Core data of this paper: China's valve manufacturing market scale, annual number of new valve manufacturing enterprises, and forecast of China's valve manufacturing market scale

——China's valve manufacturing industry is in transition

China's valve industry started late. In the 1960s, it began to develop products such as single seat valve and double seat valve, mainly imitating the products of the former Soviet Union. Due to the backward machinery industry and low machining accuracy, the product leakage is large, but it can still meet the general control requirements of the industrial production process at that time.

In the 1990s, China's regulating valve industry also began to develop rapidly after introducing and digesting foreign advanced technology, filling in some gaps in special industrial control, improving the level of China's regulating valve industry and shortening the gap with foreign countries. But on the whole, the valve manufacturing industry in China was still based on basic casting.

After 2010, with the continuous acceleration of China's economic construction, China's valve manufacturing enterprises gradually have enough capital cost for high-tech R & D, and China's valve manufacturing industry began to enter the transformation process from medium and low-end valve casting to medium and high-end valve customized manufacturing.

At present, domestic key valve manufacturers have been able to design and manufacture various valves according to international standards such as ISO international standards, DIN German standards and AWWA American standards, and the products of some manufacturers have reached the international advanced level.

——The market scale will decrease slightly in 2020

Benefiting from industrial development, urban construction and global economic integration, China's valve manufacturing industry has developed rapidly. Novel coronavirus pneumonia is China's valve market in 2020. The scale of the valve market in China was 12 billion 690 million US dollars, down 12.73% from the same period last year, mainly due to the impact of the new crown pneumonia epidemic, and the valve manufacturers in 2020 declined in revenue.

——There are many industry participants

According to the establishment time, the number of new valve manufacturing enterprises in China has gradually increased in recent years. Since 2010, there have been an average annual increase of about 670. Among them, the growth rate was the highest in 2018, with 890 new related enterprises in a single year. As of July 30, 2021, a total of 232 enterprises have been added in 2021.

At present, there are many enterprises in China's valve manufacturing industry. On the one hand, the low technical barriers and capital barriers result in the low concentration of China's valve manufacturing industry. Valve raw material steel accounts for about 85% of the operating cost, and the labor cost accounts for about 10%. The cost cannot be greatly reduced through large-scale production. Therefore, large enterprises have no absolute cost advantage in terms of capital cost. On the other hand, there are general valves and customized valves. In the field of customized valves, the market demand is diversified and decentralized small orders, which gives small enterprises the advantage of flexibility. Therefore, many small enterprises also have a certain living space.

According to the data of China General Machinery Industry Association, the number of Enterprises above Designated Size in China's valve manufacturing industry fluctuated from 2016 to 2019. From 2016 to 2018, the number of industrial enterprises showed a downward trend, reaching 1702 in 2018, a year-on-year decrease of 0.7%, the lowest in history; In 2019, the number of industrial enterprises rebounded to 1809, with a year-on-year increase of 6.29%. According to the data on the growth rate of the number of valve manufacturing related enterprises in the enterprise survey cat, the number of Enterprises above Designated Size in China's valve manufacturing industry is 1899 in 2020.

——More than $18 billion is expected in 2026

According to the prediction data of GIA, the annual compound growth rate of China's valve manufacturing industry will be 6.2% from 2021 to 2026. It is expected that by the end of 2026, the scale of China's valve manufacturing market will reach US $18.2 billion, an increase of 43.47% over 2020.

On the one hand, with the promotion of the fourth industrial revolution with emerging technologies such as artificial intelligence as the core technology, China's valve manufacturing industry is transforming to the direction of intelligence; On the other hand, with the continuous improvement of China's R & D capacity, China's valve manufacturing industry is gradually "tackling difficulties" to high-end valves.

Woci valve (Shanghai) Co., Ltd. - brand valve manufacturer, professional valve manufacturer!