According to a study by ARC Advisory Group, the worldwide control valve market experienced double-digit growth in 2006 and is expected to continue to grow at a compounded annual growth rate exceeding 5% over the next five years, The market, which approached USD 4 billion in 2006, is forecasted to exceed USD 5 billion in 2011. ARC’s study, titled Control Valve Worldwide Outlook, says the global control valve market is in the midst of a phase of unprecedented growth due to booming greenfield plants in developing countries and exploding investment in oil & gas exploration and production. Though China still represents significant growth opportunities, the Middle East has quickly become the regional market offering control valve suppliers the greatest growth potential, says ARC. There are signs that China is slowing construction of new manufacturing plants to keep its economy from over-heating. Foreign investment in China is also tapering off, as cheap labor, arguably one of China’s most attractive attributes, and land have become more expensive due to the country’s booming economy. On the other side, suppliers can expect increasing growth opportunities in the Middle East due to its high concentration of oil & gas activities, notes ARC.
