Industrial valve sales to reach $50 billion by 2010
Sales of Industrial valves worldwide were just under $40 billion in 2004. By 2010, annual sales will exceed $50 billion reports the McIlvaine Company in its continually updated online, Industrial Valves: World Markets report.
A number of publicly held valve companies reported double-digit sales increases in the first quarter of 2005. The market will continue to grow for a number of reasons:
(1) Water infrastructure needs in developing countries. The move of the rural population to cities is greatly increasing the need for water and wastewater treatment systems. By 2010 this will be an $8 billion market for valves;
(2) Rapid increase in energy supply. China is increasing coal-fired electrical generating capacity at a rate in excess of 10 percent per year. India and other developing Asian countries are increasingly turning to coal for future electricity needs. A coal plant requires four times the investment in valves as does a combined cycle gas turbine plant;
(3) Industrial expansion in Asia. The need for cement, iron and steel, chemicals, pharmaceuticals and other products in Asia is continuing to result in increases in valve revenues;
(4) Synthetic oil development. While the valve requirements in refineries and oil and gas production are substantial, the valve requirements for synthetic oil are much greater. The Sasol complex in South Africa has more valves than any other facility in the world. It produces gasoline from coal. Larger versions of this plant are under development in China.
Tar sands, ethanol, oil shale, direct coal liquefaction, and even LNG are all applications requiring big valve investments.
The valve industry remains fragmented despite the many acquisitions and position of Tyco and other acquirers.
The top five valve companies have less than 15 percent of the world market. They are:
Tyco International
Flowserve
Emerson
Dresser, Inc.
Kitz
For more information on Industrial Valves: World Markets, click on: http://www.mcilvainecompany.com/water.html#N028 .
Bob McIlvaine
847-784-0012