Control Valve Market

Market Overview

The global control valve market size was valued at USD 6,040 million in 2021. It is expected to reach USD 11,290 million by 2030, growing at a CAGR of 7.2% during the forecast period (2022–2030). 

Control valves are used in processes like oil & gas, water management, chemicals, power generation, automotive, mining, pharmaceuticals, and food & beverages to control flow, temperature, pressure, and fluid level. They are essential to making these process industries more efficient, safe, and profitable. Also, companies that make control valves are constantly researching and developing to ensure their products meet the changing needs of different industries.

In recent years, the control valve market has grown significantly due to improvements in automation and control technologies for valves. Automatic valves can be controlled from a distance, which is helpful in dangerous and remote places like oil & gas, chemical, and power plants. Additionally, automatic actuator or control systems make it easy to upgrade standard valves, which helps the control valve market grow. The need for control valves is also driven by oil & gas storage and refining infrastructure investments, mainly in North America.

Market Dynamics

Market Driving Factors

Need for Automation in Process Industries to Impede the Market Growth

Control valves offer precise positioning, are available in different diameters, and are robust. Control valves include the use of a valve positioner and actuator. The actuator head rotates at 360°, enabling flexible installation and synchronizing air-port alignment. Therefore, automation in the control valve positioner offers more efficiency, reduced energy consumption, and more reliability.

The industry 4.0 concept is used for the high adoption of solenoid valves, actuator valves, and pneumatic solenoid valves for process automation. Furthermore, according to the Valve Manufacturers Association of America, shipments of automated valves in the US increased from USD 4.549 billion in 2017 to USD 4.615 billion in 2018, a growth of 1.45% over one year. This indicates a surge in demand for automated valves, thereby driving the control valve market.

Increased Demand from Pharmaceutical and Food & Beverages Industries to Aid Growth

Pharmaceuticals and food & beverages industries are primarily saturated in developing countries. Control valves have an essential role in manufacturing different medical devices. Increased demand for food from countries such as Canada, Brazil, and India also extends the need for control valves. Major companies are investing in research and development for automatic components, such as solenoid valves, increasing demand for control valves and propelling the market growth. Therefore, the development of the food & beverages and pharmaceutical industries drives the growth of the control valve market.

Market Restraining Factors

Competition from Domestic Manufacturers to Hinder Market Growth

A significant factor that hampers the market growth is competition from domestic manufacturers. A control valve is used mainly in industrial and commercial spaces. Many domestic manufacturers provide control valves ranging from USD 100 to USD 200, whereas key players offer control valves ranging from USD 100 to USD 2500. This price disparity compels customers to focus more on adopting control valves from domestic manufacturers.

Key Market Opportunities

Increased Investments in Hydrocarbons by Emerging Economies to Spur Market Opportunities

Emerging economies like India, China, and Egypt, are investing heavily in hydrocarbon projects to produce more oil & gas exploration, which is expected to provide lucrative opportunities for growth of the control valve market. The rise in demand for oil & other energy and renewable resources is anticipated to drive the development of the control valve market. The government of Egypt invested about USD 2.5 billion in constructing a new oil refinery project to process hydrocarbons. Such instances create tremendous growth opportunities for the control valve market.

Regional Analysis

Region-wise, the global control valve market analysis is conducted across North America, Europe, Asia-Pacific, and LAMEA.

How is the Control Valve Industry Performing a Geographically?

Asia-Pacific is the highest revenue contributor and is estimated to grow at a CAGR of 8.1% during the forecast period. Asia-Pacific includes most developing countries such as India, Vietnam, and Indonesia, which exhibit lucrative opportunities for the control valve market. China highly contributes to manufacturing industrial valves with the establishment of major global players such as Xinhai Valve Co Ltd, BOTELI Valve Group, XHVAL, and Sanhua Valve-Zhejiang Sanhua Co., Ltd.

Furthermore, growth in infrastructure development in emerging countries such as India and China is anticipated to cater to the growth of the control valve market. The biopharmaceutical sector in Asia is also growing rapidly, owing to local governments' significant spending on life sciences, biotechnology, pharmaceuticals, and the healthcare industry. Such perspectives in industrial growth aid in boosting demand for control valves, which is expected to drive the control valve market significantly.

North America is the second largest region and is projected to reach USD 2,450 million by 2030, growing at a CAGR of 6%. The North American market for control valves is mainly saturated, owing to the high industrial infrastructure in developed economies like the US and Canada. However, developing manufacturing, food & beverages, and chemical industries in Mexico exhibit high demand for industrial valves in the region. According to the Valves Manufacturers Association of America (VMA), the North American valve industry contributed approximately 35% of the global valve requirements in 2019.

Furthermore, research & development activities in North America regarding using valves in automation and a rise in demand for safety applications are expected to propel the market growth. An increase in the development of the oil & power industry in Canada and the US also aids in increasing the focus of major industrial valve manufacturers on oil & power-related valve production. For instance, Velan, Inc., headquartered in Canada, claims to have installed approximately 90% of North America's oil refinery valves. This boosts demand for control valves, which, in turn, drives the regional market.

