More Infrastructure in China Cited as Top Natural Gas Trend
Researchers at Technavio have listed the top three emerging trends affecting the global water and gas valves market through 2020 as natural gas infrastructure in China, development of next-generation valves and increased demand for quarter-turn valves.
Technavio defines an emerging trend as a factor with the potential to significantly affect the market and contribute to its growth or decline.
“As a result of the burgeoning population and rapid urbanization, the water and wastewater industry in China and India will witness significant growth during the forecast period, resulting in massive growth opportunities for valve manufacturers,” said Anju Ajaykumar, a lead analyst from Technavio.
The report cites the “flourishing oil and gas industry in China and India” for leading much of the growing demand, saying increased exploration activities and the establishment of new refineries in these regions will benefit valve manufacturers.
Extensive use of coal has resulted in high levels of air pollution in China. To overcome this, the country is reducing its dependence on coal and switching to cleaner alternatives such as natural gas.
China is the reservoir of the world’s largest shale gas reserves with more than 31 Tcm of technically recoverable shale gas resources. The country’s investment in shale oil development during the forecast period is expected to be $160 billion.
Reliance on natural gas will propel investment in gas pipeline construction-related projects. The Chinese energy infrastructure offers lucrative opportunity for both private and foreign investors, with the market earmarking $33 billion for future projects.
As a result of this development in the oil and gas sector, growth in demand for values in the region will lead to further evolution in the regional market, Technavio said. Many industrial valve vendors are developing next-generation valves with additional capabilities to increase their foothold in the competitive market.
These products have threaded bonnets, a floating polytetrafluoroethylene diaphragm, and a zero minimum operating differential design that provides substantial benefits over the conventional valves. The new valves are gaining popularity as they can deliver 60% higher flow rates and longer operational life, and have a wide temperature range and pressure handling ability, the report said.
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