MARKET REPORT
Following an economic dip in the first half of
2026, the industrial valve industry is once again looking ahead with greater optimism. Rising order intake and improved economic outlooks are fuelling hopes for a business rebound in the second half of the year.
Text and images by VDMA
Industrial valves sector poised for recovery
Following a prolonged period of growth, the industrial valve industry experienced an economic dip in the first half of 2026, as expected. Revenue was 4 percent below the previous year’ s level( a 5 percent decline after adjusting for price changes). While domestic business fell by 4 percent, revenue from overseas markets declined by 5 percent.
Investment caution marks the start of the year
“ The enormous uncertainty in global markets, and in particular the conflicts in the Middle East, significantly weighed on our business at the start of the year,” explains Axel Weidner, Chairman of the VDMA Valves Association and partner at Mankenberg GmbH.“ Normally, our industry benefits from its broad presence across various sales markets. In the first months of the year, however, a noticeable reluctance to invest was observed in nearly all major end-user industries. This has slowed down even our otherwise very resilient industry.”
Confidence is returning
“ The latest VDMA economic survey on valves shows that sentiment in the industry has now improved noticeably,” adds Dr. Laura Dorfer, Managing Director of VDMA Valves.“ More companies are once again anticipating stable or good business performance. Only a few still expect the situation to deteriorate further. The outlook for international markets is also more optimistic again.” Positive momentum is currently coming in particular from the pharmaceutical, shipbuilding, and energy sectors. In addition, many companies anticipate new business opportunities in the growing defence sector.“ It is particularly encouraging that the positive sentiment is already being confirmed by market trends,” says Dorfer.“ Order intake has been showing a clear upward trend again for several months.”
Recovery expected in the second half of the year
Against this backdrop, the trade association anticipates that business will pick up again in the second half of the year, particularly in key foreign markets. For 2026 as a whole, performance is currently expected to be on par with the previous year. The industry hopes to gain additional momentum from the leading international trade fair, Valve World Expo, which will once again bring together trade visitors from around the world in Düsseldorf at the end of the year. Companies plan to use the event to present their technologies to an international audience, establish new contacts, and explore business opportunities.
Export business holds steady
Exports reached a value of 2.8 billion euros in the first six months of 2026, representing a slight increase of 2.8 percent. The European Union remains the most important market region. Stable business within Europe plays a key role in offsetting the weakness of individual markets. There were shifts among the industry’ s key export markets. With exports up 11.8 percent to 313.1 million euros, the U. S. emerged as the industry’ s most important single market. China, by contrast, lost significant momentum and fell behind the U. S. to second place. Exports to China fell by 14.1 percent to 266.9 million euros in the first half of the year. France followed in third place with exports of 163.5 million euros( up 1.4 percent).“ Access to the Chinese market remains challenging,” reports Axel Weidner.“ On the one hand, key end-user industries there are no longer growing as dynamically as in the past. On the other hand, our member companies are increasingly reporting barriers to market access and a stronger preference for local suppliers. This is reflected in the declining export figures.”
Opportunities from infrastructure and reconstruction projects in the Middle East
The outlook for the Middle East has recently improved again. Despite the continuing tense geopolitical situation, many VDMA members see opportunities there in the context of future reconstruction projects and infrastructure investments.“ The outlook in key foreign markets has noticeably brightened,” Weidner summarises.“ If this trend continues, our industry will be able to overcome the slump of the first half of the year as the year progresses.”
48 Valve World October 2026 www. valve-world. net