Abstract: This paper introduces the changes of global control valve market, and points out how control valve suppliers cope with the financial crisis and the growth point of control valve market.

In July 2008, David Clayton, senior analyst of arc Consulting Group, explained in the article "control valve worldwide outlook": according to the rapid growth of the global control valve market in 2006 and 2007, it is predicted that the global control valve market will maintain a compound annual growth rate of 6% in the next five years, with the sales volume of the global control valve market in 2007 as the target It is estimated that the global control valve market will exceed US $6.4 billion by 2012 (as shown in the figure below).

Forecast growth chart of global control valve Market

Unfortunately, in the first quarter of 2008, developing countries and regions, such as China, India and the Middle East, had higher demand for control valves in oil and gas industry dominated markets, but the revenue growth of control valve suppliers in North America and Europe began to slow down.

In 2008, Mr. Clayton pointed out: Although the current global control valve market has strong growth opportunities, challenges still exist. In many ways, control valve suppliers are facing the same opportunities and challenges as before. The strong growth of developing countries and regional markets provides control valve suppliers with an excellent opportunity to expand their business. However, at the same time, how to establish a global supply and logistics system, how to develop new products and what new products to develop are the difficulties that control valve suppliers need to face and overcome. For example, in many new petrochemical projects, large control valves are required to withstand extreme temperature conditions and provide tight shut-off function; in addition, in deep-sea oil operations, high-pressure control valves are required to provide effective opening thrust or sufficient torque.

In addition, with the continuous improvement of modern production process automation, process parameters have become an important indicator to judge the efficiency, working condition and economic performance of the production process. The role of control valve in continuous and discrete control, energy metering, trade settlement, storage and transportation systems is becoming increasingly prominent. The requirements for precise control, multi-function and intelligence of control valve are higher and higher.

One of the highlights of the development of automation industry in 2007 is the rise of wireless communication in industrial automatic chemical plants. The advantages of wireless communication technology, such as remote, mobile, anytime and anywhere control, make the original routing control look inferior. Therefore, on the one hand, control valve suppliers are actively developing DTMs (digital TV monitor system) to work together with data embedded diversified intelligent field devices designed on the basis of PAM (pulse amplification modulation) solution based on FDT (formal description technology); on the other hand, control valve suppliers are considering vigorously developing wireless Hart (highway) Addressable remote transducer products.

In 2008, due to the strong growth of the control valve market in developing countries, the control valve suppliers strive to expand their manufacturing capacity to meet the needs of customers, and the control valve market keeps growing. In sharp contrast to 2008, due to the impact of the financial crisis, control valve suppliers decreased sharply in 2009, and control valve orders decreased. In the third quarter of 2009, Mr. Clayton is still optimistic that the global control valve market is expected to pick up in 2011.

Affected by the current global economic recession, great changes have taken place in the development trend of the global control valve market. Over the past four years, companies that are more active and pursuing new business have grown faster, and they have benefited from the rapid growth of the market. Despite the recession, many control valve suppliers once again find themselves in a market full of opportunities and less competition. Therefore, it is very important for the control valve suppliers to go out and get new business. At the same time, it is more important than ever to keep the existing user base.

In the past few years, the explosive growth of the control valve market has led to a sharp increase in hand-held orders of control valve suppliers, increasing production to meet the market demand. However, in the case of economic recession and declining shipment in 2009, there is a large backlog of control valve suppliers. Leading control valve suppliers will maintain healthy inventory and digest excess inventory in the growth of control valve sales and after-sales service orders as soon as possible. However, due to the inherent complexity of the sales chain and the long-term periodicity of ordering, it is difficult to digest these overstocked goods in a short time.

In the face of the recession of the world economy, Mr. Clayton stressed: the oil and related industrial market is still the growth point of the control valve; the developing economies are still the engine of the growth of the global control valve market. Developing countries, such as China, India and Brazil, have also been affected by the global economic crisis. However, compared with other countries, their economic growth rate is still very high, still maintaining the level of economic growth in 2008. Developing economies are still the main growth drivers of the global control valve market. Emerging economies such as the BRICs (Brazil, Russia, India and China), as well as the Middle East and Eastern Europe, will continue to support the growth of the control valve market.

The global control valve market needs to find demand from the growing global consumption, which depends on a healthy capital investment and credit environment, stable market returns and intensive production demand. Only in this way can control valve suppliers cope with the coming rapid growth of energy demand and global control valve market consumption demand.