Abstract: This paper introduces the changes in the global control valve market and points out how control valve providers can cope with the financial crisis and the growth point of the control valve market.
In July 2008, ACC Consulting Group senior analyst David Clayton stated 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 US$4.8 billion in 2007, the global control valve market is expected to exceed US$6.4 billion by 2012 (see below). .
Unfortunately, in the first quarter of 2008, in the developing countries and regions, such as China, India and the Middle East, the oil and gas industry-based market has high demand for control valves, but the control valve Suppliers' revenue growth in the North American and European markets began to slow.
In 2008, Mr. Clayton pointed out that although the current global control valve market has strong opportunities for growth, the challenges remain. In many ways, control valve suppliers are facing the same opportunities and challenges as before. Strong growth in developing and regional markets provides an excellent opportunity for control valve suppliers to expand their business, but at the same time, how to build a global supply and logistics system, how to develop new products and what new products to develop. It is the difficulty that control valve suppliers need to face and overcome. For example, many petrochemical new projects require large control valves to withstand extreme temperature conditions and provide tight shut-off functions. In deep-sea oil operations, high-pressure control valves are required to provide effective opening thrust or sufficient torque.
In addition, with the continuous improvement of the automation of modern production processes, process parameters have become an important indicator for judging the efficiency, working conditions and economic performance of production processes. Control valves are used in continuous and discrete control, energy metering, trade settlement, storage and transportation systems. The role has become increasingly prominent. With precise control of the control valve, the requirements for versatility and intelligence are also increasing.
One of the highlights of the automation industry in 2007 was the rise of wireless communications in industrial automation plants. The advantages of wireless communication technology for remote, mobile, and anytime, anywhere control dwarf the original routing control. Therefore, the control valve supplier actively develops DTMs (Digital TV Monitor System) on the one hand to work with diverse intelligent field devices based on data designed based on the FDT (Formal Description Technique) based PAM (Pulse Amplitude Modulation) solution; On the one hand, control valve suppliers are considering the development of 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 strive to expand their manufacturing capabilities to meet customer demand, and the control valve market continues to grow. In sharp contrast to 2008, due to the financial crisis, the number of control valve suppliers declined sharply in 2009, and orders for control valves decreased. In the third quarter of 2009, Mr. Clayton was still optimistic that the global control valve market is expected to pick up in 2011.
Affected by the current global economic recession, the development of the global control valve market has undergone tremendous changes. In the past four years, companies that are more active and pursue new businesses have grown faster, and they have benefited from the rapid growth of the market. Despite the economic downturn, many control valve suppliers have once again found themselves in a market that is full of opportunities and less competitive. As a result, it is important for control valve suppliers to go global and gain new business, while maintaining an 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 the number of orders for control valve suppliers, increasing production to cope with market demand, and in the case of the economic downturn in 2009 and the decline in shipments, the control valve There is a large backlog of suppliers' stocks. Leading control valve suppliers will maintain a healthy inventory and digest excess inventory as soon as possible in control valve sales and after-sales service orders growth. However, due to the inherent complexity of the sales chain and the long-term periodicity of the order, these backlogs are difficult to digest in a short period of time.
In the face of the global economic recession, Mr. Clayton stressed that the oil and related industrial market is still the growth point of control valves; developing economies are still the engine of global control valve market growth. Developing countries, such as China, India and Brazil, have also been affected by the global economic crisis, but their economic growth rate is still very high compared to other countries, and they still maintain the level of economic growth in 2008. Developing economies are still the main growth driver for the global control valve 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 market for control valves.
The global control valve market needs to look for demand from growing global consumption, thanks to a healthy capital investment and credit environment, robust market returns and intensive production needs. Only in this way, control valve suppliers can cope with the upcoming rapid growth in energy demand and consumer demand in the control valve market worldwide.