EXPANSION VALVES MARKET: KEY INSIGHTS
- The global expansion valves market surpassed US$ 10 Bn in 2019.
- Rising infrastructural development projects in commercial and residential spaces would be the chief growth driver.
- Manufactures continue to eye the automotive industry for lucrative prospects.
- Thermal expansion valves (TXV) would be a key value contributor; electronic expansion valves (EXV) to garner rapid traction.
- East Asia would represent the most lucrative opportunities; market in South Asia to accelerate.
KEY FACTORS SHAPING EXPANSION VALVES MARKET
High Demand for Electric Vehicles to Improve Expansion Valves Growth Prospects
The automotive industry has been a major end-use industry for players in the expansion valves market. Though thermal expansion valves have proven to be the preferred choice among OEMs, electronic expansion valves are gaining significant traction in the global market. This shift of preference is mainly observed in electric vehicles. Norway, China, Sweden, Iceland, Germany, the United States, and Japan have been at the forefront in deploying maximum number of electrical vehicles.
Regional governments have also been playing a major role in the transition of the automotive industry, from conventional-fuelled vehicles to battery-powered vehicles, in turn, creating opportunities for the global expansion valves market. China produced 43% of the global electric vehicles in FY 2016, while Norway accounted for 29% of the market share, and was followed by the Netherlands, which held 6.4% share of the global electric vehicle market.
Rebates for Energy-efficient Products & Practices to Boost Sales of Expansion Valves
Various governmental and non-governmental organizations across the globe offer rebates to refrigeration systems and equipment manufacturers for the integration of energy-efficient and green manufacturing techniques such as low GWP expansion valves. Energy Star, Environmental Protection Agency, U.S. (EPA), and the Department of Energy, U.S. (DOE) voluntary program, support businesses and individuals with rebates, and help in protecting the environment by setting high energy efficiency norms for refrigeration equipment.
These norms are widely accepted in Canada, Australia, Japan, and New Zealand. European Commission - the European Union’s executive body- has laid down the minimum energy performance (MEP) criteria for refrigeration systems and equipment manufacturers. These government initiatives related to energy efficiency are further expected to boost the demand for expansion valves for both, the first fit and retrofit segment, in the global expansion valves market.
Expansion of Cold Storage Capacity to Propel Market Growth
Over the last decade, there has been a significant expansion of retail stores and cold chain capacities. Many countries across the globe, especially China and India, are strengthening their cold chain infrastructure with the aim to reduce food wastage and meet growing consumer demand. Capacity expansion is especially being done on refrigerators and chillers that are used to store chilled and frozen products.
According to the Global Cold Chain Alliance, in India, refrigerated warehouse capacity doubled from 2008 to 2014. Thus, the exponential growth of cold chain capacities is expected to drive the demand for sub-components such as expansion valves in the coming years.
East Asia Expansion Valves Market to Maintain its Supremacy throughout Forecast Period
Both, in terms of volume sales and value, East Asia led the global expansion valves market, and is estimated to continue to do so over the projected period as well. In the global expansion valves market, India, China, and Thailand have been estimated as emerging countries presenting a wider market opportunity.
The global COVID-19 pandemic has put a majority of manufacturing and related activities on temporary downtime in China, where the outbreak originated. As the number of caseloads continue to surge, all industrial trade activities have been discontinued due to self-isolation regulations, resulting is labour shortages.
The manufacturing industry is at the front line, due to suspension of all ongoing projects and contracts. After the containment of the COVID-19 pandemic, the expansion valves market would witness a shift of manufacturing facilities from China to other Asia Pacific (APAC) countries such as India.
EXPANSION VALVES MARKET: STRUCTURE ANALYSIS
- Increasing spending on research & development for the launch of technological enhanced expansion valves is one of the primary strategies of tier-1 players in the global expansion valves market.
- The Danfoss Group, Sanhua, Fujikoki Corporation, Parker-Hannifin Corporation, and Emerson Electric Co. are prominent players with maximum tenure in the global expansion valves market.
- The global expansion valves market is estimated to be fragmented, owing to the presence of a large number of regional and in-house manufacturers. The expansion valves market is majorly driven by regulatory standards.
- Base Year - 2019
- Historical Period - 2015-2019
- Forecast Period - 2020-2030
- Market Value in 2019 - US$ 10.1 Bn
- Segments Covered - Product Type, Application, Installation, End Use, Material, Refrigerant, Working Pressure, and Region
- Regions Covered - North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa
- Key Companies - Emerson Electric Co., Sanhua, Fujikoki Corporation, OTTO EGELHOF GmbH & Co. KG, Castel S.r.l., TGK CO. LTD., Keihin, CAREL INDUSTRIES S.p.A., Danfoss Group, and Parker-Hannifin Corporation.
- Growth Drivers
- Upsurge in infrastructural development projects
- Expanding on-road electric vehicle (EV) fleet
- Increasing sales of refrigerators and chillers
Thermal Expansion Valves (TXV) to Fade Gradually
Thermal expansion valves (TXV) have been the conventional adjustable orifice throttling equipment in commercial refrigeration systems and air conditioning systems, globally. However, they will substantially lose their value share to electronic expansion valves (EXV), owing to better superheat control of the latter over a wide load range.
While TXVs are highly preferable among OEMs, swelling production and sales of electric vehicles (EVs) are widening the application radar of EXVs. FMI further highlights that, EXVs would showcase a CAGR over twice that of TXVs over the following decade.
EXPANSION VALVES MARKET TAXONOMY
Product Type
- Thermal Expansion Valves (TXV)
- Electronic Expansion Valves (EXV)
Application
- Air Conditioning
- Refrigeration
Installation
- New Sales
- Retrofit
End Use
- Automotive
- OEMs
- TXV
- EXV
- Aftermarket
- TXV
- EXV
- OEMs
- Industrial Facilities
- Commercial Buildings
- Retail Outlets and Warehousing
- Residential
Material
- Stainless Steel
- Copper
- Brass
- Others
Refrigerant
- R410A
- R407C
- R404A
- R134A
- R290
- R744
- R22
- CO2
- Glycol Water
- R1234YF
Working Pressure
- Up to 30 Bar
- 30 to 50 Bar
- 50 to 200 Bar
Region
- North America
- Latin America
- Europe
- South Asia
- East Asia
- Oceania
- MEA
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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