Valve market to reach $3 billion in 2003
By Staff -- Industrial Distribution, 4/1/1998
Mountain view, calif.--Driven by end user demand for new product applications, revenues for the valves and actuators market reached $2.7 billion in 1996, and are expected to climb to $3.2 billion by 2003.According to a study conducted by Frost & Sullivan titled "U.S. Markets for Industrial Valves and Actuators in the Process Industries," the product sector is gaining importance in the process industries, due to increased end-user demand for more efficient, technologically advanced equipment. As manufacturers strive to develop automated control devices to meet customers' needs, companies are beginning to wonder about the long-term impact this trend toward automation will have on the valve industry.
The key market trends in the valves and actuators industry are end-user demand for more customer service and for new product applications. When replacing a valve or valve system, end-users prefer an automated control device that integrates well with their plant design. According to the study, strict EPA regulations are obsoleting many older valve types, so the main growth is coming from the replacement of worn valves with new technologies.
The study also concludes that price competition and acquisitions are the major competitive threats to smaller market participants. Several major manufacturers have grown significantly by acquiring companies with good reputations for high product reliability, good distribution channels and industry niche recognition.
Another major opportunity for growth is in setting up more offshore production operations, which allows manufacturers to cut lead times when supplying products to international markets. In keeping with a recent survey conducted by Industrial Distribution, many large companies now say that at least 25 percent of their sales are international, and are optimistic about increased market penetration over the next five years.
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