The global expansion valve market size is projected to reach USD 11.5 billion in 2024. It is estimated to surge at a CAGR of 4.2% during the forecast period ranging from 2024 to 2034. It is anticipated to attain a value of USD 17.3 billion by 2034 and is likely to showcase a Y-o-Y growth of 4.4% in 2024.
Thermal expansion valves (TXV), a leading product type of expansion valves or orifice tubes, account for a significant share of the industry in terms of volume. It is poised to dominate the industry with around 70% share and is set to surge at a CAGR of 3% through the forecast period.
Growth of the segment is attributed to their high efficiency in controlling refrigerant flow and maintaining adequate performance in HVAC and refrigeration systems. Their ability to adjust to load conditions and offer effective implementation results in their steady growth.
| Attributes | Description |
|---|---|
| Estimated Global Expansion Valve Market Size (2024E) | USD 11.5 billion |
| Projected Global Expansion Valve Market Value (2034F) | USD 17.3 billion |
| Value-based CAGR (2024 to 2034) | 4.2% |
Thermal expansion valves are substantially utilized and are therefore anticipated to generate a revenue of USD 11.4 billion by 2034. This growth is primarily attributed to the significant expansion of retail stores and cold chain capacities.
Several countries are enhancing their cold chain infrastructure to reduce food wastage and meet increasing consumer demand. Their primary focus is on broadening the capacity of refrigerators and chillers used for storing chilled and frozen products. This widespread adoption and infrastructure development drive demand for thermal orifice tubes, contributing to substantial revenue generation in the segment.
The residential building end-use segment holds a significant share in the industry, capturing over one-third of the value share in 2024. This dominance is driven by the increasing demand for efficient HVAC systems across homes, fueled by rising living standards.
The segment is poised to expand 1.3 times its current value by 2034, reflecting continuous growth in residential construction and upgrades. Enhanced energy efficiency requirements and a growing focus on sustainable living further boost the adoption of cutting-edge orifice tubes in residential buildings.
The table below presents a comparative assessment of the variation in the projected CAGR for the expansion valve industry over the semi-annual periods spanning from the base year (2023) to the current year (2024). The analysis of the compound annual growth rate exhibits the shifts in performance and divulges the industry’s revenue realization patterns.
The analysis helps businesses gain a better understanding of the growth trajectory over the period. The first half of the year, or H1, spans from January to June. The second half, H2 includes the months from July to December.
Numbers displayed in the table indicate the estimated CAGR over the semi-annual period starting from 2024 to 2034. The industry, in the first half (H1) of 2023 to 2033 is projected to surge at a CAGR of 4.2% followed by a slight decrease in the growth rate during the second half (H2), taking the CAGR to 4%.
| Particular | Value CAGR |
|---|---|
| H1 | 4.2% (2023 to 2033) |
| H2 | 4% (2023 to 2033) |
| H1 | 4.4% (2024 to 2034) |
| H2 | 4% (2024 to 2034) |
Moving in the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to surge to 4.4% in the first half (H1) and then dip to 4% in the second half (H2). In the first half (H1), the industry witnessed a surge of 20 BPS while in the second half (H2), growth is likely to remain unchanged.
Government Programs to Enhance Energy Efficiency Push Sales of Electronic Valves
Several government and non-government organizations across the globe provide refunds to refrigeration equipment manufacturers who use energy-efficient and environmentally friendly production processes.
Energy Star, for instance, is a voluntary program run by the Environmental Protection Agency (EPA) and the Department of Energy (DoE) that provides refunds to businesses and consumers. The program also helps conserve the environment by establishing high energy efficiency standards for refrigeration equipment.
The European Commission, as the executive body of the European Union has established minimum energy performance (MEP) guidelines for refrigeration systems. These government programs aimed at improving energy efficiency are likely to raise the demand for electronic expansion valves (EXVs) in the global market, for first-fit as well as retrofit applications.
Increasing Demand for Efficient Air Conditioning in Automobiles Creates Opportunities
The air conditioning system is becoming an essential feature in all types of automobiles. Increased demand for electric vehicles (EVs) is creating a rising demand for air conditioning, which further spikes the need for orifice tubes.
The annual mean air temperature of an urban heat island, which has a population of about a million people, is set to be about 5 degrees warmer than the surrounding rural areas. This is anticipated to augment the need for good air conditioning systems in vehicles.
The demand for private car rental services like Ola, Uber, and Lyft is set to grow, necessitating development. Increased competition among these taxi services is likely to surge the demand for these valves as key companies strive to improve consumer experience by integrating several features in their cars, including efficient air conditioning systems.
Increased efforts by manufacturers to improve vehicle comfort levels and surging global demand for automobiles are also likely to support growth.
