KSA Industrial Valves Market Outlook to 2028

KSA Industrial Valves Market Overview

• The KSA Industrial Valves Market was valued at USD 3 billion in 2023. The market is driven by the Kingdom's Vision 2030, which promotes diversification into non-oil sectors, increased investments in infrastructure projects, and expansion in industries like water treatment, chemicals, and petrochemicals. The demand for reliable and high-performance valves is surging, especially in new industrial projects across the country.

• The KSA Industrial Valves Market is characterized by the presence of both global and local players. Prominent companies include Emerson Electric Co., Flowserve Corporation, Saudi Valves Manufacturing (SVM), AVK Saudi Valves Manufacturing, and Cameron (a Schlumberger company). These players dominate the market with a wide range of products tailored to meet the specific needs of various industries, ensuring robust competition and technological advancements in the sector.
• In 2023 Flowserve Corporation acquired Velan Inc. for USD 245 million, enhancing its valves portfolio. This acquisition is expected to strengthen Flowserve's position in the global industrial valves market, including its operations in Saudi Arabia, where demand for advanced valve solutions is increasing.
• In 2023, Jubails dominance due to its attributed to its status as the largest industrial city in the world, housing a vast number of petrochemical plants, refineries, and industrial complexes. The presence of the Jubail Industrial City, which is a major hub for the Kingdoms petrochemical industry, drives the demand for industrial valves. The ongoing expansion of these facilities and the establishment of new projects in Jubail continue to boost the citys leading position in the market.

KSA Industrial Valves Market Segmentation

The KSA Industrial Valves Market is segmented into different factors like by product type, by end user industry and region.

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 the dominant market share due to their wide application across various industries, particularly in the oil and gas sector. Their ability to provide a tight seal and withstand high pressure makes them indispensable in critical applications. The segments dominance is supported by the ongoing expansion of oil and gas extraction and processing facilities across the Kingdom.

By End-User Industry: The market is segmented by end-user industry into oil & gas, water & wastewater, chemical, and power generation. In 2023, the oil & gas segment held the largest market share, driven by the Kingdoms status as a leading oil producer. The segment's dominance is attributed to the significant investments in expanding oil production capacity and upgrading existing refineries. The demand for high-performance valves is critical in ensuring the efficiency and safety of operations in this sector.

By Region: The market is also segmented by region into north, south, east, and west. In 2023, the Eastern region was dominating the market is due to its extensive industrial base, particularly in the oil and gas sector. The regions infrastructure is highly developed, with extensive pipelines and industrial complexes that require constant maintenance and the use of high-performance valves. Additionally, the presence of major industrial players and ongoing investments in expanding these facilities contribute to the region's leading position in the market

KSA Industrial Valves Market Competitive Landscape

KSA Industrial Valves Market Major Players

• Neway Valve Co., Ltd.: Neway Valve has solidified its role as a strategic supplier for TotalEnergies, participating in their 100th Anniversary Supplier Conference on May 21, 2024, in Shanghai. This partnership is indicative of Neway's growing influence in the industrial valve sector, particularly within the oil and gas industry, which is a major market in Saudi Arabia.
• Emerson Electric Co.: In January 2023, Emerson announced plans to break ground for a state-of-the-art manufacturing hub in King Salman Energy Park (SPARK) that will house its entire manufacturing footprint in Saudi Arabia.

KSA Industrial Valves Market Analysis

KSA Industrial Valves Market Growth Drivers

• Investment in Water Desalination Infrastructure: With an investment of SAR 2.54 billion in new water desalination plants and upgrades to existing facilities, including the Rabigh 3 project, KSA is poised to double its desalination capacity by 2025. The need for reliable industrial valves in controlling the flow and pressure of water, especially in corrosive environments, will see substantial growth, driven by the increasing demand for potable water in the Kingdom.
• Development of NEOM and Other Mega Projects: The construction of NEOM, a $500 billion mega-city, is one of the most ambitious projects under Vision 2030. The development of this futuristic city, along with other projects like the Red Sea Project and Qiddiya, is expected to generate substantial demand for industrial valves across various sectors, including energy, water management, and industrial infrastructure. These projects are projected to require millions of units of specialized valves over the next five years.
• Localization of Manufacturing under Vision 2030: The Vision 2030 initiative includes a strong focus on the localization of manufacturing industries, with the goal of reducing reliance on imports and increasing domestic production. By 2024, the Kingdom aims to increase the local production, supported by government incentives, including tax breaks and subsidies for local manufacturers. This will not only boost the domestic market but also create opportunities for export to neighboring GCC countries.

KSA Industrial Valves Market Challenges

• Supply Chain Vulnerabilities: The KSA Industrial Valves Market faces significant supply chain disruptions due to its heavy reliance on imported components and raw materials. This dependency exposes manufacturers to global geopolitical risks, trade restrictions, and fluctuations in raw material prices. For instance, delays in the supply of critical alloys and components can lead to production bottlenecks, increased lead times, and higher costs, challenging the industry's ability to meet growing demand, especially during periods of global instability.
• Complex and Evolving Regulatory Environment: The Kingdom's regulatory framework for industrial equipment, particularly for valves, is becoming increasingly stringent. Compliance with new environmental and safety standards requires manufacturers to invest heavily in upgrading their processes and products. The frequent changes in regulations, along with the lack of standardization across regions, add layers of complexity, increasing operational costs and the risk of non-compliance, which can result in penalties or product recalls.

KSA Industrial Valves Market Government Initiatives

• Localization of Oil & Gas Equipment Manufacturing: In 2023, the Ministry of Energy announced a SAR 300 billion initiative to localize the production of oil and gas equipment, including industrial valves. This initiative is part of the broader Vision 2030 strategy and aims to increase the local content in the oil and gas industry from 30% to 70% by 2028. The government is offering incentives such as low-interest loans and tax exemptions to attract investment in local manufacturing facilities, which is expected to boost the production capacity of industrial valves significantly.
• National Industrial Development and Logistics Program: The 2023 Annual Report of the National Industrial Development and Logistics Program (NIDLP) outlines significant government initiatives aimed at boosting the industrial sector in Saudi Arabia. These initiatives include enhancing local content in manufacturing, particularly in key industries like oil, gas, and petrochemicals, where industrial valves play a critical role. The government is also investing in infrastructure development, technological innovation, and strategic partnerships to accelerate industrial growth and reduce dependency on imports.

KSA Industrial Valves Market Future Outlook

The KSA Industrial Valves Market is expected to grow exponentially by 2028, driven by ongoing industrialization, urbanization, and significant investments in mega-projects like NEOM and the Red Sea Project. The market will see increased adoption of advanced valve technologies, including smart valves with IoT integration, which will be crucial for optimizing industrial processes. The emphasis on local manufacturing will also grow, supported by government initiatives to reduce dependency on imports and promote domestic industries.

Market Trends

• Increased Adoption of Smart Valve Technologies: By 2028, there will be a significant shift towards the adoption of smart valves integrated with IoT and AI technologies in the KSA market. These advanced valves will provide real-time monitoring and predictive maintenance, optimizing operational efficiency and reducing downtime in industries such as oil & gas, petrochemicals, and water treatment. This shift will be driven by the Kingdom's broader push towards digital transformation and Industry 4.0.
• Growth in Water Desalination and Management Sector: The water desalination and management sector in KSA is expected to be a major driver of demand for industrial valves by 2028. With ongoing investments in new desalination plants and upgrades to existing infrastructure, the market will see increased demand for valves that can withstand corrosive environments and ensure efficient water flow management. The focus on sustainable water management will also drive the adoption of environmentally friendly valve solutions.