The end user demand to reduce operational expenses (OPEX) creates growth opportunities for valves and actuators manufacturers in the aftersales market segment, finds Frost & Sullivan’s Industrial Automation & Process Control team
SAO PAULO, Brazil – April 27, 2017 – The mature Latin American industrial valves and actuators market is experiencing pockets of growth. Growth is driven by high demand for electricity in the power generation industry and investment in the petrochemical industry. However, difficult political and economic conditions in Brazil and Venezuela, which account for 54 percent of demand, severely hinder investment in new valves and actuators.
“Manufacturers offering a strong value proposition with enhanced solutions and robust aftermarket services will have a competitive edge in the long run,” said Frost & Sullivan Measurement & Instrumentation Industry Manager Anand M Gnanamoorthy. “The adoption of technologies / solutions that enable data acquisition for industrial Internet of Things, will prove critical to success in an evolving ecosystem.”
Industrial Valves and Actuators Market, Latin America, Forecast to 2021, a recent analysis from Frost & Sullivan’s Industrial Automation & Process Control Growth Partnership Subscription, finds that in 2016, the total Latin American market for industrial valves and actuators generated revenues of $1,693.2 million. The market is expected to record a compound annual growth rate (CAGR) of 2.1 percent between 2016 and 2021, and generate revenue of $1,876.7 million in 2021.
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Level of industrialization, consumer demand, economic attractiveness, and political structure are key factors driving demand for valves and actuators in the Latin America region. As a result, the countries that account for the highest demand for valves and actuators include Brazil (39.3 percent), Mexico (20.5 percent), Venezuela (13.6 percent), Argentina (12.1 percent), and Colombia (9.3 percent), with other countries such as Peru, Chile, and Central America representing the rest (5.1 percent).
While demand for valves and actuators in Brazil and Venezuela will be lower than previous years, Colombia and Mexico are expected to lead the region’s growth. Further growth opportunities include:
- Replacement parts and aftermarket services are creating opportunities for upgrades and other additional services for valve and actuator manufacturing companies.
- Quarter-turn valves are expected to have the highest demand due to their perceived lower cost, followed by multi-turn valves, the demand for which is growing due to increasing investment in the power generation industry.
- Depreciated currencies against the dollar will further impact the ability to purchase valves and actuators in the short term. As a result, pent-up demand is expected to impact the market in the later years of the forecast period.
- Long-term investment in infrastructure for the energy industry generates strong opportunities.
“Current relationships amongst manufacturers, distributors, and original equipment manufacturers (OEMs) will change as manufacturers begin to offer more integrated solutions and become involved in several OEM and end-user projects,” notes Gnanamoorthy.
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Industrial Valves and Actuators Market, Latin America, Forecast to 2021
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Francesca Valente
Corporate Communications – Latin America
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