Global Butterfly Valve Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Butterfly Valve Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Butterfly Valve Market is expected to grow by registering a CAGR of 5.9% during the forecast period. Factors such as growth in demand for automation in the process industries, increasing demand from the oil & gas industry, and growing industrialization are driving the growth of the studied market.

Key Highlights

• A Butterfly valve can be used in many different fluid services and perform well in slurry applications. The rising demand for Butterfly Valves can be strongly attributed to their availability in various material types, simple operation, and tight shut-off properties.
• Butterfly Valves are used in many diverse and demanding applications such as oil & gas, air, fire protection, high-temperature & high-pressure services, etc. The Valves are designed for functionality and reliability in many industries like agrochemicals, base, specialty, and fluoro chemical industries.
• The oil & gas industry is among the most promising sectors for adopting triple offset butterfly valves in various processes. Triple offset valves (TOVs), owing to their heavy-duty nature and ability to withstand demanding conditions, are among the most suitable solution for critical and non-critical upstream oil and gas applications that require positive isolation.
• Increasing demand for petroleum products across various parts of the world is expected to support the growth of the studied market. For instance, according to OPEC, Saudi Arabia, which is among the leading oil-producing countries in the world, exported about USD 286.5 billion worth of petroleum products in 2021.
• However, factors such as limited throttling service to low differential pressure, cavitation, and chocked flow that Butterfly valves are prone to may negatively impact the growth of the studied market.
• A notable impact of COVID-19 has been observed on the studied market. Disruption in the supply chain reduced demand across end-user industries such as oil and gas due to limited exploration and production activities. However, with the condition returning to normalcy, the market is expected to gain traction during the forecast period.

Key Market TrendsOil & Gas Sector to Hold Significant Market Share

• Valves used in the gas and oil fields must perform well throughout a well's operation, as most oil and gas industry operations are exposed to harsh conditions. The operating conditions can sometimes be cryogenic; with temperatures below -162 degrees, the temperature of oil rigs and wells may also become extreme. The powerful features and heavy-duty ability of Butterfly Valves, especially Triple Offset Valves (TOVs), make them ideal for non-critical and critical upstream oil & gas applications.
• The growing consumption of petroleum products, especially oil & gas, is driving investments in pipeline infrastructures to transport the oil from one place to another. This in turn is expected to witness an increase in demand for valves. For instance, in September 2021, Enbridge Inc announced that its Line 3 pipeline replacement project would begin operating on October 1. The reported USD 8.2 billion project will enable Enbridge to double its capacity to 760,000 barrels per day on the 1,765 km-long pipelines.
• Furthermore, according to IEA, the global oil consumption is expected to be 104.1 mb/d by 2026. The petrochemical industry is expected to remain a pillar of growth over the forecast period. LPG, Ethane, and naphtha together account for 70% of the projected increase in oil product demand by 2026. Such trends are expected to support the growth of the studied market during the forecast period.
• Increasing investment in oil & gas pipeline infrastructure is also supporting the growth of the studied market. For instance, according to the U.S. Energy Information Administration,the Federal Energy Regulatory Commission (FERC) approved three projects intended to increase U.S. natural gas exports via pipeline and as LNG, In the first quarter of 2022.

Asia Pacific to Witness Significant Growth

• Asia Pacific region is either home or an important destination to some of the biggest industries operating globally today. The transformation of the industrial sector across the countries such as China, Taiwan, Japan, India, and South Korea has rapidly increased the demand for oil & gas and other petroleum products, which in turn is positively impacting the demand for butterfly valves. For instance, according to the National Bureau of Statistics of China, industrial production increased by 0.7% and 3.9% in May and June 2022, respectively.
• According to IBEF, Oil demand in India is projected to register two times growth to reach 11 million barrels per day by 2045. Similarly, the demand for diesel in India is expected to double to 163 metric tonnes by 2029-30. Natural gas consumption is also expected to grow by 25 billion cubic meters, registering an average annual growth of 9% until 2024. Such trends are expected to boost the demand for butterfly valves in the country significantly.
• Furthermore, the increasing urbanization rate across various countries of the Asia Pacific region is driving investment in the water & wastewater management industry which is another major consumer for butterfly valves. For instance, in April 2022, SUEZ announced that through a local joint venture, they were awarded a 30-year, build-and-operate contract for an industrial wastewater treatment plant in Changshu, China. The project has a total investment of EUR 37 million and a daily treatment capacity of 15,000-meter cubes.

Competitive Landscape

The competition in the Global Butterfly Valve market is increasing as the demand for the valves encourages new players to enter the market. Furthermore, to further strengthen their presence in the market, the studied players are taking both organic and inorganic growth approaches. Some major players operating in the market include Emerson Electric Co., Flowserve Corporation, L&T Valves Limited, and Alfa Laval Corporate AB.

• July 2022 - Valworx released their new line of all stainless air-actuated sanitary butterfly valves. These all stainless sanitary butterfly valves feature Tri-Clamp ends for hygienic connections, and all materials comply with USDA, FDA, and 3-A standards. According to the company, these butterfly valves are suitable for pharmaceuticals, food, beverage, personal care, and pet care.
• July 2022 - To extend its versatile butterfly valve product range, Valmet launched Neles Q-Disc, a new high-performance feature to help flow balancing in control valve applications. One of its key benefits is that it helps to avoid oversized actuators for control valve packages and thus provides a more cost- and energy-efficient solution.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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