Instrumentation Valves and Fittings Market

Market Overview

The global instrumentation valves and fittings market size was valued at USD 3.58 billion in 2022. It is estimated to reach USD 4.74 billion by 2031, growing at a CAGR of 3.17% during the forecast period (2023–2031). The surging adoption of automation in manufacturing plants is leading to technological advancements in the market. This, in turn, propels the growth of the market. Moreover, the soaring drilling and extraction activities in the petroleum industry are anticipated to boost the demand for instrumentation valves and fittings.

Instrumentation valves and fittings are required to operate any process control system in the industrial sector. These components control the flow of fluids and gases, regulate pressure and temperature, and ensure the system's safety. They are designed to meet or exceed the highest industry standards and to deliver consistent performance.

Instrumentation valves are devices used to control fluid or gas flow in a process control system. Valve types for instrumentation include globe, ball, gate, needle, and diaphragm valves. Similarly, instrumentation fittings are essential parts that join different parts of the process control system. They create a complete system by connecting pipes, valves, and other components. Various sizes and types of instrumentation fittings include tube fittings, pipe fittings, and compression fittings.

Market Dynamics

Global Instrumentation Valves and Fittings Market Drivers

Growing Adoption of Automation in the Manufacturing Units

Most of automation's effects on the economy and society are favorable, and as the population ages and grows, it is anticipated that automation will raise living standards. Several manufacturing plants have automated valve actuators for opening and closing valves. This valve automation is operated with the help of air pressure, hydraulically, or electronically. Automated valve actuators are frequently found in pharmaceutical manufacturing and food and beverage processing plants.

Generally, most automated valve actuators have an optional control top device. The control tops are attached to the top of the valve actuator and are used to provide electronic information in real time regarding the valve's performance. The surging adoption of automation in manufacturing plants is leading to the development of innovative fittings such as control tops and other technologies. This boosts the instrumentation valves and fittings market growth.

Important Role Drilling and Extraction Activities

According to EIA research, the rise in drilling efficiency has pushed crude oil and natural gas production worldwide. Factors including enhanced oil recovery, growing horizontal drilling, hydraulic fracturing, and accelerated factory model development techniques support production growth worldwide. Instrumentation valves and fittings are extensively utilized in applications related to the extraction and transportation of oil and gas.

The control valves used in the oil and gas industry play a critical role in the complex petrochemical process, as the multiple loops involved in the process must be kept under strict and dynamic control to ensure that the process works as intended and generates the desired output in terms of quality, quantity, and time. As valves and fittings play an important role in the oil and gas industry, the growing production and rise in the drilling and extraction activities in the industry are anticipated to augment the demand for instrumentation valves and fittings.

Global Instrumentation Valves and Fittings Market Restraint

Lack of Standardization of Certification and Policies 

Certain regions have distinct policies regarding certification and regulatory laws related to the manufacturing of valves, and producers of valves are required to conform to these standards and regulations. On the other hand, these standards always shift after a certain amount of time, which results in a varied customer demand. It is difficult for industry participants to achieve low-cost fabrication because manufacturers must establish a manufacturing unit following stringent regional standards, which requires substantial capital investment. As a result, market expansion is constrained as industry participants must manufacture products that strictly adhere to regional policies.

Global Instrumentation Valves and Fittings Market Opportunities

Growing Trend of Hyperbaric Oxygen Therapy (HBOT) 

The patients treated with hyperbaric oxygen therapy breathe pure oxygen in a pressurized environment. Hyperbaric oxygen therapy is a widely recognized treatment for decompression sickness, a potential risk of scuba diving. As per the Undersea and Hyperbaric Medical Society (UHMS), there are about 1,200 HBOT centers in the US alone, and the number is expected to grow. With high-quality instrumentation valves and fittings, processes are made more effective, and there is no risk of exposure to hazardous fluids or gases.

Furthermore, these chambers have large bore valves and actuators. The hyperbaric chambers are also fitted with redundant pressure relief valves and rupture discs calibrated to relieve the pressure when it exceeds 470 atmospheres. The hyperbaric chambers use several instrumentation valves and fittings to control the pressure inside the chamber. The growing popularity of hyperbaric oxygen therapy leads to a rise in demand for hyperbaric chambers, propelling the sales of instrumentation valves and fittings, hence generating prospects for market expansion.

Regional Analysis

Based on region, the global instrumentation valves and fittings market is bifurcated into North America, Europe, Asia-Pacific, and RoW.

Asia Pacific Dominates the Global Market

Asia-Pacific is the most significant global market shareholder and is anticipated to exhibit a CAGR of 3.74% during the forecast period. The rising chemical and healthcare industries are expected to provide tremendous opportunities for the market. The consumption of instrumentation valves and fittings is high in oil and gas, and downstream production has surged in the region. This is further raising the production capacities of petrochemicals, thus augmenting the consumption of instrumentation valves and fittings in the region. The other major industry in the region is the water treatment facility used in different industries. In addition, the rising fuel demand is boosting the demand to increase the refining capacity due to increased sales of passenger cars, replacement of LPG as a cooking fuel, and growing urbanization, coupled with the demand for infrastructure and consumer goods. The factors mentioned above, together with government support, are contributing to the increasing demand for instrumentation valves and fittings consumption in the region during the forecast period.

