Dedham, Massachusetts – Driven by strong project activity, the worldwide control valve market experienced double-digit growth in 2006. The worldwide market for control valves is expected to grow at a compounded annual growth rate (CAGR) exceeding 5% over the next five years. The market, which approached $4 billion in 2006, is forecasted to exceed $5 billion in 2011, according to a new ARC Advisory Group study.
The global control valve market is in the midst of a phase of unprecedented growth due to booming Greenfield plants in developing countries and exploding investment in oil & gas exploration and production. “Much of the growth in the forecasted period will occur over the next two years as new construction projects in Asia soar and the oil & gas market boom continues. Following this increase, ARC Advisory Group expects a short-term dip in global control valve sales as the period of breakneck growth comes to an end. Long term year-on-year growth is then expected to taper to traditional levels,” according to Senior Analyst David Clayton, the principal author of ARC’s “Control Valve Worldwide Outlook” www.arcweb.com/res/cvap.
Wireless Technologies Help Digital Positioner Adoption
According to ARC, adoption of wireless technologies is a means of providing customers a cost effective solution to connecting production assets, like valves, to asset management and control systems, and it opens up many possibilities for improved control and optimized production by adding more field data that was previously too costly. Many of the leading control valve suppliers are adding wireless connectivity to their digital positioner products, because wireless not only allows manufacturers to connect valves to their systems, but also serves as a justification for them to replace older pneumatic positioners with digital positioners. Control valve suppliers are increasingly collaborating with manufacturers and wireless standards bodies, such as SP100 and the Wireless HART initiative, to develop standards-based wireless digital positioners that fulfill customer needs and expectations.
The Middle East Overtakes China
Though China still represents significant growth opportunities, the Middle East has quickly become the regional market offering control valve suppliers the greatest growth potential. Suppliers can expect increasing growth opportunities in the Middle East due to its high concentration of oil & gas activities.
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