Global Pressure Relief Valve Market to Exceed $4 Billion by 2020
The global pressure relief valve market continues to grow, and there are no signs of it slowing down in the near future. Research analysts at Technavio stated in a recent report that they expect the market to grow at a compound annual gross rate (CAGR) of about 1.7% and reach values exceeding $4 billion by the end of 2020. They reported that an increased demand for pressure relief valves will stem from the power generation, chemical, and oil and gas industries over the next four years.
Increasing Nuclear Power Generation
Technavio’s market research report states that the nuclear power industry in China is one of the most prominent driving forces behind the market’s growth. Pressure relief valves play a vital role in nuclear power plants. They protect super heaters, turbines, and boilers to help the stations run at the optimal high temperatures and pressure.
In the coming years, the country is expected to expand its nuclear power industry, thus creating a higher demand for pressure relief valves. As of now, the country has 30 operating nuclear reactors, 24 under construction, and 30 being planned. By the end of 2020, the country’s nuclear power industry is predicted to reach at least 58 GWe of nuclear capacity.
Plus, with more countries expanding their power generation sectors and creating more nuclear plants, the global pressure relief valve market in this industry will be valued at $978 million and grow at a CAGR of 1.6%, according to Business Wire.
Rising Petrochemical and Chemical Sectors
Business Wire also mentioned that the global pressure relief market in the petrochemical and chemical sectors is predicted to grow at a CAGR of 2% and exceed $1 billion in value. One reason for this is that more developing countries are increasing their own chemical production and relying less on European imports. In fact, by the end of this year, India will become an exporter of polyethylene.
In addition, economic improvements in North America and APAC as well as growing top-end users of chemical products are creating more demand for chemicals and more opportunities for pressure relief valves to be used in these sectors.
In these plants, pressure relief valves are used for high pressure and back pressure, thermal expansion protection, and more.
Upwards Trend in Oil and Gas Industries
With low oil prices, the oil and gas industry has faced a number of setbacks. The New York Times reports that with prices declining throughout recent years, earnings have dropped for many global companies that were once making record profits. As a result, over two-thirds of their rigs were decommissioned.
But regardless, Business Wire reports that the constant demand of oil in global markets will cause the pressure relief valve market value to exceed 1.6 billion by 2020, growing at a 1.5% CAGR over the next four years.
However, while market values are predicted to rise in this industry, the increasing trend of using alternative energy sources could result in a slower growth pattern compared to other sectors.