The product finds critical applications in refrigeration and air conditioning systems to modulate the release of refrigerants. This enables efficient control of superheating and better compressor efficiency. It promotes greater compressor safety and longer service life by preventing leakage of refrigerant into the compressor. With the rising adoption of air conditioners due to global warming and rapid urbanization, the market is expected to steadily grow.
The product is in demand across diverse industries such as the cold storage industry, construction, and tourism industries. With improvements in residential and commercial construction standards, electronic expansion valves are being preferred over thermal expansion valves.
Expanding the residential sector is a key growth factor for the demand growth of expansion valves, increasing per capita income has resulted in increasing per capita expenditure for a luxurious lifestyle, which has enhanced the demand for refrigeration & air conditioning products for the residential sector.
Furthermore, rising automotive production & increasing automotive production & increasing penetration of electric vehicles have created high growth opportunities for the expansion valves market, with increasing research & development activities from the manufacturers the market is expected to experience incremental growth opportunities.
Automotive Industry Continues to be a Major Consumer
The automotive industry has proven to be a lucrative market for expansion valves. Further, a rise in the electric vehicles segment is expected to drive demand for sophisticated expansion valves.According to FMI, demand in the residential sector is expected to account for maximum sales of expansion valves. Besides this, the automotive industry is expected to emerge as a chief end user. The demand from various industries has positioned the expansion valves market to surpass US$ 11 Bn by 2033.
2017-2022 Expansion Valves Market Outlook Compared to 2022-2033 Forecast
Driven by increasing focus on research and development and rising spending on the installation of (heating, ventilation, and air conditioning) HVAC systems, the expansion valves market will rise at 4.2% CAGR between 2023 and 2033 in the comparison above 3.5% CAGR registered during 2017-2022.The automotive industry is exhibiting high demand for electronic expansion valves as the demand from customers for advanced air conditioning systems increases. Besides this, due to increasing fuel prices and various ongoing initiatives by local governments for the development of electric vehicles, prospects for sales of expansion valves have greatly improved.
Innovations Expected to Improve Market Prospects During Forecast Period
Some of the leading expansion valve manufacturers are looking to provide innovative products in the market. This has resulted in the launch of an automatic expansion valve for installation in the residential sector.Automatic expansion valves are widely used in chillers, water coolers, refrigerants, and other applications.
The growth of the market is also directly connected with the scope for application in the construction sector since the installation of HVAC systems is a basic need for the construction of any new building whether it is for residential or commercial use.
Short Term (2023 to 2026): During the present initial phase of the forecast period, expansion of cold chain infrastructure is expected to bolster the market. With the rise in population, developing nations are collectively trying to reduce food wastage and meet the demand of underserved communities.
Many countries across the globe, especially China and India, are strengthening their cold chain infrastructure intending to reduce food wastage and meet the growing demand. This has resulted in high demand for refrigeration requirements, thus increasing the demand for expansion valves.
On the other hand, the rise in per capita disposable income is increasing cold storage applications across retail facilities. This is vital to serving the expanding consumer base.
Medium Term (2026-2029): Key innovations, research, and development activities could bear fruit during this period. Thus leading to highly efficient products, to be used in the new-age sophisticated air conditioning and cooling systems. This could include complete automation of air conditioning systems in the near future. Features such as voice control and smart sensing technology are already gaining wide acceptance.
Long Term (2029-2033): Factors such as global warming, urbanization, and industrialization are expected to have a long-term impact on the market. With rising, temperatures manufacturers could easily break into earlier untapped markets. Despite, the lower GDP of underdeveloped regions, air conditioning systems are expected to emerge as a dire necessity. By the end of the forecast period, most nations in the tropical regions are expected to emerge as lucrative markets.
How will the Growing HVAC Sector Aid Expansion Valves Market?
The ongoing growth in the HVAC sector has positively affected the expansion valves market. Growth in the HVAC sector has directly fuelled the demand for expansion valves. Expenditures on HVAC systems have increased in past few years due to advancements in technologies and increasing per capita spending. Both commercial and residential buildings have fuelled the demand for HVAC systems, which has led to high sales of expansion valves.During the forecast period, the segment is expected to grow at a CAGR of 4.5%. The segment is primarily driven by demand from the construction industry. With rising sustainability concerns, energy-efficient HVAC systems are highly favored by consumers. This is promoting its application in large commercial structures and multi-family residential apartments.
US$ 11.5 Bn in 2023. Increasing demand for advanced air conditioning systems for installation in diverse sectors will drive growth in the market by 4.2% CAGR between 2023 and 2033.
Expansion Valves Market Country-wise Insights
How big is the U.S. Expansion Valves Market?
