The Indian industrial valves and actuators market is experiencing rapid growth due to the development of chemicals and petrochemicals industries. Power generation plants are to be restructured to increase efficiency in energy saving and environmental protection. Future investments in nuclear power generation are likely to generate substantial revenues for the total industrial valves and actuators market, creating numerous growth opportunities for market participants.

Several major national projects are being launched providing many avenues for industry participants to increase market share. Oil and gas pipeline-related projects create vast demands for valves and actuators. Reinforcing sewage treatment is conducive to revenue growth. Transfer of foreign valves technology and the application of other relative technologies are likely to boost demand for this product in the market.

With over 3000 participants, the industrial valves and actuators market is a highly competitive one. The low-end market is flooded with small domestic companies serving niche segments by producing labor-intensive valves with low technical content. These participants usually gain competitive advantage by lowering prices. On the other hand, multinational companies providing specialty valves and sophisticated actuators compete in the high-end market generating the majority of market revenues. To sustain or increase their market position, industry participants, especially multinationals, are likely to carry out acquisitions and mergers, notes the analyst of this research service. Market participants can also garner larger revenues by periodically upgrading their products.

There is a growing need for robust valves offering stable performance and higher degree of automation to cope with the increasing automation of industries. This is increasing investment in the research and development of valves. One of the major advances has been the application on of intelligent valves integrated with embedded system, fieldbus, and computer-based controls. Intelligent valves that are capable of self-diagnosis, data processing, and networking with computer-based control systems can optimize valve system management, observes the analyst. Further technical improvements toward more reliability and extending functionalities are likely to occur as technical valves gain wider acceptance.

However in the near term more buyers may opt to purchase the less expensive standard valves as nonresidential fixed investment slows, possibly upgrading them with separately sold actuators at a later date. Steel and steel alloys are expected to remain the most commonly utilized valve construction materials due to their durability and strong performance in high temperature, high stress applications. Although valve performance will continue to be improved by advances in nontraditional materials (e.g., plastics, titanium and other metal alloys), steel and steel alloys will still make up nearly one-half of valve demand by 2013.