Global control valve market review and outlook

In July 2008, David Clayton, senior analyst of ARC Consulting Group, explained in the article "Control Valve Worldwide Outlook": According to the rapid growth of the global control valve market in 2006 and 2007, it is predicted that the global control valve market will maintain a compound annual growth rate of 6% in the next five years. Based on the global control valve market sales of 4.8 billion US dollars in 2007, the global control valve market is expected to exceed 6.4 billion US dollars by 2012.

Unfortunately, in the

first quarter of 2008, although there was high demand for control valves in developing countries and regions, such as China, India and the Middle East, mainly in the oil and gas industry, revenue growth for control valve suppliers in North America and Europe began to slow.

In 2008, Mr. Clayton noted that despite the strong growth opportunities in the current global control valve market, challenges remain. In many ways, control valve suppliers are facing the same opportunities and challenges as before. The strong growth of developing countries and regional markets provides an excellent opportunity for control valve suppliers to expand their business, but at the same time, how to establish a global supply and logistics system, how to develop new products and what new products to develop are all difficulties that control valve suppliers need to face and overcome. For example, many new petrochemical projects require large control valves that can withstand extreme temperature conditions and provide tight shut-off functions; There are also deep-sea oil operations, which require high-pressure control valves that provide effective opening thrust or sufficient torque.

In addition, with the continuous improvement of the degree of automation of modern production process, process

parameters have become an important indicator to judge the efficiency, working conditions and economic performance of the production process, and the role of control valves in continuous and discrete control, energy measurement, trade settlement, storage and transportation systems has become increasingly prominent. The precise control of control valves, multi-function and intelligent requirements are also increasing.

A highlight of the development of the automation industry in 2007 is the rise of wireless communication in industrial automation factory applications, wireless communication technology remote, mobile, anytime and anywhere control advantages dwarf the original trace control. Therefore, on the one hand, control valve suppliers actively develop DTMs (DigitalTV Monitor System) to work with data embedded diversified intelligent field devices designed based on PAM (Pulse Amplitude Modulation) solutions based on FDT (Formal Description Technique); On the other hand, control valve suppliers are considering vigorously developing wireless HART (Highway Addressable Remote Transducer) products.

In 2008, due to the strong growth of the control valve market in developing countries, control valve suppliers worked hard to expand their manufacturing capabilities to meet customer needs, and the control valve market maintained growth. In sharp contrast to 2008, due to the impact of the financial crisis, the number of control valve suppliers fell sharply in 2009, and control valve orders decreased. In the third quarter of 2009, Mr. Clayton remained optimistic that the global control valve market is expected to pick up in 2011.

Affected by the current global economic downturn, the development trend of the global control valve market has undergone tremendous changes. Over the past 4 years, companies that are more active and pursuing new business have grown faster and have benefited from the rapid growth of the market. Despite the economic downturn, many control valve suppliers once again find themselves in a market full of opportunities and less competition. Therefore, the ability of control valve suppliers to go out and acquire new business is an important way to expand, while maintaining the existing user base will be more important than ever.

In the past few years, the explosive growth of the control valve market has led to a sharp increase in handheld orders from control valve suppliers and increased production to meet market demand, and in 2009, when the recession and shipments declined, control valve suppliers had a large backlog of inventory. Leading control valve suppliers maintain healthy inventory levels and absorb excess inventory as soon as possible in the growth of control valve sales and after-sales service orders. However, due to the inherent complexity of the sales chain and the cyclical nature of orders, these backlogs are difficult to digest in a short period of time.

In the face of the recession of the world economy, Mr. Clayton emphasized that the oil and related industrial markets are still the growth points of the control valve; Developing economies continue to be the engine of growth in the global control valve market. Developing countries, such as China, India and Brazil, have also been affected by the global economic crisis, but their economic growth rates are still very high compared to other countries, maintaining the level of economic growth in 2008. Developing economies remain the major growth drivers for the global control valves market. Emerging economies such as the BRIC countries (Brazil, Russia, India and China), as well as the Middle East and Eastern Europe, will continue to support the growing control valve market.

The global control valve market needs to find demand from growing global consumption, which relies on a healthy capital investment and credit environment, solid market returns and intensive production demand. Only in this way can control valve suppliers cope with the rapidly growing energy demand and consumer demand of the control valve market around the world.