The industrial valves category is anticipated to grow at a CAGR of 5.7% from 2023 to 2030. The growth in the category is mainly driven by the rising usage of valves in power, oil & gas, metalworking, and chemical industries. To keep up with the growing demand, valve producers must lower fabrication costs while keeping up with the industry’s trends and innovation. Innovations such as control valves, smart valves, automatic valves, and valves with integrated electronics are expected to drive the category demand.

Automatic valves encompassing electric, hydraulic, pneumatic, solenoid, and digital mechanisms are increasingly favored by manufacturing facilities seeking unmanned operations with precise flow control. The primary benefit associated with automatic valves lies in their advanced preventive maintenance capability, effectively reducing the frequency of operational disruptions compared to traditional valves.

The industrial Internet of Things consists of smart valves that have actuators mounted with digital valve positioners that can detect leaks and regulate flow rates. The positioner acts as an interpreter between the control system and the control valve assembly. The positioner receives signals from the control system and adjusts the air to the actuator. Further, the actuator moves the valve to the appropriate position. The positioner can also send feedback received from the valve stem or shaft.

The future of industrial valve manufacturing is anticipated to focus on eco-friendly practices and energy efficiency. Valve suppliers can contribute to the reduction of carbon footprint by designing it with low energy consumption and improved leak detection capabilities. Sustainable processes such as waste reduction and recycling will also contribute to the industry’s greener future.

Order your copy of the Industrial Valves Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The production of industrial valves involves the manufacturing of valve bodies, stem, and seat. These parts are produced by the casting method. Some manufacturers also use the forged method, which involves cutting & forging, trimming, sandblasting, machining, and surface treatment. Raw material, labor, machinery, land, utility, transportation, and others are some of the key cost components in the production of industrial valves. Raw materials such as cast iron, ductile iron, carbon steel, stainless steel, alloy steel, and others are used to manufacture valves. In 2021, the global price of cast iron was between USD 0.06 – USD 0.07/lb. In 2021, the prices of both raw materials (iron ore and steel) increased due to which valve manufacturers had to hike prices to keep up with the rising production and distribution costs.

Italy, Spain, and India are the hubs of valve manufacturing. In 2023, the prices of industrial valves in China were between USD 20 – 1000 per piece. In June 2023, the prices of valves in the U.S. amounted to USD 22,161 per ton. In 2021, China, Germany, and the U.S. were the top valves exporting countries.

Suppliers of raw materials and components may have some bargaining power, especially if they provide specialized materials or components. However, the industry often has multiple suppliers, reducing dependency on any one supplier. Additionally, backward integration is possible for some valve manufacturers, reducing supplier power.

In terms of industrial valve manufacturing, the hybrid model is a popular engagement model in the category, combining in-house and full-service outsourcing. Some suppliers opt for a partial outsourcing model. Companies outsource operations such as raw material procurement, and transportation services. Companies employ an in-house team for a complete manufacturing line from designing valves, assembly lines, and quality testing which can be beneficial for the company. Developing a strong relationship with suppliers of raw materials and evaluating suppliers with experience and expertise in valve manufacturing, range of products offered, compliance with certifications, and industry standards such as ISO, API 600, and others, customization capabilities, after-sales support, and service are the best sourcing practices in the category.

Industrial Valves Procurement Intelligence Report Scope

• Industrial Valves Category Growth Rate: CAGR of 5.7% from 2023 to 2030

• Pricing growth Outlook: 5% - 6% (annual)

• Pricing Models: Product-based pricing, Competition based pricing

• Supplier Selection Scope: Cost and pricing, range of products, customization offer, experience and expertise in valve manufacturing, geographical presence, and compliance

• Supplier selection criteria: Product range offered, product customization offered, quality, time taken to manufacture, delivery option, technology used, safety and environmental compliance, location and presence of supplier, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Browse through Grand View Research’s collection of procurement intelligence studies:

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Key companies profiled

• AVK

• BEL Valves

• XHVAL

• PetroValve

• Flowserve

• KSB

• KITZ Corporation

• Velan

• Bray International

• Pentair