A Bleak Investment Outlook and Prolonged Trade Tensions in the United States Accounted for the Subdued Market Activity
Prolonged geopolitical tensions and a bleak investment climate in North America have negatively impacted the growth of the North American industrial valves market. The market is mature, and it comprises saturated end-user industries, such as oil and gas (O&G) and power generation. After a brief reprieve in 2018 due to the recuperation of the O&G industry, the start of the US-China trade war triggered market uncertainty in North America, further dampening the demand. However, the gradual integration of Industrial Internet of Things (IIoT) across asset-intensive industries and the need for component-level smart solutions in fluid systems are expected to augur well for valve systems. During the forecast period (2010-2026), the demand for smart solutions from both process and non-process industries is slated to sustain demand for industrial valves. Additionally, end-users such as O&G and power generation have aging assets that should be refurbished to comply with stringent safety standards. Therefore, replacement sales in these industries will boost market demand in the long term. However, in the short term, the market will be subject to sharp revenue declines amidst the COVID-19 pandemic. The outbreak has impacted all the end-users, especially the O&G industry, as is apparent from the unprecedented decline in its demand. As the financial crisis intensifies due to the pandemic, new investment opportunities will be relatively low in 2020.
Market participants are responding to protracted market tensions and the gradual transition of end-users to digital solutions by introducing new products to augment the use of IIoT in their solutions. As the industrial valves market is fragmented and comprises only a few niche participants, the major competitors use inorganic growth strategies, including acquisitions and partnerships, to attain leadership. Companies are strengthening their product and technology offerings through such acquisitions. They are also shifting from a product-centric to a service-centric approach. Solution providers are using digital solutions to support the automation of maintenance and repair services, asset monitoring, and cloud analytics. With short-cycle maintenance, repair, and overhaul (MRO), there is a growing need for companies to strengthen their service offerings to secure recurring revenue. Additive manufacturing is also expected to remain a key focus area for the industrial valves market due to the cost-effectiveness and the flexibility of 3D printing for valves manufacturing. As demand from end-users becomes more specific, solution providers will have to consider 3D printing to customize and differentiate product lines to address market demand.
Key Issues Addressed
- Is the market growing? How long will it continue to grow, and at what rate?
- Who are the key end-users, and what are the end-user trends that will be driving the market?
- How will the product and end-user market segments change over the forecast period?
- What are the regional and global trends that will impact market revenue?
- What does the competitive environment look like? Who are the major industrial valve vendors?
- Are system vendors well-structured to capitalize on current market trends? What are the major growth opportunities in the industrial valves market?
