Global Valves in Oil and Gas Industry Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Valves in Oil and Gas Industry Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Valves in the Oil and Gas Industry Market are expected to register a CAGR of 3.2% over the forecast period (2022 - 2027). Advancements in technology have shaped innovative solutions that can improve process plants to become increasingly more efficient through streamlining of their operations. As Oil and gas industry requirements evolve and change, suppliers of control valves and valve automation solutions are expected to continue developing products and processes that address these new challenges.

Key Highlights

• The growth of the valves market is driven by factors such as the increasing need for wireless/remote infrastructure to monitor equipment in various plants, along with an augmented focus on technology advancements propelling the application of smart valves, especially in the industrial sector. Major industries such as oil and gas are moving toward valve technology with embedded processors and networking capability to work alongside sophisticated monitoring technology coordinated through a central control station.
• Moreover, major countries in the Middle East have increased focus on the renovation of existing refineries and also the expansion of their oil refineries to meet the growing demand for crude oil. This is expected to result in increased investments in the pipeline and infrastructural development, which is expected to augment the demand for valves over the forecast period.
• The new valves designed in the market for the oil and gas industry comply with ASME and ASTM material standards for chemical strength across the globe. In addition, the valves also comply with ASME B1.20.1, ASME B16.11, and ASME B16.34, which are accepted across the globe. The standards ensure the quality and longevity of the valves life for the Oil and Gas industries.
• However, one of the major challenges for valves is the availability of alternate valves. For instance, globe, butterfly, and check valves are considered alternatives to gate valves as these valves control and regulate the flow of gasses by also handling high temperatures.
• Additionally, according to the International Energy Agency (IEA), in the OECD countries, the oil price was reduced by 40.6% from March to April 2020, nurturing concerns for oil and gas firms. Therefore, during the spread of COVID-19, companies in the oil and gas sector started experimenting with contemporary technologies and industrial automation to increase efficiency and revenue. This brought a positive impact on the market studied during the pandemic.

Key Market TrendsBall Valves is Expected to gain significant market share

• The Ball valve has a sealing ability and is ideal for regulating gases due to its sealing ability. The valves provide airtight seals for gas under pressure upto700 bars and temperatures up to 200 degrees Celcius.
• The rotation is provided with 90 degrees for full close or fully open and is considered the most inexpensive product for replacements and fresh installments. However, the ball valves are not used for corrosive fluids as it damages the product and brings in leaks in the oil and gas plants.
• The rising gas projects across the globe have increased innovations among vendors. For instance according to Baker Huges the number of US gas and oil rigs in operation at the end of May 2022 accounted to 727 compared to 698 in April 2022. Such growth in opeartions increases the demand for ball valves studied in the market.
• In August 2021, Dixon announced the launch of 2-piece stainless steel ball valves for the oil and gas industry that can replace 6 different common ball valve ranges. Such innovations reduce the burden of re-investments or service investments from the industries and drive the market studied.

Middle East and Africa to Dominant the Market

• The Middle Eastern region has been through massive changes and has landed more projects for the oil and gas industry. Some of the ongoing projects are Upper Zakum, a production capacity enhancement project that costs USD 21.8 billion. The project is expected to be complete by 2024, when Zadco increases the production capacity from 50,000 b/d to around 1 million b/d. Such instance increases the need for different types of valves in the industry.
• Similarly, Africa is also expected to gain huge demand for valves in its oil and gas industries owing to increased investments. For instance, in Tanzania, a Liquefied Natural Gas Liquefaction project is aimed to be completed by 2028 with an investment of USD 30 billion and is expected to begin in 2023. the project is expected to have a capacity to produce 10 million tons of LNG per year. Therefore driving the market in Africa.
• The demand for valves is driving partnerships in the region. For instance, in January 2022, AMPO POYAM VALVES signed a corporate procurement agreement with Aramco in the 6th edition of the In-Kingdom Total Value Add Forum to supply engineered valves as well as ad-hoc and added value services. AMPO has been in Saudi Arabia and has supplied more than 20,000 valves for strategic projects in the oil and gas industries. Therefore such developments are driving the market in the region.

Competitive Landscape

The global Valves in the Oil and Gas Industry Market are moderately fragmented due to many valve market players. Factors such as industrial automation and the advent of integrated Industry 4.0 with rising oil and gas projects to expand the production capacity worldwide are providing considerable growth opportunities to valve manufacturing industries.

• In November 2021, Dixon announced the launch of the new B5017 series butterfly valve for the oil and gas industry and other industries. The new series consists of valves with Vertical Canister Actuation, pull handle clamp end, and pull handle weld end.

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• The market estimate (ME) sheet in Excel format
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