North America is estimated to exhibit a CAGR of 3.13% over the forecast period. The North American regional market is expected to grow highly in the global market. The region is home to various leading instrumentation valves and fittings manufacturers. The United States market is undergoing a revolution in oil and gas production from shale gas, and the developments have led to high investments in exploration and production in North America. In addition, the United States dominated the market in North America due to the region's high demand for valve replacement, resulting from an abundance of active construction projects. The United States and Canada have approximately 1,900 projects requiring valve replacement and simultaneous facility upgrades. Similarly, the Environmental Protection Agency (EPA) of the U.S. has increased investment in the nation's aging water infrastructure. The EPA has issued seven WIFIA loans to help aid over USD 4 billion in water infrastructure projects, expected to stimulate the industry's market growth.

Europe region is anticipated to witness slower growth as compared to other regions. Nevertheless, with the development of offshore sites and increasing demand originating from Russia in the midstream oil and gas segment, the demand for instrumentation valves is anticipated to witness an upsurge across the region over the forecast period. The European region is also a center for healthcare players. Technological advancements in its healthcare sector are anticipated to increase the demand for the region's instrumentation valves and fittings products, fueling market growth. In addition, the rising number of oil and gas pipeline projects in the European region will likely boost the demand for instrumentation valves and fittings. For instance, in 2015, Gazprom signed a memorandum of understanding (MoU) with three European companies to construct Nord Stream II, a second large gas pipeline system beneath the Baltic Sea. The future demand for instrumentation valves and fittings solutions will be for ones that feature low emissions, efficiency, and low cost of operations.

The RoW comprises the Middle East and Africa and South America region. The rising government initiatives and funding for the growth of several industries bolstered the growth of South America's market. Rapidly industrializing South American countries will grow remarkably for the instrumentation valves and fittings market soon. Due to rising urbanization, globalization, and industrialization, the Middle East and Africa are expected to experience significant growth during the forecast period. Increasing economic growth and rising purchasing power parity are primarily responsible for the market's enormous potential. The market for instrumentation valves and fittings in the Middle East and Africa is anticipated to expand steadily in Egypt over the forecast period.

Segmental Analysis

The global instrumentation valves and fittings market is segmented by product, material, and industry.

Based on product, the global market is divided into valves, fittings, actuators, and others. 

The valves segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 3.53% throughout the forecast period. Valves are used to control the flow and pressure of fluid within a system or process. This control is accomplished by manipulating an obstruction within the valve. Material selection is crucial when specifying valves to ensure compatibility between the valve's wetted parts and the fluid or powder passing through it. Similarly, the pipe or tubing diameter, the flow rate, and the distance between the flanges determine replacement pipeline valve sizes. The valve segment is further segmented into balls, needles, checks, and plugs.

Fitting is primarily used for installing or repairing piping or tubing systems that convey gas and occasionally supply liquid. Fitting is used in various applications, including corrosive liquids, medical or laboratory wastes, or pharmaceutical manufacturing. Pipe fittings are also designed to meet application-specific performance requirements. This is expected to boost the demand for fittings during the global forecast period. The instrumentation fittings market is prospering, as they provide a leak-proof and torque-free seal at all tubing connections and eliminate costly and hazardous leaks in instrumentation and process tubing.

Based on material, the global market is divided into stainless steel, alloy, cast iron, and others. 

The stainless steel segment dominates the global instrumentation valves and fittings market and is predicted to exhibit a CAGR of 3.78% over the forecast period. The stainless steel instrumentation valves and fittings segment is expected to hold a major market share. The mounting demand for high-quality instrumentation valves and fittings in food and beverages, pharmaceuticals, chemicals, and metals and mining sectors to mitigate the threat of contamination is a significant factor that fuels the demand for stainless steel valves and fittings at current, and a similar trend is likely to be pragmatic during the projection period.

Alloy combines high tensile strength with low density and outstanding corrosion resistance, giving it the highest strength-to-weight ratio of any metal. It is widely used where severe service conditions are encountered. The alloys are particularly useful in harsh, corrosive environments, such as the chemical, petrochemical, and oil and gas industries. However, its high weight and cost may hamper the segment's growth during the forecast period. Alloy instrumentation valves and fittings usually experience demand from pharmaceuticals, chemicals, oil and gas, and food and beverage industries.

Based on industry, the global market is bifurcated into oil and gas, food and beverages, chemicals, healthcare, pulp and paper, energy and power, and others. 

The oil and gas segment is the highest contributor and is anticipated to exhibit a CAGR of 3.43% over the forecast period. The primary factor contributing to the largest market share may be attributed to the increasing prominence of the transportation sector, escalating energy consumption, and the notable surge in drilling activities within the Gulf Cooperation Council (GCC) economies. In a comparable vein, prior to the onset of the COVID-19 epidemic, oil and shale gas production in the North American region had significantly augmented the need for instrumentation valves and fittings.

The chemical industry is a big user of instrumentation valves and fittings of all types and materials. Valves are a major component of chemical process pipe systems, from small-batch operations to the large petrochemical complexes on the Gulf Coast. As extremely corrosive chemicals and pure media are handled in the chemical industry, with the different solids in the suspension area being mixed into the numerous chemical processes, there is an urgent necessity for a high-quality ball valve throughout every procedure. With high-quality instrumentation valves and fittings, processes are made more effective, and there is no risk of exposure to hazardous fluids or gases.

Recent Developments

• October 2022- Lehry Instrumentation and Valves Pvt. Ltd., headquartered in Chennai, established a 30-crore non-ferrous integrated production facility near Chennai to manufacture lead-free brass valves for infrastructure and utility markets, according to the company's managing director Abbas S. Lehry.
• April 2023- VanZandt Controls/Eagle Automation, a leader in industrial valve automation, instrumentation, flow measurement, and controls, signed an agreement to acquire Midland, Texas-based Commercial Radio.