Market Trends of Global Butterfly Valve Industry
This section covers the major market trends shaping the Butterfly Valve Market according to our research experts:
Oil & Gas Sector to Hold Significant Market Share
- Valves used in the gas and oil fields must perform well throughout a well's operation, as most oil and gas industry operations are exposed to harsh conditions. The operating conditions can sometimes be cryogenic; with temperatures below -162 degrees, the temperature of oil rigs and wells may also become extreme. The powerful features and heavy-duty ability of Butterfly Valves, especially Triple Offset Valves (TOVs), make them ideal for non-critical and critical upstream oil & gas applications.
- The growing consumption of petroleum products, especially oil & gas, is driving investments in pipeline infrastructures to transport the oil from one place to another. This in turn is expected to witness an increase in demand for valves. For instance, in September 2021, Enbridge Inc announced that its Line 3 pipeline replacement project would begin operating on October 1. The reported USD 8.2 billion project will enable Enbridge to double its capacity to 760,000 barrels per day on the 1,765 km-long pipelines.
- Furthermore, according to IEA, the global oil consumption is expected to be 104.1 mb/d by 2026. The petrochemical industry is expected to remain a pillar of growth over the forecast period. LPG, Ethane, and naphtha together account for 70% of the projected increase in oil product demand by 2026. Such trends are expected to support the growth of the studied market during the forecast period.
- Increasing investment in oil & gas pipeline infrastructure is also supporting the growth of the studied market. For instance, according to the U.S. Energy Information Administration,
the Federal Energy Regulatory Commission (FERC) approved three projects intended to increase U.S. natural gas exports via pipeline and as LNG, In the first quarter of 2022.
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Asia Pacific to Witness Significant Growth
- Asia Pacific region is either home or an important destination to some of the biggest industries operating globally today. The transformation of the industrial sector across the countries such as China, Taiwan, Japan, India, and South Korea has rapidly increased the demand for oil & gas and other petroleum products, which in turn is positively impacting the demand for butterfly valves. For instance, according to the National Bureau of Statistics of China, industrial production increased by 0.7% and 3.9% in May and June 2022, respectively.
- According to IBEF, Oil demand in India is projected to register two times growth to reach 11 million barrels per day by 2045. Similarly, the demand for diesel in India is expected to double to 163 metric tonnes by 2029-30. Natural gas consumption is also expected to grow by 25 billion cubic meters, registering an average annual growth of 9% until 2024. Such trends are expected to boost the demand for butterfly valves in the country significantly.
- Furthermore, the increasing urbanization rate across various countries of the Asia Pacific region is driving investment in the water & wastewater management industry which is another major consumer for butterfly valves. For instance, in April 2022, SUEZ announced that through a local joint venture, they were awarded a 30-year, build-and-operate contract for an industrial wastewater treatment plant in Changshu, China. The project has a total investment of EUR 37 million and a daily treatment capacity of 15,000-meter cubes.
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