Global Cryogenic Valves Market to Surpass US$ 2,879.4 Million by 2030
Cryogenic valves, as the name indicates, are valves that are used in extremely cold applications. They are thus most commonly used by companies that work with liquefied natural gas (LNG) or compressed natural gas (CNG). These valves operate at temperatures below -40°C and are mainly used for gas liquefaction. They are commonly found in the oil and gas industries, which usually deal with cryogenic temperatures. In the oil and gas industry, cryogenic valves serve to control liquefied gases such as liquid nitrogen, methane, and helium. Cryogenic valves are also used to produce gases such as nitrogen and oxygen. They are kept in the natural closed position to keep cryogenic gases or other mediums secure and safely contained.
The global cryogenic valves market is estimated to account for US$ 1971.3 Mn in terms of value by the end of 2023
Global Cryogenic Valves Market: Drivers
Increasing demand for industrial gases and an increase in consumption of oil and gas are expected to augment growth of the global cryogenic valves market over the forecast period. For instance, India retained its spot as the third-largest consumer of oil in the world as of 2021. According to the India Brand Equity Foundation (IBEF), consumption of natural gas in India is expected to grow by 25 billion cubic meters (bcm), registering an average annual growth of 9% until 2024. Moreover, oil demand in India is projected to register a 2x growth rate to reach 11 million barrels per day by 2045.
Global Cryogenic Valves Market: Opportunities
Growing oil and gas exploration in major developing countries is expected to offer significant growth opportunities for players in the global cryogenic valves market. In June 2019, Oil and Natural Gas Corp. (ONGC), India's state-owned hydrocarbon explorer, announced its plan to drill 100 wells in 21 onshore Petroleum Mining Lease (PML) blocks in Sivasagar district at a cost of INR 3,500 crore. The company to carry out drilling in 100 locations to evaluate the hydrocarbon potential of 21 different PML blocks in a non-forested area covering 944.39 km in Sivasagar district (Assam, India).
Global Cryogenic Valves Market: Restraints
Safety concerns regarding the operation of liquefied gases are expected to hamper the growth of the global cryogenic valves market over the forecast period. For instance, the extreme cold of cryogenic liquids requires special care in their use. Liquefied gases are highly cryogenic in nature and need to be handled with the utmost care as it may lead to the failure of the valve and leakage of liquefied gas.
Counter Balance: The global cryogenic valve market is projected to grow from $3.88 billion in 2022 to $7.15 billion by 2029, at a CAGR of 9.1% in forecast period, 2022-2029
Global Cryogenic Valves Market- Impact of Coronavirus (Covid-19) Pandemic:
The outbreak of COVID-19 has had many short-and -long term consequences in various industries, such as chemicals, oil and gas, energy and power, food and beverages, medical, and other end-user industries, which in turn has had a severe impact on the cryogenic valves market. For instance, the pandemic has had a severe impact on the oil and gas industry, as the demand for oil has decreased significantly due to the nationwide lockdown and travel restrictions. In the U.S, the crude oil production declined from 12.2 million barrels per day in 2019 to 11.4 million barrels per day in 2020. Furthermore, many production facilities in several end-user industries have been halted due to the pandemic.
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Among product type, ball valve segment held a dominant position in the global cryogenic valves market in 2021, accounting for 35.9% share in terms of value. Increasing approval and the launch of new products are expected to propel growth of the segment during the forecast period.
Increasing demand from the chemical industry is expected to propel the growth of the global cryogenic valves market. For instance, in 2018, Formosa Petrochemical Corp a Taiwanese energy company engaged in refining of crude oil announced its plan to construct a US$ 9.4 billion chemical manufacturing complex in St. James Parish, Louisiana (United States). The complex is planned to be built in two phases and will produce ethylene, ethylene glycol, propylene, and associated polymers.
Growing applications in the pharmaceutical industry are expected to propel the growth of the global cryogenic valves market. For instance, drugs and vaccines are manufactured and stored at very low temperatures, and thus, the pharmaceutical industry also utilizes cryogenic technology. In 2019, the FDA’s Center for Biologic Evaluation and Research (CBER) approved 22 licenses for new biologic products, 21 of which require cold-chain handling.
Major players operating in the global cryogenic valves market include Velan Inc., Samson AG, Parker Hannifin Corp., Meca-Inox, L&T Valves Limited, Herose GmbH, Flowserve Corporation, Emerson Electric Co., ECI LLC, Cryofab, Bray International, Baker Hughes (General Electric), Bac Valves, Powell Valves, and Habonim Industrial Valves & Actuators Ltd., among others.
In January 2020, GAIL Limited a central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India planned to invest more than INR 45,000 crore over the next five years for the expansion of the National Gas Pipeline Grid and city gas distribution networks. The company operates a 12,160 kilometer pipeline network, through which it accounts for about two-thirds of the total natural gas sold in the country.