Market Report on China Valve Industry [2010-2019]

1
Market Report on China Valve Industry 2010-2019

2
Summary
The competition among valve manufacturers is
fierce and no one has yet monopolized the global
market. Valve manufacturers in western European
countries like Germany, Britain and France occupy
a market share of 40. In Asia and Pacific
region, valve manufacturing and export
concentrate in India, China and Japan, among
which India is responsible for high-end product
while China and Japan for low-end product. This
brings second-mover advantage to newcomers who
are free from entry barrier and bad
restrictions. As competition in global valve
market grows increasingly fierce, many famous
valve manufacturers have moved their plants from
North America, Europe and Japan to China, India,
Korea and Central Europe.
W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com
3

Since the reform and opening-up, China has
witnessed a rapid development of valve industry
and become the largest valve producer in the
world. Currently, about 50 of valve parts as
well as most valves in the world come from China
given original equipment manufacturer. And China
has also become the largest valve exporter in the
world too. Chinas valve output in 2014 was
10.319 million tons, increasing 28.9 year on
year. In recent years, valve production has kept
increasing not only in central air-conditioning
industry but also in such rising industries as
energy power and steel industry.
W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com
4

Currently, China is the country with the largest
number of valve manufacturers, i.e. over 3000.
And Zhejiang, Wenzhou, Taizhou, Ningbo and Jinhua
in particular, is Chinas largest manufacturing
base and sales center of valve. But most
enterprises there are small family workshops,
among which less than 500 bring in an annual
sales value of CNY 5 million and only a dozen
have a revenue exceeding CNY 100 million. And the
market share of those in the Top 10 only totaled
8-9. DunAn Holding Group and Sanhua Co., Ltd
that are located at Zhuji and Xinchang
respectively. What is notable is that with
capacity concentration, large companies have
expanded and become famous through competition
while middle and small-sized enterprises without
competitiveness may face the risk of being merged
or going bankrupt.
W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com
5

Valve products supporting central
air-conditioning are four-way reversing valve,
globe valve, electronic expansion valve and
electromagnetic valve, among which globe valve
with simple structure and mature technology
differs little among different brands. As profit
is shared among multiple brands, the gross profit
rate becomes the biggest concern of enterprises.
Currently, household air-conditioning system
consisting of electronic expansion valve and
inverter compressor works well by combining the
flow-regulating characteristic of electronic
expansion valve with the frequency conversion
characteristic of inverter compressor. In 2014,
the domestic market of air-conditioner globe
valve and four-way reversing valve is in
depression, both reporting a year-on-year
decrease under limited demand.
W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com
6

On the whole, concentration of valve industry is
low. Low-end producers basically can meet the
domestic demand while high-end producers have
taken part in international competition. Foreign
enterprises with technical advantages remain the
major competitor in high-end market for they
entered the field early and have accumulated rich
experience. In 2014, the market size of central
air-conditioning surpassed CNY 70 billion in
China. Apart from the basic nine categories of
central air-conditioning product, special central
air-conditioning is accelerating its development.
The Chinese government has increased its
investment in nuclear power and set a target of
increasing installed capacity from 4000 GW to 75
GW by 2020.
W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com
7

Suppose a nuclear power project with a capacity
of 100 GW needed cooling equipment of CNY 150-200
million, nuclear powers demand for cooling
equipment will total CNY 11.2 billion in the next
decade. Meanwhile, fixed asset investment led by
the Chinese government grows year by year, the
launching of such projects as west-east gas
transmission, west-east electricity transmission,
south water to north will need large amounts of
valve products. Besides, as industrial age is
around the corner. Driven by many forces, valve
manufacturing in China enjoys good prospects. And
structural upgrading will be its trend of
development. When there are many competitors in
the market, cost advantage will gradually
disappear, which forces companies to improve
product quality so as to take an active part in
market competition.
W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com
8

Although valve industry in China faces such
disadvantages as rising labor cost and lack of
technical talents, its great potential has
created opportunities for foreign enterprises to
enter the market. Readers can get at least the
following information through this
report -policy for valve industry in
China -valve supply and demand in China -key
enterprises and their operation status in valve
market in China -competition in valve market in
China -valve import and export in China -factors
affecting valve development in China
W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com
9

The author suggests the following groups of
people purchase this report -valve
producers -enterprises engaged in valve trade -
enterprises related with valve industry -investors
/research institutions interested in valve
industry in China
W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com
10
Table of Contents
1 Basic Concepts of Valve 2 Supply of Valve
Industry in China, 2010-2014 3 Market Demand for
Valve in China, 2010-2014 4 Competition Analysis
of Valve Market in China, 2010-2015 5 Major Valve
Producers in China, 2010-2015 6 Key Foreign
Enterprises in Valve Market in China, 2010-2015 7
Expectation to Valve Industry in China, 2015-2019
W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com
11
To view the full Executive Summary and Table
of Contents, please visit Market Report on
China ValveIndustry2010-2019 Contact Us-Call
India 91-22-27810772/73Email id
info_at_bharatbook.com Website www.bharatbook.com
Our Blog https//www.bharatbook.com/blog/


W www.bharatbook.com , T  91 22 27810772,
27810773, E  info_at_bharatbook.com