Impact of Covid-19 Outbreak on Global Solenoid Valves Market
A solenoid valve is an electrically controlled valve that is designed to withstand corrosive and humid environments. It is specifically designed to control the flow of gases or liquids and is electrically controlled by a coil. These valves are widely used in the food processing industry in two different variants, namely utility service valves and direct contact valves. Due to the COVID-19 pandemic, the governments have imposed lockdowns and have shut down all businesses except for essential goods/services. The demand for processed food during the lockdown is impacting the growth of the market. Additional precautionary measures have been taken, which include maintaining social distancing, hand sanitizing as well as using gloves for food safety during the pandemic. Moreover, solenoid valves are widely adopted in the oil & gas industry. The outbreak of the COVID-19 virus in China and its gradual spread in other countries across the world has lowered the demand and prices of crude oil.
FIGURE: SOLAR POWER NET GENERATION IN THE U.S. FROM 2015 TO 2019 (IN MILLION KILOWATT HOURS)
On the flip side, the shift towards hydrogen energy, solar thermal power plants, and geothermal energy processes is driving the demand for the solenoid valves. The COVID-19 pandemic has significantly impacted the implementation of solar projects as the solar cells and modules are mainly imported from China. The outbreak of COVID-19 has also delayed the execution of solar power projects, which has also caused a decline in the growth of the solenoid valve market. Post lockdown, the prices of solar modules are also expected to rise due to the depreciation in currencies. The COVID-19 pandemic has severely affected the global economy. It has been estimated that companies may face financial problems in the post-lockdown period.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: Secondary Sources