Market Trends of India Industrial Valves Industry
Growing Demand in the Oil and Gas Industry
- The oil and gas industry includes offshore and onshore platforms for oil and gas exploration, production, and refining, as well as refineries, pipelines, gas pipelines, petrochemical units, and storage terminals. Industrial valves are used in upstream, midstream, and downstream applications in the oil and gas industry. The valves are used in long pipelines as compressors to keep the product moving. Valves will help to protect equipment while offering minimal restriction to the flow.
- India's oil and gas sector is amongst the country's eight core industries and plays a crucial role in influencing the decision-making of all other chief sections of the economy. As per the India Energy Outlook 2021 (IEA) report, primary energy demand in the country is likely to nearly double to 1,123 million tonnes (MT) of oil equivalent by 2040. The country is estimated to be one of the most significant contributors to the global non-OECD (Organization for Economic Cooperation and Development) petroleum consumption growth.
- According to BP PLC, oil production in the country has declined recently. In 2022, the oil production in the country stood at 29.7 million ton, compared to 34 million ton in 2021. However, oil consumption is significantly increasing in the country. In 2022, the country's oil consumption reached 5.15 million barrels, compared to 4.87 million barrels consumed in 2021. Thus, the demand for oil and gas is increasing in the country.
- Several companies have announced investments in starting oil and gas exploration projects to increase the crude oil production capacity of the country. For instance, in 2022, the oil and gas industry in the country attracted USD 25 billion in investments in exploration and production. Thus, oil production is expected to increase, driving the industrial valves market.
- Furthermore, in March 2022, the board of IOCL (Indian Oil Corporation Limited) approved plans to invest INR 72,820 million (~USD 932.6 million) for the development of the City Gas Distribution (CGD) network in nine geographical areas (GAs). Thus, the gas distribution network's increase is expected to drive the market for industrial valves in the country.
- Thus, the country's oil and gas industry growth is expected to drive the industrial valves market.
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Increasing Demand from the Power Industry
- The applications of valves in the power industry include boiler startup, feed pump recirculation, steam conditioning, and turbine bypass. For instance, the valves in the condensate system control and regulate the extra flow needed for a condensate pump that circulates fluid. In addition, valves are used to regulate the feedwater heater's deaerator level.
- Valves are used for boiler feed pump recirculation in the feedwater system in the power industry. In this scenario, the valve is crucial because it needs to be used in modulating and on-off services. Valves are also used in conventional systems for superheaters, turbine bypass, superheater bypass, etc. A modulating valve manages pressure. Such valves generate enormous demand throughout the power industry and will propel market expansion.
- India's power generation witnessed its highest growth rate in over 30 years in FY 2023. Power generation in India increased by 8.87% to 1,624.15 billion kilowatt-hours (kWh) in FY 2023. According to data from the Ministry of Power, India's power consumption stood at 130.57 billion units in April 2023.
- In India, various hydropower projects have started in recent years to further increase production. For instance, in January 2023, the Union Cabinet (CCEA) approved an investment of INR 26,410 million (~USD 315 million) for SJVN's 382 MW Sunni Dam Hydro Project. Thus, the construction of new hydropower plants will drive the demand for industrial valves in the country.
- Furthermore, as of 2022, India had 22 nuclear reactors in operation at seven nuclear power plants with a total installed capacity of 7,480 MW, which is only around 2% of the global installed nuclear capacity. The country wants to add over 25,000 MW of nuclear power generation over the next decade. The growing power generation from fossil sources and increasing installation of nuclear power are estimated to drive the valves market during the forecast period.
- Thus, the growth in the power industry in the country is expected to drive the market for industrial valves during the forecast period.
