Global Gate Valve Market - Growth, Trends, and Forecasts (2022 - 2027)

The Global Gate Valve Market is expected to register a CAGR of greater than 4.1% over the forecast period of 2022 to 2027. Rapid urbanization and industrialization happening across various parts of the world, along with the rising demand for oil and natural gas exploration operations, are positively influencing the growth of the gate valve market.

Gate valves are multi-turn valves, among the industry's most used valves. Gate valves find wide usage in on/off/isolation applications in oil & gas (pipeline service and wellhead), power generation (including slurry service with knife gate designs), marine and mining, and general industry. Gate valves perform well for liquids, gases, and slurries, including fluids with entrained solids.

Key Highlights

• In specific valves, gate valves are the most widely used because they are available in a range of sizes from approximately 1-inch to more than 60-inches, with a wide selection of end connections and pressure ratings. The leading chemical-producing countries, including the United States, Germany, Russia, China, Japan, United Kingdom, Italy, France, India, Brazil, etc., are expected to drive the demand for gate valves owing to these valves to offer numerous advantages as compared to other valve types.
• The demand for gate valves is more in the Asia-Pacific region. The growth in the area is mostly due to a rapid push for urbanization and rising populations. For instance, according to the State Council of the People's Republic of China, the urbanization rate of permanent residents in China will reach 64.72% in 2021. Also, Valves designed for water and wastewater are another significant market development in the Asia Pacific region.
• To meet the growing demand in various regional markets around the world, manufacturers are concentrating on technological development and product innovation. During the forecast period, the gate valve market is anticipated to be stimulated by improvements in gate valve features such as friction reduction and pressure management, as well as ongoing improvements in valve efficiency.
• Along with this, manufacturing plants globally are also joining the digital transformation trend. With smart gate valves, companies can carefully monitor, analyze, and manage valves and related equipment based on actual conditions. This may also show promise for gate valve maintenance. A smart gate valve could respond to its health, advising of potential issues or valve failure before it happens because preventative care is important to keep plants online and contributes significantly to the gate valve market. With multiple companies switching to these smart valves, such trends also impact the market's growth.
• However, increasing volatility in raw material prices and high gate valve maintenance costs are expected to restrain market growth during the forecast period. The increasing volatility of raw material prices has an impact on manufacturers' ability to produce gate valves based on specific requirements. Companies, on the other hand, are increasing their investment in R&D for cost-effective technology to reduce the cost of gate valves.
• Moreover, the COVID-19 pandemic hugely impacted the gate valve industry. As industrial manufacturing companies were grappling with the remarkable effect of the pandemic and the oil and gas industry was also operating at limited capacity, the demand for gate valves slowed down due to slow economic activity across various sectors. However, the market is expected to gain traction gradually with the resumption of economic and industrial activities at a full pace.

Key Market Trends

Rapid Industrialization is Driving the Market Growth

• The adoption of gate valves has subsequently risen across all production sites globally. These are often available in large capacities to efficiently handle heavy and viscous slurries, grease, oil, paper pulp, varnish, and wastewater flows. Moreover, as most of the existing oil and gas industries are running short on maintenance operations, the requirements for maintenance operations are creating more opportunities for maintenance service providers in the oil and gas industries, thereby boosting the demand for gate valves.
• The industrial sector has expanded significantly worldwide since the start of the industrial revolution. Numerous factors, such as urbanization and the rising consumption of goods produced industrially, are responsible for this growth. According to the Federal Reserve, total industrial production in the United States decreased by 0.2% in June 2022 but advanced at an annual rate of 6.1% for the second quarter.
• The growth of the industrial sector has made it one of the major pillars of any country's GDP. For instance, according to the World Bank, the value added by the manufacturing sector to the GDP of the European Union stood at 15% in 2021. Also, the presence of various industrial establishments is further supporting the growth of the industry. Germany is characterized by one of the world's largest chemical industries. In 2021, the country recorded around 3500 chemical companies operating. As the chemical industry is among the major consumer of gate valves, the demand is expected to grow in the country.
• The growth of the industrial sector, in turn, is driving the energy demand. For instance, according to Energy Information Administration (EIA) estimates, in July 2022, about 98.8 million barrels of petroleum and liquid fuels was consumed globally. As the oil & gas industry is among the major consumer of gate valves, such trends are expected to support the growth of the studied market.

Asia Pacific to Witness the Significant Growth

• Investments in pipeline infrastructure in the oil and gas sector in downstream applications will likely increase the installation of gate valves across Asia Pacific countries such as India, China, and Japan. Oil and gas exploration activities in offshore areas are fast-growing in tandem with rising energy demand, another important growth driver for the gate valve market.
• This is further supported by increased activity across the sectors that support oil and gas exploration activities. For instance, the operation of China's first intelligent factory for producing offshore gas and oil extraction equipment started in June 2021.
• In February 2022, Russia and China signed an agreement according to which Russia was awarded a 30-year contract to supply gas to China via a new pipeline. As per the agreement, Gazprom, the state-owned energy corporation of Russia, will supply Chinese state energy major CNPC with 10 billion cubic meters of gas annually.
• Moreover, water and wastewater are another major industry driving the demand for gate valves in the region. The increasing urbanization rate in various countries significantly investments in the pipeline infrastructure. For instance, in 2020, the government of India allocated INR 3.6 trillion (USD50 billion) to the Jal Jeevan Mission to provide piped water to all households in the country by 2024.
• Similarly, the same demand has been observed in other Asian countries, which is projected to fuel the expansion of the studied market in the Asia Pacific region throughout the forecast period. For instance, Australia's National Water Grid Connections announced in January 2022 that it will support approximately 40 water projects, including the development of off-stream storage dams and recycled water agricultural systems. Such expansion will boost the demand for gate valve in the region.

Competitive Landscape

The Global Gate Valve Market is competitive and consists of several players like XHVAL, Crane Co., Curtiss-Wright Corporation, Flowserve Corporation, IMI Critical Engineering, ITT INC., KITZ Corporation, and many more. The companies are increasing their market share by forming multiple partnerships and launching new products into the market.

• July 2022 - AVK UK launched its new PE tail resilient seated wedge gate valve. The AVK Series 36 polyurethane (PE) tailed Resilient Seated Gate Valve enables customers to design a fully welded PE pipe system up to 630mm. The concept is widely applied in Europe and is well-established in the UK gas industry. The integrated valve installations provided by the valve can be 100% leak-free.
• September 2021 - SPM Oil & Gas, a leading systematized pressure pumping and pressure control equipment and services provider in Dubai, announced the availability of its new KOP AM20 Series Gate Valves. According to the company, the KOP AM20 Series Gate Valves significantly reduce NPT and the risk of catastrophic Well loss while lowering inventory costs.

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