Industrial Valve Market: Oil & Gas End Use Industry Segment to Hold Maximum Revenue Share Throughout the Forecast Period: Global Industry Analysis (2012–2016) and Opportunity Assessment (2017-2027)
- Rep Id : XPLREP1589
- Published On : June, 2017
- No. of Pages : 360
- Category : Industrial Automation
- Publisher : Future Market Insights
Oil & Gas to dominate the Global Industrial Valve Market by end use
The demand for petroleum products has skyrocketed across the globe, both in developed and emerging economies. With the introduction of newer technologies, there has been growth in subsea oil and shale gas extraction in diverse regions such as North America and Europe. According to the U.S. Energy Information Administration's International Energy Outlook 2016 (IEO2016) and Annual Energy Outlook 2016, shale gas production comprised more than 50% of natural gas production in the country and it is anticipated to double by the year 2040 to 79 bcf/d by the year 2040. An increasing number of projects in the global Oil & Gas industry should bring about rapid momentum in the pipeline installation and construction industry. These pipelines are laid down over extremely long distances and fitted with a number of valves from the industrial valve market to regulate hydrocarbon flow.
Increased exploration activities for new sources of Oil & Gas to boost sector growth
There has been a noticeable spike in oil & gas exploration activities both offshore and onshore to cater to the ever-increasing need for oil & gas production. New refineries have been built while existing ones have been upgraded or modernised and this is expected to boost demand in the global industrial valve market. Countries in Latin America such as Argentina, Brazil, and Peru, in particular, have seen a massive boost in offshore O&G exploration activities. The industrial valve market growth is directly connected to these upstream and downstream activities. For e.g., Total SA has pledged to spend half a billion dollars over a period of 4 years to develop a shale gas field in Argentina as the national government has promised investors a minimum price.
Greater subsea activities to be a major driver of the industrial valve market
European nations such as Russia and Poland have been investing substantially in subsea exploration. Russia has also looked to the Arctic Circle to extract precious natural resources. The installation of such subsea stations and the processing of minerals along with the installation of temporary setups is predicted to fuel the growth of the global industrial valve market. According to a PennWell Corporation report, Nord Stream 2 AG contracted Allseas in 2016 for the Nord Stream 2 natural gas offshore pipeline in the Baltic Sea. These pipelines are forecast to expand the capacity along the Baltic route from Germany to Russia.
Decline in oil prices to be a key challenge for the Oil & Gas industry
The glut in oil prices has brought about an element of uncertainty in the Oil & Gas industry, leading to a pause in innovations and R&D activities. This directly impacts the industrial valve market, as Oil & Gas is the largest end-user of the industrial valve market. For the next few years, the chance of new projects being approved across different countries appears quite slim. This will likely hamper the profitable growth of the global industrial valve market.
China and India to drive the APEJ boom in the Oil & Gas industry
Rapid economic growth and rising disposable income has led to improved infrastructure and the need for personal mobility in the APEJ region. This should definitely help the APEJ industrial valve market. The Oil & Gas end use industry segment in the APEJ industrial valve market is anticipated to grow 1.6X over the forecast period. From a market valuation of around US$ 7.6 Bn in 2016, the Oil & Gas end use industry segment in the APEJ industrial valve market is forecast to rise to nearly US$ 12.7 Bn by the end of 2027, registering a CAGR of 4.7%. In terms of volume, it should be just below 89,000,000 pieces by the end of the forecast period from approximately 54,550,000 pieces in 2016 with a CAGR of 4.5%.