The rise in focus of European countries on renewable power generation is expected to boost the demand for control valves in the region. According to a report published on Renewable Energy in Europe in March 2020 by the European Commission, the European power production from renewable resources surpassed the power produced by coal in 2019. Five countries, namely Finland, Sweden, Denmark, Austria, and Latvia, had the highest share of energy production from renewable sources.

In addition, based on the 30th oil & gas survey conducted in 2019 by Aberdeen & Grampian Chamber of Commerce along with the Fraser of Allander Institute, approximately 45% of contractors have increased investment expenditure on oil & gas processing and extraction in the UK Continental Shelf (UKCS) in 2018. Expanding production of oil & gas from subsea sources has also increased the demand for control valves, driving the control valve market. All these factors boost the development of the market in Europe.

Segmental Analysis

The global control valve market is segmented by type, operation, application, and region. 

By type, the global market is divided into Linear and Rotary.

The linear segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.3% during the forecast period. Linear control valves have many advantages over other materials, such as easy maintenance and durability. They offer a tight seal, which prevents leakage to a great extent. Linear control valves are used for industrial applications and can be used to flow any fluid in the process. Major players such as Flowserve Corporation and Metso Corporation offer linear control valves for industrial applications. For instance, Flowserve Corporation offered a Linear control valve, FlowTop. It has high-performance and excellent control performance, with low noise or cavitation control function. It minimizes vibrations and is used for industrial applications. This versatile nature of linear control valves highly contributes to the market's growth.

The rotary segment is the fastest growing. Rotary valves are highly versatile, which allows the regulation of liquids and gases. They mainly support flow pressure of up to 700 bars and temperature of up to 200 degrees Celsius. In addition, ball valves offer a better sealing ability, making them an ideal choice for regulating gas flow. Moreover, highly efficient flow control, ease of management, compact size, and versatile design drive the demand for rotary control valves. 

By operation, the global market is divided into Pneumatic, Hydraulic, and Electrical Control.

The pneumatic control valve segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.8% during the forecast period. Control valves include a valve positioner, which converts electrical signals to pneumatic signals to control the actuator of a valve. Therefore, automation in the valve positioner offers more efficiency, reduced energy consumption, and reliability. Pneumatic control valves operate at a pressure ranging up to 150 psi. It has extended durability, limited space application, and easy installation. These factors are anticipated to cater to the growth of this segment.

The electrical control valve segment is the fastest growing. Electric control valves are used in the meat, food & beverage industries, fish canneries, milk & dairy sectors, and others. Electric solenoid valves are used in applications such as dishwashers and washing machines. An increase in manufacturing and industrial activities around the globe led to a rise in demand for more electric control valves, which is expected to cater to market growth. 

The hydraulic control valve segment is the second largest. Growth in the development of water & wastewater, oil & gas, and food & beverages industries is projected to drive market growth. For instance, Japanese enterprises are anticipated to create an independent development ratio in Japan for oil and natural gas, including construction, to over 40% in 2030. Hydraulic control valves are used in construction machineries such as excavators, dump trucks, and loaders. The demand for drilled pipelines is also expected to create opportunities for the hydraulic valve market. 

By application, the global market is divided into Electrical Power, Water & Wastewater, Automotive, Oil & Gas, Pharmaceuticals, Mining, Chemicals, Food & Beverages, and Others.

The oil & gas segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.4% during the forecast period. This industry is the highest consumer of industrial valves, owing to the high demand for valves from nearly all its sectors. According to DNV GL AS, a technical advisory company for the oil & gas industry based in Norway, the demand growth for oil & gas is mainly anticipated from emerging economies, including South East Asia and Sub-Saharan Africa. The increased demand has also led to high investment in the infrastructure of the oil & gas industry. These factors boost the growth of this segment.

The water & wastewater management segment is the fastest growing. Water & wastewater processing commonly requires a control valve, diaphragm valve, and check valve considering the sediment content in water. Wastewater is highly corrosive and requires non-corrosive, highly efficient control valves to obtain desirable flow throughout the piping system. Moreover, growth in water scarcity has increased the focus on water & wastewater treatment to reduce water wastage. Furthermore, the construction of infrastructure for the desalination of seawater can result in lucrative opportunities for a surge in demand for control valves for water & wastewater applications during the forecast period.

The chemical segment is the third largest. Major players in the valve and valve automation industry are offering specialized solutions to automate the operation of control valves in chemical processing applications. For instance, Bray International, based in the US, gives Bray control valves to regulate gas or liquid flow accurately, precisely, and quickly, using valve automation systems. It also offers Safety Instrumented System (SIS) for safe operations, ensuring emergency stoppage. Such products boost the growth of control valves in chemical industry applications.

Recent Developments

• June 2022 - Emerson, a global leader in technology and software solutions, announced its plan to reduce glasshouse gas (GHG) emissions to zero for Scope 1, Scope 2, and Scope 3 by 2045. In its 2021 ESG report, the company talked about its plan to reach net zero and its environmental, society, and governance progress.
• June 2022 - Emerson announced a multi-year strategic framework agreement with BayoTech, an innovator in hydrogen solutions, to accelerate hydrogen delivery worldwide. Emerson will deliver advanced automation technologies, software, and products to enable BayoTech to build hundreds of hydrogen units to produce cleaner, lower-cost hydrogen.