Manufacturers are on the Lookout for Alternative Refrigerants to Reduce Pollution
Alternative refrigerants have the potential to save up to 30% of the energy utilized in the system. Areas like raw materials, however, require further research and development activities to create technologically enhanced refrigeration systems that are financially viable and competitive with traditional commercial refrigeration systems.
Regulatory organizations suggest using natural refrigerants and restricting the use of those containing hydrofluorocarbon (HFC) gases, often known as ozone-depleting chemicals. Natural refrigerants such as ammonia, propane, and carbon dioxide are effective and environmentally beneficial solutions that are abundantly available worldwide.
Several organizations across the globe are working to reduce the use of fluorine-based refrigerants including CFCs, HCFCs, HFCs, and HFOs, often known as synthetic refrigerants, which are a significant contributor to global warming. Natural refrigerants, such as carbon dioxide, ammonia, and hydrocarbons, are being promoted, and their use is predicted to surge over the forecast period.
Extended Longevity of Refrigerators to be Disadvantageous for Key Manufacturers
The dwindling availability of substitutes in the commercial and industrial refrigeration industry is creating a severe restriction for growth. These refrigerators have a life expectancy of seven-plus years. This is useful for consumers and end-users who are looking for longevity and durability in their devices. These extended dates, however, present a significant challenge to manufacturers and suppliers.
Increased durability and longevity of these refrigerators reduce the need for replacement, leading to a year-over-year decrease in production. This decline in production can affect the revenue and growth prospects for manufacturers. Consequently, as consumers benefit from durable products, key companies must meet the challenge of volume discounts and adapt their strategies to maintain profitability in the declining replacement industry.
The global expansion valve market size was USD 9.6 billion in 2019. It grew at a CAGR of 3.4% from 2019 to 2023 and was valued at USD 11 billion in 2023.
The growth of the market during the historical period was attributed to the rising demand for HVAC systems as well as innovations in refrigeration and air conditioning technologies. Manufacturers, during that time, were required to enhance system performance and reliability owing to the rapid expansion of urban areas.
Growing awareness of energy efficiency and environmental sustainability further led to the adoption of innovative expansion pipelines. The recovery of the automotive industry in the post-pandemic period also played a crucial role in the expansion strategy. Growth in the automotive industry is attributed to the high use of these valves in the vehicle’s air conditioning systems.
The gradual development of technology during this period was accompanied by continuous innovation and increased attention to regulatory compliance, enabling manufacturers to develop efficient and environmentally friendly products. Replacement products, however, dwindled in the commercial and industrial refrigeration segments as modern refrigeration provided long power generation.
The expansion valve market is projected to reach a value of USD 11.5 billion in 2024. It is predicted to rise at a CAGR of 4.2% through the assessment period to reach a size of USD 17.3 billion by 2034.
The growth is anticipated to be attributed to a rapid shift toward sustainability, increasing climate change problems, and rising requirements for energy-efficient HVAC systems. Emerging economies are anticipated to invest heftily in the development of their infrastructure, further increasing the demand for expansion valves.
Technological improvements, including the integration of IoT and smart manipulation systems in HVAC and refrigeration units, are projected to create new opportunities for key companies. These innovations are anticipated to lead to the development of state-of-the-art valves that are able to optimize device performance and decrease strength intake.
Despite these positive developments, producers may want to address demanding situations like fluctuating raw material costs and the need for continuous innovation to stay competitive. The industry is poised for steady growth in the forecast years, supported by technological improvements and a robust emphasis on electricity performance and sustainability.
Tier 1 companies comprise leading players with a revenue of above USD 100 million. These companies capture a significant share of 45% to 50% in the global market. They are typically characterized by high production capacity and an extensive product portfolio.
The leading companies are distinguished by their expertise in manufacturing various types of orifice tubes and a broad geographical reach that is underpinned by a robust consumer base. They provide several services by utilizing the latest technology and meeting regulatory standards. Prominent companies within Tier 1 include The Danfoss Group, Sanhua, Fujikoki Corporation, Parker-Hannifin Corporation, Denso, Hnaon, and Emerson Electric Co.
Tier 2 companies include mid-sized players with revenue ranging from USD 50 million to USD 100 million. They have a considerable presence in specific regions and highly influence the local market. These companies are characterized by a strong presence overseas and robust product knowledge.
Such industry players have access to good technology and ensure regulatory compliance. Renowned companies in Tier 2 include Castel S.r.l, CAREL INDUSTRIES S.p.A., Seungil Electronics Co., Ltd., SAGINOMIYA SEISAKUSHO, INC., TGK CO., LTD., and OTTO EGELHOF GmbH & Co. KG.
The section below offers organizations an overview on a country-by-country basis. It comprises a detailed analysis of the potential trends and opportunities in the industry. This country-specific examination of the dynamics is likely to help organizations understand the complex nature of the industry.
