Mcilvaine Insights


No. 181   November 17, 2021


        $100 Billion Annual Market for Pumps, Valves, and Other Air, Water, and Combustion Products in Energy Applications



LNG needed for economic and political reasons. How quickly can the U.S. supply LNG to Europe.? There is growing realization that  Russia is not dependable source of supply due to their increased confrontational manner in Europe.

Liquefaction plants cost as much as $5 billion and take years to build.  At least some are about to start operations. Venture Global is installing 18 modular liquefaction trains configured in nine blocks at Calcasieu LA to produce about 10 million tons per annum of LNG, equivalent to about 1.5 billion cubic feet per day of natural gas.

In addition to Calcasieu, Venture Global has about 60 MTPA of LNG export capacity under development in Louisiana, including the 20-MTPA Plaquemines, which could start construction later this year, the 20-MTPA Delta and the 20-MTPA CP2.

$60 billion AWE Market in Food. There is a big market for valves, pumps, filters and other AWE products in food.

There are 1000s of individual niches which need to be analysed. The following video summaries examine many of these markets.

Food and Beverage Markets  Video Summary 

Alcoholic Beverage Analysis Video Summary

Dairy Analysis Video Summary

Meat and Poultry Analysis Video Summary

Sugar Analysis Video Summary


$100 Billion Annual Market for Pumps, Valves, and Other Air, Water, and Combustion Products in Energy Applications

There is a $100 billion annual market for air, water, and combustion products in energy applications over the next 20 years regardless of climate change policies.

Solar and wind require little  investment in air, water, and combustion products. Their percentage of total energy production will grow rapidly. Nevertheless these two sources will not eliminate the need for other technologies over the next 20 years.

Some CO2 neutral or negative technologies such as BECCS and nuclear require more investment in air, water, and combustion products than do conventional coal fired plants.

The mix of utility power generation sources as forecasted by IEA and separately by McIlvaine show reliance on a number of fuel sources.




In addition there will be large purchases by industrial and commercial sources. These include

        Off road engines

        Stationary Engines



        Industrial Power and CHP

        Waste to Energy


There is a new business strategy to pursue these markets: The Most Profitable Market  Program

The unique deliverable is the forecast of potential EBITA for each major prospect.

The segmentation of forecasts should include the following criteria

        Market potential by application

        Correlation to specific prospects

        Cost of ownership factors

        Geographical aspects


Market potential in each application:  Selective Catalytic Reduction (SCR) can be used as an example. The supplier of catalysts, valves, or pumps wants to know how big the SCR market is in coal, gas turbines, marine, stationary engines etc.

Market potential by process:  SCR is an application which requires unique types of catalyst, pumps, and valves. So determining the process potential is important. There are variations such as when hydrogen is used as a fuel source.

Correlation to specific prospects: Each of these fuel sources will have unique purchasers but there is overlap.  A utility such as NTPC in India is involved in all the  utility fuel sources. Maersk is buying catalyst for marine applications. There are more 90,000 ships of which 10% already have SCR systems. They represent a market for replacement catalyst as well as repair parts for pumps and valves.

Cost of ownership factors:  Each fuel source has unique cost of ownership factors. Many sources require SCR. In the case of coal fired boilers the particulate contamination of catalyst requires special designs. Marine SCR systems have space constraints.

Geographical aspects:  Regulations are not uniform across the world. There has been no requirement for SCR on gas turbines in many countries. The coal fired capacity is shrinking in some countries and expanding in others

Market forecasts detailed enough to provide segmentation based on all five of the important criteria provide the foundation of a business strategy. The supplier can then determine where they can offer products with the lowest cost of ownership and maximize EBITA and revenues.

McIlvaine  provides reports on  products such as valves, pumps, filters etc. on all applications as well as well as process oriented reports such as NOx control or cleanrooms. Descriptions for each are found at

Custom consulting is also available. Bob McIlvaine can answer your questions at 847 226 2391 or email him at