Oil and Gas Valves Market

Oil and Gas Valves Market: Booming Shale Exploration and Rising Deep-water Exploration Activities Bolster Revenues: Global Industry Analysis 2014 - 2018 and Opportunity Assessment 2019 - 2029

Oil & Gas Valves Market - Key Research Findings

  1. Global Oil & Gas Valves market size in 2018 - nearly US$ 11 Bn.
  2. The Oil & Gas Valves market is anticipated to grow at a CAGR of approximately 3% over 2019-2029.
  3. North America and Middle East & Africa are expected to remain the largest regional markets for Oil & Gas Valves
    • Middle East & Africa and North America are the prominent regions in the Oil & Gas Valves market due to the extensive oil & gas projects in the region. South Asia is expected to register robust growth in terms of CAGR over the forecast period. 
  4. Leading Industrial valves companies are focusing on expanding production facilities and establishing long-term service contracts with major E&P companies to stay competitive among their peers in the oil & gas valves market
    • In May 2016, Weir Group Plc. inaugurated its new valves and pumps manufacturing and assembly plant in Malaysia, close to Malaysia’s capital Kuala Lumpur. 
  5. The Downstream segment, in terms of application, is projected to dominate the oil & gas valves market over the forecast period
    • With a large number of pipeline projects underway across North America, Europe and Asia and with many refineries up for refurbishment and maintenance in the coming years, the downstream segment is projected to lead the demand for oil & gas valves 

Top 3 Factors Shaping the Global Oil & gas Valves Market

Recovering Oil & Gas Prices to Pave the Way for New Oil & Gas Projects

With efforts being made by major oil producing countries to counter the declining oil & gas prices, the oil & gas industry has witnessed a new breath of life in recent years. OPEC and non-OPEC countries came to an agreement in 2016 to cut down crude oil production levels to counter the supply-demand gap, which had a positive impact on oil prices.

Growing Onshore Pipeline Projects

Major E&P companies are expanding their portfolios by building new processing plants, pipelines, and production facilities. Pipelines play a major role in the transportation of oil & gas products from one facility to another, hence pipeline safety is of utmost concern for the companies, selection of apt oil and gas valves ensures better safety in such installation activities.;Major intra-country and inter-country pipeline projects are under development to meet the growing demand for oil & gas across North America, Asia, and Europe.

Emergence of CRA Alloy Valves

Offshore oil & gas exploration has seen a rapid increase in activity in the last century and is set to witness even higher activity in the coming years. Offshore is known for harshest of the environments and requires special materials to withstand high pressure and temperature, sour gas, CO2, and corrosion.

This has created demand for Corrosion Resistant Alloys (CRA) for pipelines, valves, umbilical and other offshore production and is fast gaining momentum due to its capability to counter subsea corrosive conditions. Hence, the use of nickel alloy and stainless steel alloys as CRA materials for valves is one of the prominent trends in the oil & gas industry today.

Oil & Gas Valves Market Structure Analysis

  • The global oil & gas valves market represents a significantly fragmented market; wherein, tier-1 companies hold a revenue share of around 30-35%.
  • Most of the players in the oil & gas valves market are strategically focusing on the South Asia and East Asia regions.
  • Market participants are diversifying and strengthening their production and distribution bases around the globe in order to gain traction in the global oil & gas valves market.
  • Schlumberger Limited, PARKER HANNIFIN CORP, Weir Group Plc., Metso Corporation and BHGE (BAKER HUGHES, a GE Company), Emerson Electric Co., and CIRCOR International Inc. are expected to hold around less than 20% of the global oil & gas valves market share.
  • Key comapnies are striving to enhance their footprints by acquiring small local players in specific regional markets. The oil & gas valves market is dominated by key organized players who are focused on advancements towards consolidation with acquisitions of small- and medium-sized local players and other strategic mergers.
  • In November 2018, Baker Hughes, a GE company, inaugurated a new steam test facility in Naples, Italy. This was done to focus on the scope and capacity of the plant, which includes a full range of consolidated safety valves and masoneilan control valves.
  • In June 2018, General Electric secured an important contract from Chevron Australia to provide subsea production equipment.
  • Small-sized players in the oil & gas valves market are focused on developing newer, low-cost solutions in order to compete in domestic markets.

Oil & Gas Valves – Adoption Surges in Line with Pipeline Projects

The oil & gas sector is in a period of massive transformations. The number of pipeline projects in OECD countries is on the rise. Valve manufacturers are increasingly vying to tap opportunities entailed by these projects – developing unique techniques, identifying potential risks, and benchmarking competitors’ offerings – to be ready for the imminent rise in adoption.

Market Set to Grow 1.4x between 2019 and 2029

Valve sales, ensued from aftermarket valve replacements and combined cycle gas turbine facilities, have witnessed a steady rise. Oil & gas valves manufacturers have directed their efforts to uptake the opportunities paved by rising onshore exploration and shale gas production activities.

Developing Markets – Goldmine of Opportunities for Stakeholders

Emerging economies present potential opportunities for stakeholders in the oil & gas valves industry. Rising number of Greenfield projects and brownfield activities, to meet growing demand for gasoline, has further paved lucrative avenues for oil & gas valve manufacturers in the region. A key trend, adding to the opportune potential of developing markets for the market stakeholders, is surging number of contracts between oil companies and equipment manufacturer

The Broader Perspective

Leading oil & gas valve manufacturers are developing enhanced solutions to lower the pressure from end-users. The rapid rise in globalisation of clients has prompted leading stakeholders to enter into strategic partnerships with well-established suppliers, for keeping pace with demand.

How Growth will Unfold

Oil & gas manufacturers are on their mark to uptake opportunities in downstream operations. Adoption remains steady in upstream operations, while demand for oil & gas valves in midstream applications will grow relatively faster.

OIL AND GAS VALVES MARKET TAXONOMY

The global oil & gas valves market is segmented in detail to cover every aspect of the market, and present a complete market intelligence approach in front of the reader.

By Product Type

  • Gates
  • Globes
  • Balls
  • Butterflies
  • Checks
  • PRVs
  • Others

By Size

  • 0.25 to 8 inches
  • 8 to 20 inches
  • Above 20 inches

By Body Material

  • Cast
  • Forged

By Application

  • Upstream
  • Midstream
  • Downstream

Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Middle East & Africa

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