Rising demand for digital technologies and need to upgrade existing refineries to offset COVID-19 impact on the sector, finds Frost & Sullivan
SANTA CLARA, Calif., June 25, 2020 /PRNewswire/ -- Frost & Sullivan's recent research, Analysis of the North American Industrial Valves Market, Forecast to 2026, predicts that this market will reach $7.45 billion by 2026 because of the growing potential of digital technologies, namely the Industrial Internet of Things (IIoT) and 3D printing, across industry verticals. Although the market is mature, rising demand for smart solutions and the need to upgrade existing systems to meet enhanced safety regulations will offer new opportunities for market participants.
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"Although prolonged geopolitical tensions and a bleak investment climate in North America have negatively impacted the sector, there are positive growth opportunities for the long term. These include the gradual integration of IIoT across asset-intensive industries and demand from end-user industries such as power generation to meet enhanced safety regulations," said Riti Newa, Industrial Research Associate. "However, in the short term, the market will be subject to sharp revenue declines amid the ongoing pandemic. The COVID-19 outbreak has impacted all end users, especially the oil & gas industry, as evident from the unprecedented decline in its demand. As the financial crisis intensifies due to the pandemic, new investment opportunities will be relatively low in 2020."
Newa added: "Market participants are responding to protracted market tensions and the gradual transition of end users to digital solutions by introducing new products such as smart valves, smart actuation and control products and automated fluid control systems to augment the use of IIoT. They are also shifting from a product-centric to a service-centric approach and are strengthening their service offerings to secure recurring revenue. Additive manufacturing is also expected to remain a key focus area for the industrial valves market due to the cost-effectiveness and flexibility of 3D printing. As requests from end users become more specific, solution providers will have to consider 3D printing to offer customized product lines."
Given the already mature market, industrial valve manufacturers should focus their efforts on growth strategies that would enable diversified product lines while integrating digital technology in market offerings.
For further revenue opportunities, industrial valve manufacturers should:
- Collaborate with digital solution providers and niche IoT companies to seamlessly integrate digital technologies into their product lines.
- Adapt and modify their product lines by partnering with system integrators and IT solution providers for digitally connected valve solutions with holistic data analytics.
- Invest in research and development (R&D) for smart software and data analytics platforms that can enable high-asset visibility and remote monitoring services for end users.
- Partner with 3D printing companies to acquire in-house expertise and infrastructure for 3D printing.
- Establish service lifecycle management and centers of excellence to ensure optimum client engagement with services provided.
Analysis of the North American Industrial Valves Market, Forecast to 2026 is part of Frost & Sullivan's global Industrial Automation Growth Partnership Service program.
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Analysis of the North American Industrial Valves Market, Forecast to 2026
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SOURCE Frost & Sullivan