The global control valve market is characterized by the presence of many regional and local vendors. The market is highly competitive with all the players competing to gain market share. Increasing investments in water & wastewater industry and construction and upscale of nuclear power plants are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. It is crucial for the vendors to provide cost-efficient and high-quality control valves, in order to survive and succeed in an intensely competitive market environment.
The growth of the market vendors is dependent on the market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and improving services. Emerson Electric Co., Flowserve Corporation, IMI plc, Alfa Laval, Crane Co., Eaton, Curtiss-Wright Corporation, General Electric, Pentair plc, First Reserve, Velan Inc., Schlumberger Limited, SAMSON, Burkert Fluid Control Systems, and Metso Corporation are the major companies in the market, which compete in terms of availability, quality, price, and technology. They primarily focus on the development of control valve. Although the international players are dominating the market, regional and foreign players with small market shares also have a presence. The international players may strengthen their presence worldwide through acquisitions during the forecast period. It has also been forecasted that improvement of the global economic scenario combined with efforts to enhance infrastructure in emerging nations, is fueling the market growth, thereby making it an ideal time for the players to launch new control valve and increase their share in the global control valve market.
Baker Hughes, a General Electric company, launched becker control valves for the North America Natural Gas Pipeline and Distribution market. This strengthened the product offerings of the company
January 2019
Emerson Electric Co.
Emerson Electric Co. developed Cavitrol Hex anti-cavitation trim technology to reduce the vibration caused by cavitation, which is provided by Vee-Ball Rotary Control Valves. It offers improved performance in extreme environmental conditions while maintaining valve efficiency that results in increased safety
October 2018
Emerson Electric Co.
Emerson Electric Co. developed proportional pressure control valves that feature a digital communications interface for Industry 4.0 and IIoT Integration, which is cost-effective and provides reliable control and diagnostics that support predictive maintenance practices.
Date
Company Name
Development
June 2019
General Electric
Baker Hughes, a General Electric company, received a contract for the Duqm Refinery greenfield construction project to supply control and safety relief valves, which includes globe, butterfly, rotary eccentric plug valves. This helped the company increase its share in the global control valve market
May 2019
General Electric
Baker Hughes, a General Electric company, and Nelson Technologies Inc. (US) received a contract to provide low-noise control valves for the Grayslake pipeline interconnect station
April 2019
General Electric
Baker Hughes, a General Electric company, won a contract to provide control valves to Saudi Aramco’s which includes multi-stage 30” low noise 49000 series, V-Log globe valves for vent applications. This enabled the company to strengthen its global presence in the competitive market
June 2018
Metso Corporation
Metso Corporation signed a contract with the Government of China to supply 8,200 valves including ball valves, globe valves, segment valves, and butterfly valves for key pulp and paper customers in China. This has helped the company create a product appeal in the Asia-Pacific market
November 2017
Metso Corporation
Metso Corporation signed a contract with the Government of China to supply 2500 valves, including ball valves, segment valves, and butterfly valves for Chinese petrochemical customers in the oil & gas industry. This has helped the company increase its share in the global control valve market.
THREAT OF NEW ENTRANTS
Control valves are manufactured to suit various industrial end users for applications, such as oil & gas, energy & power, chemicals, and water & wastewater treatment. The capital required is moderate due to moderate research and development investments and low cost of manufacturing. The need to eliminate failure due to metal fatigue, incorrect assembly, and foreign debris increases the initiatives by the players to improve the quality of the products, which restricts the entry of new players. There are many existing manufacturers, especially the numerous regional manufacturers, who offer cost-effective products to end users. This restrains the entry of new players in the control valve market. Hence, the threat of new entrants in the global control valve market is expected to be low.
BARGAINING POWER OF SUPPLIERS
There is a high supplier concentration in the market due to the several local and international suppliers who offer raw materials, including steel, cast iron, and alloys at competitive prices. Furthermore, the cost of switching suppliers is low, which reduces the bargaining power of suppliers. Hence, the bargaining power of suppliers in the global control valve market is expected to low.
BARGAINING POWER OF BUYERS
There are various end-use industries where such valves are used, making the buyer concentration high. Furthermore, the impact of brand identity in the global control valves market is moderate. The cost of switching between providers is low as the buyers can choose from various manufacturers. Thus, the bargaining power of buyers in the global control valves market is expected to be moderate.
THREAT OF SUBSTITUTES
There are no close substitutes for control valves. So, the market players do not face much threat from substitutes, making the threat of substitutes low.
RIVALRY
There are numerous players, such as Emerson Electric, Schlumberger, and IMI, who develop high-quality control valves for efficient operations. The global control valve market is expected to grow at a significant rate with technological innovation and the end-use verticals favoring the manufacturers who offer advanced technology. Furthermore, there are many other key players, namely General Electric, Alfa Laval, and Eaton that are leading in the global control valve market. These players in the market are investing substantially in the global control valve market. Such factors are expected to make the intensity of rivalry in the global control valve market high.