The demand for expansion valves is expected to remain high within the U.S., thanks to h the ongoing development of the commercial & residential sectors. According to the study, the U.S. is expected to account for the maximum sales of expansion valves within North America. It is expected to register growth at 3.5% CAGR during 2023-2033.
Surging installation of HVAC systems in tandem with the expansion of operations within the construction sector will present a conducive environment for the expansion valve market growth in the U.S. Also rising per capita spending for air conditioning systems will continue driving growth.
The U S market is expected to reach a valuation of US$ 2.7 Bn by 2033.
Why is the Demand for Expansion Valves Increasing in China?
Sales of expansion valves in the China market are expected to surpass 100 Mn Units over the forecast period. China’s Industrial sector is backed by a well-developed & highly advanced infrastructure and it is largely supported by government initiatives. It is not surprising that China has the most elevated level of expenditure across the globe.
According to the study, China is perceived as a critical market and the demand for expansion valves is likely to remain strong throughout the projection period. Furthermore, the ongoing growth in the demand for air conditioning systems for residential and commercial applications is boosting the sales of expansion valves.
During the forecast period, the Chinese market is expected to grow at a CAGR of 5.6% to reach a market value of US$ 4.5 Bn by 2033.
What is driving the Germany Expansion Valves Market?
Germany is one of the world’s leading manufacturers of automotive vehicles. By 2033, it is expected to account for over 1/5th of expansion valve sales within Europe.
The ongoing growth in the various end-use sectors in Germany is expected to drive the market. The country has a highly developing industrial sector. Along with that, it exhibits high growth in the automotive sector, which makes the Germany largest market within Europe.
How are Government Initiatives Boosting India’s Expansion Valves Market?
In 2023, India will account for over 40% of sales in South Asia & Pacific. Government initiatives undertaken to encourage growth in the industrial and automotive sectors are anticipated to supplement the expansion of the India expansion valves market.
Rising demand from the automotive sector because the Government of India is supporting electric vehicle sales. Expansion valves are among the components integrated into electric vehicles. Besides this, the scope for application in commercial and residential buildings across India is growing, leading to high demand for expansion valves.
Key Regional Insights During the Forecast Period
- The Chinese market is expected to register the highest CAGR of 5.6%, expanding by a phenomenal US$ 1.9 Bn during the forecast period.
- Japan’s market has grown from a CAGR of 2.8% between 2017-2022 to 4.0% during the forecast period.
- China is expected to hold the largest market share of US$ 4.5 Bn by 2033, surpassing United States’ projected US$ 2.7 Bn by 2033.
Expansion Valves Market Category-wise Insights
Why is the Demand for Thermal Expansion Valve Rising?
Based on product type, thermal expansion valve which is also known as thermostatic expansion valve has emerged as the leading category, accounting for nearly 3/4th of the value share of the market in 2022.
The reason behind the rise in demand is the awareness regarding the advantages associated with thermal expansion valves. These kinds of valves provide higher power efficiency, and better temperature control and are cost-effective which makes them highly popular amongst end users.
Who is the Leading End User in the Expansion Valves Market?
The residential sector is expected to hold the highest share in the expansion valves market and sales in this segment are expected to surpass US$ 6.0 Bn by 2033.
The primary reason behind the robust demand from the residential sector is the increased spending on refrigeration and air conditioning. The expenditure for air conditioning has increased in the past few years, which has resulted in high demand for expansion valves.
Which Application Utilizes Maximum Expansion Valves?
Application of expansion valves in air conditioning is estimated to account for more than 60% of sales in the market in 2023 owing to the robust demand for air conditioning from the automotive and commercial sectors. Nowadays almost every passenger vehicle is equipped with an air conditioning system. Considering this, surging passenger vehicle production is expected to steer sales of expansion valves in the coming years.
Why is Stainless Steel More Preferred for Expansion Valves Production?
The stainless steel segment is expected to account for the maximum demand in the global expansion valves market in the forecast year. Overall sales in the segment are expected to reach US$ 5.7 Bn owing to technical & mechanical advantages associated with the use of stainless steel as a material for expansion valves.
During the forecast period, the stainless steel segment is expected to grow at a CAGR of 5.0%.
Expansion Valves Market Competitive Landscape: Key Players Target Lucrative Markets
Companies operating in the expansion valve market are aiming to enhance their supply channel in the Asia market since it is the highest-grossing regional pocket. Besides this, key manufacturers are aiming to enhance their portfolio to gain more sales.
Key Players and Recent Market Development
Some of the leading players in this industry include but are not limited to Emerson electric co, SANHUA, fujikoki corporation, otto Egelhoff gmbh & co. Kg, Castel s.r.l., the co., ltd., Keihin, carel industries s.p.a., Danfoss group, Parker-Hannifin Corporation, Denso, Hanon systems.
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