The analysis consists of key factors, potential challenges, and forecasts impacting the demand, production, and consumption of the product within each country. This section aims to help organizations make informed decisions and develop effective strategies tailored to individual countries.
India is projected to emerge as a dominating country during the assessment period with an estimated CAGR of 5.7%. China, South Korea, and Canada are set to follow behind to become the key countries with anticipated CAGRs of 5.1%, 3.8%, and 3.5%, respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 5.7% |
| China | 5.1% |
| South Korea | 3.8% |
| Canada | 3.5% |
| United States | 3.1% |
Germany’s expansion valve market is poised to exhibit a CAGR of 2.3% between 2024 and 2034, reaching USD 519 million by 2034. The country currently holds the most prominent share of Europe’s market, and the trend is likely to continue during the forecast period.
The steady growth can be attributed to several factors. Germany has a strong focus on its energy efficiency and sustainability. This drives the adoption of advanced HVAC and refrigeration systems that heavily rely on high-quality orifice tubes. The country’s rigorous environmental regulations and commitment to reducing carbon emissions further bolster demand for these energy-efficient components.
Germany has a robust industrial base and a unique manufacturing industry that creates a substantial demand for expansion valves in various applications. For instance, the automotive industry, a cornerstone of the country’s economy, continuously seeks efficient and reliable air conditioning solutions, spurring demand for innovative orifice tubes.
Germany is a leader in technological innovation and research. Their investment in developing smart HVAC systems as well as integrating IoT and automated controls, enhances the performance and efficiency of orifice tubes.
North America, with the United States as its dominant player, currently holds 80% of the expansion valve market share worldwide. This significant share is attributed to the advanced HVAC and refrigeration industries in the United States.
These industries have a high demand for efficient temperature control systems. The country’s market is anticipated to surge at a CAGR of 3.1% over the forecast period, reflecting steady economic growth and increasing emphasis on energy efficiency.
By 2034, the United States is projected to reach a value of USD 2,871.4 million. Factors such as stringent environmental regulations, the push for sustainable building practices, and continuous innovations in HVAC technologies contribute to this growth. The country’s leadership in these areas ensures its dominant position, propelling the overall regional market toward substantial expansion.
China is anticipated to undergo rapid industrial expansion and infrastructural development. The country, during the forecast period, is projected to account for 65% of the share in East Asia.
Industrial development in the country has been a significant driving force behind this growth. Continuous expansion in China’s industrial sector, particularly in manufacturing, construction, and automotive industries, is projected to surge the demand for efficient HVAC and refrigeration systems. Orifice tubes play a crucial role in regulating refrigerant flow and maintaining optimal performance in these systems.
The government's emphasis on environmental sustainability and energy efficiency has also led to the adoption of innovative orifice tubes to meet stringent regulations. With the increasing construction of commercial and residential buildings, the country has a growing need for reliable cooling and refrigeration solutions, further fueling the demand for orifice tubes.
China's burgeoning automotive industry, driven by rising consumer demand and government initiatives, requires orifice tubes for air conditioning systems in vehicles. This continues to propel the expansion of China, making it a pivotal consumer in the global market.
The section provides enterprises with insightful data and analysis of the two leading segments. Segmentation of these categories helps businesses gain a better understanding of the dynamics and invest in the beneficial zones.
Examination of the growth of the segments helps companies attain a better understanding of the trends, opportunities, and challenges. This analysis is likely to help organizations navigate the complex business environment and make informed decisions.
In terms of product type, thermal expansion valves (TXVs) are projected to dominate with a value CAGR of 3% from 2024 to 2034. By application, the air conditioning segment is anticipated to witness a CAGR of 4.1% in the same period.
| Segment | Thermal Expansion Valves (Product Type) |
|---|---|
| Value CAGR (2024 to 2034) | 3% |
The TXV segment’s dominance is attributed to their high efficiency in controlling refrigerant float and retaining ideal performance in HVAC and refrigeration structures. These valves are also preferred because of their ability to conform to varying load situations, enhance power efficiency, and ensure reliable operation.
The extensive adoption of thermal valves across diverse applications, including residential, commercial, and industrial sectors, contributes to their massive share. Their role in enhancing machine longevity and lowering operational costs also makes these a desired option in the market.
| Segment | Air Conditioning (Application) |
|---|---|
| Value CAGR (2024 to 2034) | 4.1% |
The air conditioning segment is predicted to account for a revenue of USD 10.9 billion by 2034. The segment is poised to rise at a CAGR of 4.1% during the forecast period. This significant growth is primarily driven by the increasing demand for air conditioning systems, particularly in developing countries.
Expansion of population across urban areas results in an increased demand for residential, commercial, and industrial cooling solutions. This boosts the demand for efficient air conditioning systems equipped with high-quality orifice tubes.
