Research Report on China Valve Industry, 2017-2021
|発行||China Research and Intelligence||商品コード||291149|
|出版日||ページ情報||英文 60 Pages
A valve is a device that regulates, directs or controls the flow of a fluid by opening, closing, or partially obstructing various passageways.
A Valve is a key device in fluid controlling system, which is generally applied in liquid or gaseous fluid controlling environment. The major application fields include petroleum, natural gas, electric power, chemical industry, water supply and sewage treatment, papermaking, metallurgy, pharmacy and food producing. The development of valve industry is closely related to macro-economy because valves are widely applied to various industrial fields concerning fluid controlling.
According to CRI, the competition among global valve manufacturing enterprises is fierce. Mergers and reorganizations between enterprises emerge frequently, causing the market concentration rate rising. On April, 2017, Emerson finished buying the valve and controlling business under Pentair for USD 3.15 billion.
As the competition in global valve market becomes increasingly fierce, many world-famous valve manufacturers close their plants in North America, Europe and Japan and move to China, India, Korea, etc. in order to reduce cost.
Since China's reform and opening-up, valve industry in China develops rapidly,. China has become the largest valve manufacturer in the globe. Currently, about 50% of global valve parts are purchased from China. More finished valve products are purchased from China considering factors like OEM. China has become the world's largest exporter of valves, but China still needs to import a huge amount of middle to high-end valves annually.
According to CRI, there are over 3,000 valve manufacturing enterprises in China currently, ranking the world's first. Zhejiang is the largest and leading pump valve manufacturing base and sales center in China. The valve enterprises in Zhejiang are located in Wenzhou, Taizhou, Ningbo, Jinhua, etc. Most of these enterprises are of small scale, among which there are no more than 500 enterprises with annual sales revenue exceeding CNY 20 million, and only a dozen enterprises with annual sales revenue exceeding CNY 100 million. The concentration rate of valve enterprises in China is quite low. The sum of market share of the top ten enterprises is less than 10%.
According to CRI, the output volume of valves exceeded 10 million tons in China in 2016. The output volume of valves is on an overall growing trend in China in recent years. The major driving forces of downstream include central air-conditioning, energy power, metallurgy fields, etc.
The market scale of central air-conditioning exceeded CNY 80 billion in China in 2016.
At present, apart from the nine basic types of central air-conditioning, the special central air-conditioning business is developing rapidly in China. The Chinese government expands financial input in nuclear power. The goal of expected installed capacity in 2020 is set from 40 million kW to 75 million kW. One one-million-kW nuclear power project needs refrigeration equipment valued for about CNY 0.15-0.20 billion.
It is estimated that the value of the total demand for refrigeration equipment is about more than CNY 10 billion in the next ten years. Meanwhile, the fixed asset investment led by the Chinese government is increasing annually. The huge projects, including 'West-East Natural Gas Transport', 'West-East Electricity Transmission', and 'South-North Water Transfer Project' need a huge amount of valve products to support. In addition, as China is faced with the approaching of industrialized age, there is an increasing demand for valve products in petrochemical industry, electric power sector, metallurgy sector, chemical industry and urban construction.
According to CRI, the drop of international oil price resulted in the decline of capital expenditure of crude oil tycoon, influencing the global demand for valves. It is estimated that the gradual economic recovery in the U.S. and the world will bring up the fixed asset investment and thus supporting the energy industry in the next few years.
As the urbanization and industrialization accelerates, and the infrastructure construction keeps promoting in China, it is estimated that fixed asset investment will remain the important power driving China's economic development for a rather long period in future. The development in electric power, chemical industry, metallurgy, papermaking, water processing industry will promote China's demand for valve products. In addition, Made in China 2025 formulated by the Chinese government will promote China's valve industry to some extent.
3. Demand of China Valve Market, 2011-2016