• MARKET REPORT •
How Digital Actuators Lower Cost of Ownership
Digital actuators not only drive higher upfront revenues, but can deliver long-term value through diagnostics, retrofit opportunities, and lifecycle optimization. They are reshaping how both suppliers and end users utilize their performance, maintenance, and profitability.
• By Robert McIlvaine – CEO – McIlvaine Company
Digital and smart actuators are reshaping the valve industry by shifting value from mechanical hardware to digital functionality, which in turn provides a number of advantages for end users and the suppliers.
First, they increase actuator market value. Smart electric units typically cost two to four times more than basic pneumatic actuators since they include onboard electronics, diagnostics, communication protocols, and software. As a result, actuators represent a growing share of total valve package revenue.
Secondly, they expand the replacement and retrofit market. Due to a variety of factors, many facilities are upgrading older pneumatic actuators while keeping existing valve bodies. Benefits include elimination of compressed air infrastructure, lower maintenance, remote configuration, and predictive diagnostics. This strengthens aftermarket revenue and favors actuator specialists.
Many facilities are upgrading older pneumatic actuators while keeping existing valve bodies.
Fourth, lifecycle economics improve. Although capital cost is higher, smart electric actuators reduce operating costs through energy savings, condition-based maintenance, and reduced downtime.
Adoption is strongest in the water, power, and chemical sectors, while oil and gas adoption is growing as failsafe and hazardous-area capabilities improve.
Digital actuators are not only more important as a revenue source, but provide an opportunity to generate repair parts revenue. The valve supplier who has access to the continuing intelligence from the electric digital actuator is in a stronger position to provide repair parts and service.
• They provide access to the critical performance information that will influence repair part purchases.
• They offer ongoing contact and a clear understanding of the customers’ needs.
Ultimately, digital and smart actuators are redefining how value is created and sustained across the valve lifecycle. With many benefits, they allow access to performance data and create new revenue streams through service, diagnostics, and targeted parts replacement. For valve manufacturers, this not only results in using effective and current technology, but it provides opportunities to expand margins, strengthen customer engagement, and most importantly, remain competitive in the flow control industry.
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Third, supplier power shifts toward companies with strong digital platforms. Diagnostics, cybersecurity, and system integration( e. g., Ethernet / IP, Modbus, HART) make actuator intelligence strategically important. Automation-focused firms and specialist actuator OEMs gain influence relative to purely mechanical valve manufacturers.
Valve world revenues per year are in excess of $ 100 billion compared to $ 25 billion for actuators. However, actuator revenues are growing at a faster rate than valve revenues. So, the valve manufacturers should be looking at digital electric actuators with the following potential in mind:
• They can increase initial revenues by up to 20 %.
• ABOUT THE AUTHOR •
Robert McIlvaine is the CEO and founder of The McIlvaine Company, which was established in 1974. He has led the organization to the forefront of knowledge solutions in pollution control, energy, contamination management, and beyond. Robert is a Princeton graduate with over 50 years of consulting experience conducting studies and advising corporations on acquisitions.
10 Valve World Americas | May 2026 | www. valve-world-americas. com