International. According to a market study by Future Market Insights (FMI), the expansion valve market will report a CAGR (Compound Annual Growth Rate) of 4.0% from 2021 to 2031, owing to demand in the residential, automotive, and commercial sectors, among others.
Taking into account that global sales of growth valves will be valued at more than 10.7 billion USD in 2021 and added to the forecast of a stable long-term market, IMF data suggest that this will exceed US $ 15.9 billion by the end of 2031.
Moreover, FMI said that "the increasing use of air conditioning in the automotive sector is a prerequisite factor driving demand for expansion valves." And he highlighted as a proof that, today all vehicles, especially passenger vehicles, are equipped with air conditioning systems. Concluding this technological feature "is the main driver of the expansion valve market".
Valve Market Context
The expansion valve market, according to an IMF statement, "observed a moderate decline in its sales volume in fiscal 2020 due to the COVID-19 pandemic." This is as a consequence of the fact that the distribution routes between manufacturers and consumers were negatively seen. However, in the last quarter of 2020, thanks to the economic reactivation, this sector recovered from the impact of the pandemic.
"In the coming years, the demand for electronic expansion valves is expected to grow considerably. Electronic expansion valves are more comfortable to use and consume less power, making them more popular with end users."
Finally, the research firm delivered the following key findings: expansion valve application for air conditioning is projected to have more than 60% volume share of the global market by 2021; In terms of product type, the Thermal Expansion Valves segment will hold more than 69.1% of the market share by the end of the forecast period; East Asia will remain a major market; demand for expansion valve segments up to 30 bar will increase at a CAGR of approximately 4.1% over the next decade; and, by installation, sales of this product are expected to reach US$14.1 billion in 2031.