Cryogenic valves, as the name indicates, are valves that are used in extremely cold applications. They are thus most popularly 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 deals with cryogenic temperature. In the oil and gas industry, cryogenic valves serve in the control of liquefied gasses such as liquid nitrogen, methane, and helium. Cryogenic valves are also used to produce gases such as nitrogen, oxygen. They are kept in the natural closed position to keep cryogenic gasses or other medium secure and safely contained.
The Global Cryogenic Valves Market is estimated to account for US$ 1,967.9 Mn in terms of value by the end of 2022.
Increasing demand for industrial gasess and increase in consumption of oil and gas is 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 to reach 11 million barrels per day by 2045.
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-forest area covering 944.39 km in Sivasagar district (Assam, India).
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.
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Global Cryogenic Valves Market - Impact of Coronavirus (Covid-19) Pandemic:
The outbreak COVID-19 has brought many short term 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 United States, 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 of several end-user industries have been halted due to the pandemic.
The global cryogenic valves market was valued at US$ 1,883.5 Mn in 2021 and is forecast to reach a value of US$ 2,570.1 Mn by 2028 at a CAGR of 4.5% between 2022 and 2028.
Among product type ball valve segment held dominant position in the global cryogenic valves market in 2021, accounting for 35.9% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
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 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 network. The company operates about 12,160 km pipeline network, through which it accounts for about two-thirds of the total natural gas sold in the country.