devices, and several key industry players have grabbed the opportunity to fight against the deadly coronavirus pandemic. For instance, Emerson’s valves are capable of managing pressure relief, keeping equipment and materials clean in sterilizers, in oxygen therapy devices to help high-risk patients or those in recovery, as well as support blood analyzers and other vital hematology equipment. The company’s high-pressure and high-purity valves also provide oxygen supply to pop-up and remote hospitals, as well as triage centers.
Additionally, Emerson makes a series of miniature instrument-level valves for analytical and medical equipment, and the company, for the first time, is witnessing the growing demand from the providers of oxygen therapy devices. Additionally, new hospital beds, these days, have air bladders that are pneumatically actuated and designed to increase patient comfort. Emerson makes valves for these air beds. With the skyrocketed requirement for hospital beds, Emerson’s valves are adopted to a great extent by the manufacturers of hospital beds. The company’s ASCO series offers a range of associated or similar valves, as well as valves with different capabilities such as pinch valves, which find applications in medical devices. The company also offers a series of ASCO solenoid valves that find applications in hospital beds.
Also, companies are increasingly investing in research and development pertaining to automatic components such as solenoid valves that are supplied to the pharmaceutical industry. Likewise, pharmaceutical companies seek to develop sophisticated fluid handling systems, such as automatic sanitizer dispensers and liquid soap dispensers, which, in turn, is creating the need for valves. Thus, the growing production of healthcare devices and increasing R&D investments in the pharma field boost the growth of the industrial valves market.
Restraint: Lack of standardized norms and governing policies
Valve manufacturers need to adhere to certain norms and regulations. Different regions have different certifications and policies with respect to valves. This factor creates diversity in demand due to the wide applicability of valves in various industries, such as oil & gas, food & beverages, pharmaceuticals, energy & power, water & wastewater treatment, building & construction, chemicals, and pulp & paper. However, such diversity is hindering the growth of the valves market as industry players have to amend the same product according to the regional policies, which makes it difficult for the valve manufacturers to achieve an ideal cost of installation. To resolve this issue, they have to invest their resources in setting up manufacturing facilities across the world, thus requiring additional capital.
Opportunity: Implementation of valves in water & wastewater treatment plants to handle sanitation-related issues with the rapid spread of COVID-19
In the COVID-19 pandemic situation, water utilities are under close observation to provide safe drinking water and sanitation. The outbreak of coronavirus has created insecurity among people. Water & wastewater treatment is among the essential services, and hence, the plants are operational for all residential services. The pandemic has made people more concerned about sanitation and clean water. Thus, investments in establishing water treatment plants are expected to propel the growth of the industrial valves market.
Additionally, the aging infrastructure in the water & wastewater treatment industry is the primary concern in several countries. For instance, the US has a wide network of old pipelines that are used for transporting water and wastewater. Valves used in old infrastructure are also on the verge of replacement as they have surpassed their operational life. Hence, it is important to replace such valves for improved performance and better worker safety. Thus, the rising concern of people for better sanitation and increasing fresh investments in water supply and sanitation projects creates significant opportunities for the providers of valves having applications in the water & wastewater treatment industry.
Challenge: Adverse impact of COVID-19 pandemic on key end-user industries such as oil & gas and energy & power
From a single case in China to a global pandemic in less than 3 months, the outbreak of COVID-19 has forced governments worldwide to take drastic measures to protect public health in 2020. This global health crisis has also dented economic growth prospects and upended the oil market. The oil market has been supported by additional production adjustments put in place by OPEC and non-OPEC countries in the Declaration of Cooperation for the first quarter of 2020. In the last week of March and the entire April, all the indices have deteriorated in terms of economy, stocks, equities, financial instruments, metals, commodities, and oil. Since the beginning of 2020, crude oil prices are decreasing dramatically. Consumer demand has declined following the continued spread of the virus and its negative impact on the economy, which, in turn, has led to the disagreement between of the largest oil producers, Russia and Saudi Arabia, in early March. All these factors are expected to lead to a setback in the industrial valves market in the oil & gas industry.
The pandemic has affected the oil & gas industry badly, with oil prices slashing like never before. Key oil-producing companies are running out of storage space for extracted oil, and the demand is on a declining trend. This has resulted in a huge gap between supply and demand. Oil & gas is one of the key industries for industrial valves. The pandemic has an adverse impact on the growth of the industrial valves market.
During the last two months, i.e., March and April, in 2020, the electricity demand curve has changed in the affected regions. The demand for residential use electricity is high; however, the commercial and industrial use of electricity is almost near to null, except for essential services. The power sector has been adversely affected by the COVID-19 pandemic. The energy & power industry will see a decline in industrial production in 2020. This, in turn, is expected to affect the global industrial valves market because usually, a large power plant uses hundreds of valves to manage the flow of water and steam.
The lockdown in many countries has led to the shutdown of most commercial activities, except essential ones, across the world. People are instructed to remain within the confines of their homes and work from home as far as possible. Consequently, the electricity demand in the industrial and commercial sectors has reduced significantly, while from the residential area, the demand has increased. Such a decline in demand has directly affected the industrial valves market. New projects have come to a standstill, along with which the demand for valves used or required for new facilities has been affected.
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