Vietnam Industrial Valves Market Outlook to 2028

Vietnam Industrial Valves Market Overview

The Vietnam Industrial Valves Market was valued at USD 760 million in 2023. This growth is primarily driven by the rapid industrialization and urbanization in the country, leading to increased demand in sectors such as oil and gas, water and wastewater treatment, and power generation. The government's focus on infrastructure development and foreign investments has also played a crucial role in expanding the market.

The key players dominating the market include Emerson Electric Co., Siemens AG, Flowserve Corporation, IMI Plc, and KSB Group. These companies have established strong footholds in the market through their extensive product portfolios, strategic acquisitions, and partnerships.

In 2023, Emerson Electric Co. announced the establishment of a new innovation and manufacturing hub at King Salman Energy Park in Saudi Arabia. This facility aims to bolster localization of manufacturing and services, focusing on key sectors such as oil and gas, petrochemicals, water and support its sustainability goals, aligning with environmental standards.

In 2023, the Ho Chi Minh City, dominates the market due to industrial valves market due to its significant industrial base and strategic location. The presence of major industrial zones and the development of new projects in this area continue to drive the demand for industrial valves.

Vietnam Industrial Valves Market Segmentation

The Vietnam Industrial Valves Market can be segmented into three major segmentations which are as follows:

By Product Type: The market is segmented by product type into ball valves, gate valves, globe valves, and butterfly valves. In 2023, ball valves held a dominant market share due to their widespread application in the oil and gas industry for controlling the flow of liquids and gases. The robust construction and efficient sealing capabilities of ball valves make them ideal for high-pressure applications, contributing to their dominance.

By End-Use Industry: The market is segmented by end-use industry into oil and gas, water and wastewater treatment, power generation, and chemicals. In 2023, the oil and gas industry was the leading segment. This is driven by substantial investments in oil exploration and production activities, particularly in emerging markets. Vietnam, for instance, has expanded its refining capacities, supporting this growth. This trend is further propelled by energy demand and regional industrial development, positioning the oil and gas sector as a key contributor to the markets growth.

By Region: The market is segmented by region into north, south, east, and west. In 2023, the southern region, held a dominant market share due to its It hosts numerous industrial zones, including the Saigon Hi-Tech Park and various export processing zones, which are home to many manufacturing and processing industries. The presence of these industrial zones creates a significant demand for industrial valves for various applications, from manufacturing to water treatment.

Vietnam Industrial Valves Market Competitive Landscape

Company

Establishment Year

Headquarters

Emerson Electric Co.

1890

Missouri, USA

Siemens AG

1847

Munich, Germany

Flowserve Corporation

1997

Texas, USA

IMI Plc

1862

Birmingham, UK

KSB Group

1871

Frankenthal, Germany

Emerson Electric Co.: In December 2022, Emerson introduced the Crosby J-Series pressure relief valves, which are designed to enhance performance and operational efficiency while reducing costs. This innovation reflects Emerson's commitment to technological advancement in response to evolving market needs, particularly in the oil and gas sectors that are crucial for Vietnam's industrial landscape.

Siemens AG: In fiscal 2023, Siemens AG achieved a revenue of$83.25 billion, marking an11% increasefrom the previous year, alongside a net income of$9.1 billion, nearly doubling from$4.71 billionin fiscal 2022, driven by strong performance in its industrial segment, including valves.

Vietnam Industrial Valves Market Analysis

Vietnam Industrial Valves Market Growth Drivers

Expansion of Oil and Gas Sector: The growth of the oil and gas sector in Vietnam is a significant driver for the industrial valves market. In 2023, oil production in Vietnam amounted to approximately 188 thousand barrels a day. This surge in production necessitates a higher demand for industrial valves to manage the flow and pressure within oil rigs and refineries.

Increase in FDI Flow: Vietnams Foreign Direct Investment (FDI) continues to grow, with $16.2 billion recorded by mid-2023. Major investments are coming from key countries like South Korea, Singapore, and China, targeting sectors such as manufacturing, energy, and infrastructure. This inflow of FDI is driving the need for advanced industrial equipment, including industrial valves, to support the expansion of production facilities and infrastructure projects.

Power Generation Projects: The expansion of power generation capacity, including new thermal and hydroelectric power plants, contributes to market growth. Industrial valves are essential for controlling the flow of steam, gas, and water in power generation processes, driving demand in this sector.

Vietnam Industrial Valves Market Challenges

Regulatory Compliance: The stringent regulations governing industrial valve standards and certifications present a challenge for manufacturers. Compliance with international standards requires significant investment in quality control and testing. In 2024, the Vietnamese government introduced new regulatory requirements to ensure product safety and reliability, increasing the burden on manufacturers to meet these standards.

Lack Technological Expertise: The industrial valves market in Vietnam faces challenges related to the need for skilled labor and technological expertise. Many local manufacturers struggle to keep up with the advanced technologies required for producing high-precision valves. This skills gap can hinder the market's growth potential, especially as demand for more sophisticated valve solutions rises.

Vietnam Industrial Valves Market Government Initiatives

Environmental Protection Plans: In July, 2024, Vietnam approved the National Environmental Protection Plan for the period of 2021-2030, with a vision towards 2050. This comprehensive plan aims to strengthen environmental protection efforts and ensure sustainable development across the country, advancing towards the goal of net zero emissions by 2050.

Refinery Expansion and Fuel Self-Sufficiency: In a bid to enhance industrial capabilities, Vietnams government, supported by a USD 1.5 billion Australian fund, is expanding its Dung Quat refinery to achieve fuel self-sufficiency. This initiative is expected to boost the demand for industrial valves used in refining processes.

Vietnam Industrial Valves Market Future Outlook

The Vietnam Industrial Valves Market is expected to grow exponentially by 2028. The market's future growth will be fueled by advancements in automation and smart valve technologies, increased investments in infrastructure projects, and the continuous expansion of end-use industries.

Market Trends

Adoption of Smart Valve Technologies: Over the next five years, the adoption of smart valve technologies is expected to increase significantly in Vietnam. These valves, equipped with Io T capabilities, will offer real-time monitoring and predictive maintenance features, reducing operational downtime and enhancing efficiency. By 2028, it is estimated that smart valves will account for a substantial portion of the market, driven by the need for automation and advanced control systems.

Sustainability and Green Solutions: The demand for eco-friendly industrial valves will rise as industries increasingly focus on sustainability and reducing environmental impact. Companies are expected to invest in the development of valves that minimize emissions and improve energy efficiency. By 2028, the market will see a significant shift towards green solutions, driven by regulatory requirements and customer preferences for sustainable products.
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