The Global Butterfly Valves Market Anticipated to Generate a Revenue of $14,108.3 Million, Growing at a CAGR of 5.9% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
The global butterfly valves market is estimated to be valued at $14,108.3 million by 2028, surging from $9,028.1 million in 2020 at a noteworthy CAGR of 5.9%.
Impact Analysis of COVID-19 on the Butterfly Valves Market
The coronavirus outbreak in 2020 had a huge impact on companies all across the world. Artificial intelligence and other technologies have proven to be effective in controlling COVID-19's proliferation. The butterfly valves industry has risen rapidly in recent years; however, the market is likely to see a modest dip in 2021 as a result of the COVID-19 pandemic. This is due to the implementation of curfews by most governments, as well as the closing of enterprises and private and public companies around the world, in order to prevent the virus from spreading. As a result of which, there was a gradual decline in the production and the number of orders received for butterfly valves.
Global Butterfly Valves Market Analysis
Two major drivers of market expansion are growing industrialization and the rising trend of automation in the oil and gas industry. Butterfly valves are commonly used to remove crude oil and gas from refineries, oil terminals, and depots. They're also employed to boost the efficiency of industrial production processes. Furthermore, increased power generation investments in developing countries are expected to promote market growth. The rise of smart cities, which consume a lot of energy, has boosted the product's adoption rate even more. Butterfly valve market growth is likely to be fueled by other factors such as the usage of 3D printing technology to manufacture butterfly valves and the integration of the Industrial Internet of Things (IIoT) for performance improvements.
However, rising competition from domestic makers of butterfly valves, a major risk of cavitation and choke, and limited throttling are expected to stifle the butterfly valve industry's growth. Furthermore, control valve manufacturers are constantly performing research and development in order to design products that will match the changing needs of various industries. As a result of these reasons, several opportunities in the butterfly valves market are expected to arise over the forecast period.
Global Butterfly Valves Market, Segmentation
The global butterfly valves market is segmented based on type, application type, function type, end-user, and region.
Based on type, the butterfly valves market has been segmented into high-performance butterfly valves and lined butterfly valves of which the high-performance butterfly valves sub-segment is projected to generate the maximum revenue with fastest growth during the forecast period. The high-performance butterfly valves sub-segment is predicted to register a revenue of $9,116.8 million during the forecast period growing at a CAGR of 6.4%.
The high-performance butterfly valves sub-segment is likely to be the most lucrative over the forecast period because of the flow path, high capacity, and ability to pass solid and viscous media.
The application segment is further divided into centric and eccentric valves. The centric sub-segment of the global butterfly valves market is projected to have the fastest growth and it is projected to surpass $5,002.7 million by 2028.
The media going through the centric butterfly valve does not come into contact with the valve since the seat is designed as a sleeve or cartridge inside the valve. The zero offset (centric valve) butterfly valve can handle chemicals, coatings, food, some solids, and abrasive applications. The use of centric butterfly valves is expected to increase as a result of these benefits.
The function segment is further divided into on/off valves and control valves. The on/off valves sub-segment is predicted to have a dominating market share in the global market and is expected to register a revenue of $11,138.0 million during the forecast period with the highest CAGR of 6.1%.
For general and high-cycle applications, using intelligent, dependable on-off valve solutions will help to reduce life-cycle costs. Long-term tight shut-off, quick and safe operation, and decreased fugitive emissions are all advantages of these valve solutions that are driving the sub-segment’s growth.
The end-user sub-segment is further categorized into oil & gas, electric power, water & wastewater, chemical, and others. The oil & gas system sub-segment is anticipated to have a dominating market share in the global market and register a revenue of $5,638.1 million during the analysis timeframe.
The oil and gas industry is one of the largest in the world. The world's dependence on oil and gas is expanding as global economies and infrastructure continue to rely heavily on petroleum-based products. The oil and gas industry is now in strong demand for stainless steel butterfly valves. Electric stainless-steel butterfly valves are more efficient and provide a higher level of control than other types of valves.
The butterfly valves market for the Asia-Pacific region is projected to witness rapid growth. This market generated a revenue of $3,112.1 million in 2020 and is further projected to reach up to $5,316.2 million by 2028.
The Asia-Pacific butterfly valve market is predicted to be boosted due to expanding energy sources, rising pipeline transportation usage, increasing oil and gas reserves, increasing infrastructure projects due to rapid urbanization and industrialization, and other reasons.
Key Players in the Global Butterfly Valves Market
Some of the leading butterfly valves market players are –
- Emerson Electric Co.
- Flowserve Corporation
- Curtiss-Wright Corporation
- Cameron International
- Alfa-Laval Corporate AB
- AVK Group
- Crane Co.
- Weir Group
- KSB Group
- Velan Inc.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Butterfly Valves Market:
- Bargaining Power of Suppliers: The suppliers in the butterfly valves market are moderate in number as compared to the buyers. Several companies are working on research and development activities to avoid changing the supplier if there is a hike in the price of a particular material.Thus, there is less threat from the suppliers.
Thus, the bargaining power of the suppliers is moderate.
- Bargaining Power of Buyers: Buyers have moderate bargaining power because of the moderate number of market players compared to buyers.
Thus, the bargaining power of the buyers is moderate.
- Threat of New Entrants: Companies entering the butterfly valves market might face limited legal concerns and government barriers.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: There are many alternative products for butterfly valves. For instance, industrial valves, triple offset valves and others.
Thus, the threat of substitutes is high.
- Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players.
Therefore, competitive rivalry in the market is moderate.