International valve markets

Interim memo

TABLE OF CONTENTS
1. SCOPE OF THE PROJECT
1.1 Introduction
1.2 Scope of the survey
2. THE WORLD ENVIRONMENT
2.1 Investment and the Valve Market
2.2 Information Technology
2.3 Globalisation
2.4 Privatisation
2.5 Mergers and Alliances
2.6 Petrochemical Production in Asia and the Middle East
2.7 Gas-Fired Power Generation
2.8 Synergy between Refining and Chemicals
2.9 Environmental Legislation
2.10 mpact of e-commerce on Procurement
3. VALVE AND ACTUATOR MARKET SUMMARY
3.1 Introduction
3.2 Industrial Valve Market Overview
3.3 Industrial Valve Market Summary
3.4 Reasons for Variations in the Demand
3.5 Gate, Globe Check Valves
3.6 Quarter-Turn Valves
3.7 Diaphragm & Pinch Valves
3.8 Safety or Relief Valves
3.9 Pressure Reducing Valves
3.10 Automated Valves
3.11 Sales of Automated Valves by Major Suppliers
3.12 Control Valves
3.13 On-Off Actuators
3.14 Not used
3.15 Import Markets by Valve Type
3.16 Not used
3.17 China as a Competitor in World Valve Markets
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3.18 Chinese Exports by Country of Destination
3.19 Exports of Valves by Taiwan, India and South Korea
3.20 East European Exporters of Valves
3.21 Mexico as a Supplier of Valves to the USA
4. ANALYSIS BY WORLD REGION
4.1 Oil & Gas Production
4.2 Oil Refining
4.3 Chemical Industry
4.4 Pulp and Paper
4.5 Power Generation
4.6 Mineral Mining and Processing
4.7 Food, Drink, Pharmaceuticals and other industries
4.8 Metal Manufacture
4.9 Marine
4.10 Other Industries
4.11 Water & Sewerage
4.12 Building Services
5. DEFINITIONS AND ABBREVIATIONS
6. REFERENCE DOCUMENTATION
ENCLOSURES
1. Charts
2. Fugitive emissions and the valve industry
3. Fluids handling
4. Emerging markets
5. Iranian projects
6. Water sewerage market
7. Materials
8. Safety relief valves
9. Notified bodies
10. European legislation
11. CE markings
12. Market news
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GENERAL REMARKS AND REFERENCES
This document, protected by national and international laws covering intellectual property, is confidential
and may not be reproduced or shown to third parties in whole or in part, nor may be used for purposes
other than the relevant ones.
The information or part of information contained in the present document has been reported in good faith
and with utmost diligence. Nevertheless, BEN shall not be held responsible for any inconvenience, losses
or damages that may directly or indirectly derive from the use of such information.
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1. SCOPE OF THE PROJECT
1.1 Introduction
The present document covers a thorough market assessment for industrial valves
performed by BEN on behalf of The Customer.
1.2 Scope of the survey
The Customer aims to develop new product lines within the frame of its current
scope of supplies and services.
To this extent Customerlooks forward to assess the size and the opportunities
offered by the current and projected market of industrial valves in the world.
1.3 Reference documentation
The present study has been based on the documentation listed under para 6.
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2. THE WORLD ENVIRONMENT
2.1 Investments and the Valve Market
World demand for industrial valves is forecast to increase 5.5% per year until 2007
(including price increases) to over US $60 billion. This represents an improvement
over the 1997-2002 period, reflecting accelerating macroeconomic growth in the
developing regions of Asia, Latin America and Eastern Europe.
Improving economic fundamentals - especially fixed investment levels - will bolster
most valve consuming sectors and strengthen underdeveloped infrastructures in
these regions.
As a result, primary energy consumption will increase, creating opportunities for
valve suppliers in the key energy production sector in the developing world.
The advanced nations of North America, Western Europe and Asia/Pacific (ie
Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea) comprise
mature markets for valves.
Although the valve markets in the USA, Japan and Western Europe will all register
gains that will lag the global average through 2007, all three will also see an
improvement in their respective markets over the performance of the 1997-2002
period.
Stronger demand prospects for more expensive automated valves and actuators
will also aid the overall valve markets in the USA, Japan and Western Europe.
Global demand for automatic valves will outpace that for conventional valves,
benefiting from the desire of process manufacturers to improve efficiency.
Industrial valve designs and technology are well established and well understood,
with product innovation tending to be evolutionary in nature.
Innovation occurs along such parameters as materials of construction (plastics,
ceramics etc) and productivity enhancement (eg improved electronic controls for
actuation).
The largest and most technically proficient valve manufacturing industries are
generally located in the developed nations, as evidenced by the fact that the USA,
Germany, Japan and Italy together accounted for over half of global valve
production in 2002.
However, China is rapidly becoming a major player (and net exporter).
China is the only country worldwide currently providing double-digit growth for
control valve suppliers. China’s control valve market is expected to grow at a
Compounded Annual Growth Rate (CAGR) approaching 11 percent over the next
five years. The market was $212 million in 2003 and is forecasted to be over $350
million in 2008 according to a new ARC Advisory Group study.

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