Technological innovations in air conditioning units, such as the high focus of companies on energy efficiency and environmental sustainability, further propel growth of this segment. Integration of smart technologies and IoT-enabled systems in air conditioning units enhances performance, energy management, and user control, bolstering the adoption of cutting-edge orifice tubes.
Strict environmental regulations and growing awareness of the need for energy conservation are prompting both manufacturers and consumers to invest in efficient and eco-friendly air conditioning solutions. This trend supports the steady growth of the air conditioning segment, making it a dominant application worldwide.
Key players in the industry include Emerson Electric Co, Sanhua, Fujikoki Corporation, OTTO EGELHOF GmbH & Co. KG, Castel S.r.l., TGK CO., LTD., and Keihin. These manufacturers are progressively investing in expanding their manufacturing facilities to stay ahead of the competition.
Developing novel and innovative valve designs with improved efficiency, wide operating ranges, and compatibility with several refrigerants is likely to be crucial to spur growth. There is a rising demand for user-friendly orifice tubes. Manufacturers are responding to this demand by enhancing their products for easy installation procedures, clear markings, and readily available technical support for installers and maintenance personnel.
Companies are constantly developing customized valves tailored for specific applications and end-uses, such as residential air conditioners and heat pumps. They are focusing on integrating electronic controls and communication capabilities in these valves.
This is likely to facilitate seamless integration with smart building management systems. Integration of IoT is likely to facilitate remote monitoring, real-time performance data analysis, and predictive maintenance strategies.
The development of self-modulating orifice tubes that automatically adjust the refrigerant flow according to system requirements is likely to further enhance efficiency. There is a growing demand for space-saving HVAC systems that necessitates the development of compact orifice tubes. These miniaturized valves facilitate efficient integration in modern air conditioning units.
Industry Updates
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2024) | USD 11.5 billion |
| Projected Market Size (2034) | USD 17.3 billion |
| CAGR (2024 to 2034) | 4.2% |
| Base Year for Estimation | 2023 |
| Historical Period | 2019 to 2023 |
| Projections Period | 2024 to 2034 |
| Market Analysis Parameters | Revenue in USD Billion |
| By Product Type | Thermal (TXV) and Electronic (EXV) expansion valves. |
| By Application | Air Conditioning and Refrigeration |
| By Installation | New Sales and Retrofit |
| By Type | Automotive, Industrial Facilities, Commercial Buildings, Retail Outlets and Warehousing, Residential |
| By Material Type | Stainless Steel, Copper, and Brass |
| By Refrigerant Type | R410A, R407C, R404A, R134A, R290, R744, R22, CO2, Glycol Water, R1234YF |
| By Working Pressure | Up to 30 bar, 30 to 50 bar, 50 to 200 bar |
| Regions Covered | North America, Latin America, Western Europe, South Asia, East Asia, Eastern Europe, Middle East & Africa |
| Countries Covered | United States, Japan, Germany, India, United Kingdom, France, Italy, Brazil, Canada, South Korea, Australia, Spain, Netherlands, Saudi Arabia, Switzerland |
| Key Players | Emerson Electric Co, Sanhua, Fujikoki Corporation, OTTO EGELHOF GmbH & Co. KG, Castel S.r.l., TGK CO., LTD., Keihin, CAREL INDUSTRIES S.p.A., Parker-Hannifin Corporation, Denso, Hanon Systems |
| Additional Attributes | Dollar sales by value, market share analysis by region, country-wise analysis. |
| Customization and Pricing | Available upon request |
Based on product type, the industry is divided into thermal (TXV) and electronic (EXV) expansion valves.
A few types of refrigerants are R410A, R407C, R404A, R134A, R290, R744, R22, CO2, glycol water, and R1234yf.
Two key installation-based segments are new sales and retrofit.
Stainless steel, copper, and brass are the three leading types of materials.
A few applications include air conditioning and refrigeration.
Based on working pressure, the industry is segmented into up to 30 bar, 30 to 50 bar, and 50 to 200 bar.
Industrial facilities, commercial buildings, retail outlets and warehousing, residential buildings, and automotive are a handful of end-users. The automotive segment is further segregated into OEM and aftermarket, both of which are further divided into EXV and TXV.
Information on key regions like North America, Latin America, Europe, South Asia, the Middle East and Africa, and Oceania is provided.
The industry is anticipated to reach a value of USD 11.5 billion in 2024.
The industry is projected to reach USD 17.3 billion by 2034.
Emerson Electric Co, Sanhua, Fujikoki Corporation, and Keihin are the key manufacturers.
Thermal and electronic are the two main types of expansion valves.
The industry is anticipated to rise at a CAGR of 4.2% through 2034.
Hawa Valves is one of the leading manufacturers in India.
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