Market Trends of APAC Valves Industry
This section covers the major market trends shaping the APAC Valves Market according to our research experts:
Oil & Gas Industry Expected to Hold a Significant Market Share
- Over the forecast period, growing demand for valves in the oil & gas sector will drive growth in the Asia-Pacific valves market. Rising offshore oil and gas projects across the region are expected to drive growth in the valve market over the forecast period.
- The government is focusing hard on increasing the country's manufacturing and production capacity and providing basic life facilities to its citizens through improved distribution systems. Across the region, new oil and gas distribution systems have been constructed.
- For instance, the Indian Oil Corporation has announced that it will invest INR 7000 crore in new gas distribution projects by the end of 2022.
- Furthermore, in November 2021, Indian Oil, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited announced the Model Retail Outlet Scheme launch and the Darpan petrol pump digital customer feedback program. These three oil PSUs have collaborated to open model retail outlets to improve service standards and amenities across their networks, serving over six crore consumers daily. which will further drive the market growth.
- In July 2021, the government implemented several policies to meet rising demand. It has permitted 100 % Foreign Direct Investment (FDI) in many sectors, including natural gas, petroleum products, and refineries. Furthermore, as evidenced by the presence of Reliance Industries Ltd (RIL) and Cairn India, it attracts both domestic and foreign investment.
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India is Expected to Register a Significant Growth
- India is one of the fastest-growing countries in terms of manufacturing sectors and machinery, giving rise to the need for valves. The government provides benefits to companies setting up manufacturing units. It also outlines various policies to boost the manufacturing sector. For instance, India outlined a plan in August 2021 to reach its goal of USD 1 trillion in manufactured goods exports.
- The growing power demand also generates growth opportunities for valve vendors in the Indian market. According to the CEA's 19th Electric Power Survey, India's total installed power generation capacity is expected to reach 619 GW by the end of FY27. Peak electricity demand has been estimated to be 226 GW in FY22 and 299 GW in FY27.
- In light of rapid industrialization and rising incomes, India, which has over one billion people, has established aggressive clean-energy targets to reduce pollution and combat climate change while meeting rising electricity demand. Prime Minister Narendra Modi announced at the United Nations Climate Change Conference in Glasgow that India would install 175 gigatonnes (GW) of renewable energy by 2022, up from 100 GW now, and 500 GW of non-fossil power by 2030.
- Further, the increasing emphasis on recycling wastewater is also expected to generate demand for valves across the country. For instance, four sewage treatment plants (STPs) have been set up in Patna, and As a result, it provides a long-term solution for the disposal of waste liquid generated by households. Moreover, in July 2022, the Gujarat government announced to give in-principle approval for works worth INR 118.12 crore for STPs of 73.98 MLD capacity in nine municipalities of Gujarat.
- Hence, the growing investments across various sectors in the country are expected to drive the demand for various valves, thereby boosting the overall market demand over the forecast period.
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