While there continues to be vast opportunities in the fuel delivery system market, the number of players staking a claim in the global shares will continue to increase too, and hence, the competitive landscape will remain fragmented, according to a recent business and commerce study by Transparency Market Research (TMR). The prosperity of the global fuel delivery system market is a reflection of the extended demand coming from its various end use industries including oil and gas and mining.
The analysts of the TMR report have projected the demand in the global fuel delivery system market will increment at a CAGR of 3.4% during the forecast period of 2016 to 2024. As for the stockholders connected to the value chain of fuel delivery system market, there was an opportunity worth US$4,330.7 mn in 2015, and the analysts have estimated it to swell up to US$5,969.1 mn by 2024.
Going forward, some of the prominent players such as Cascho Inc., Waltow Electric Manufacturing Company, Cameron (Schlumberger) Ltd., and Honeywell International Inc. are expected to invest generously into mergers and acquisition activities in order to expand their geographical presence, strengthen their supply network, and add to their consumer base. One of such instance of aggressive acquisitions can be the dissolving of Delta Industrial Valves Inc. into The Weir Group PLC back in July 2015.
Based on component, the report segments the fuel delivery system market into stop valves, gas regulator, flow and pressure safety switches, and others, with the stop valves providing for more than half, 54%, of the total demand. Over the course of the forecast period, this segment is expected lose its dominance and yet remain the most profitable one. On the other hand, flow and pressure control systems segment is expected to extend the demand at a notable growth rate.
Application-wise, the report classifies the market for fuel delivery system into furnaces, boilers, and kilns and overs, whereas on the basis of fuel type, the market has been bifurcated into oil, gas, and electricity. End use industries studied under this report for their potential are power, oil and gas, chemicals, mining, mineral and metal, refining, water, printing and publishing, pharmaceuticals, specialty engineering chemicals, ceramic, glass, food and beverages, alternate fuel, building, automotive, and others.
Geographically, analysts have highlighted Asia Pacific as most lucrative region, gaining strong traction from vastly populated emerging economies of India and China. The region accounted for 25% of the total demand for fuel delivery system across the world and a number of vendors are making a foray into this region to keep it prospering throughout the forecast period.
Prosperity of End-use Industries Driving Demand
The prosperity of each of the aforementioned end-use industry is reflecting positively on the global fuel delivery systems market, particularly automotive, food and beverages, and chemicals. There is a constant need to monitor the process with efficient systems as safety and security is paramount when dealing with this inflammable product. The components of fuel delivery system can efficiently manage equipment such as industrial ovens, furnaces, and boilers and are expected to keep the market in good stead in the near future.
On the other hand, the sluggish growth rate with which the demand has been projected to expand is a reflection of restraints such as slow growth of some of the end use industries such as mining and impending economic rise of a number of underdeveloped countries. That being said, the vendors of this market stand to gain from increasing application of simulation software that strongly helps in maintaining the standards desired.