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According to the scientific concept of development, in order to ensure the coordinated development of the economy in the future and to improve people’s lives, China will inevitably put infrastructure construction such as water, electricity, gas, and heat in the top priority. This is precisely where the valve is used. In addition, there are many projects such as the West-East Gas Pipeline, the transformation of old industrial bases, the construction of urban pipeline networks, residential projects, sewage treatment, and irrigation and water conservancy, all of which will trigger a huge demand in the valve market.
The first is the South-to-North Water Diversion project in China. The amount of money used for valve purchases is as high as tens of millions of yuan in the length of 70 kilometers from the suburbs of Beijing to the urban areas. Then the demand for the entire South-to-North Water Diversion Project on the valve can be imagined. Secondly, in order to solve the problem of power shortage, the large-scale hydropower project is not only a top priority for the Chinese government, but also a long-term task.
However, in the face of such a huge future market, China's valve manufacturers can exactly count how many orders they have received in order to compete with foreign capital. How big are their gaps in the end, I am afraid that China's valve manufacturers are most concerned about.
In China's current valve market, high-pressure valves still need to rely on imports, except for low-pressure valves that are acceptable in the international market. Under the continuous optimistic view of the macro-economy, most of the valve industry's production and sales indicators have maintained rapid growth. However, affected by the price war, the industry's sales revenue and profits have dropped significantly from the same period of last year.
The gap of the overall industrial chain is a kind of mechanical equipment. The valve production is downstream of the entire industrial chain. The development level of steel, sealing materials, and mechanical processing will have an important impact on the technical parameters of the valve. The strength, ductility and corrosion resistance of steel directly affect the high pressure and corrosion resistance of the valve; the production level of the sealing material determines the medium and the pressure that can be applied to the valve; the precision of machining affects the interface seal and valve Head and valve seat sealing grade important factors.
The difference in degree of specialization As a general-purpose pipeline equipment, the valve has been widely used in many fields, including water conservancy and hydropower, urban pipe network, petroleum and petrochemical, sewage treatment and many other industries. Due to different conditions in different industries, different projects in terms of working conditions, media, seals, etc., technical requirements for valve equipment types, materials, pressure levels, etc. are not the same, thus resulting in further valve equipment for different industries. Market segmentation.
Disparity in the industrial structure China's valve manufacturing companies are too small and their industrial concentration is too low. According to the data available to Watts, there are currently more than 3,000 valve manufacturing companies in the country, the number of which ranks first in the world. However, these are mostly low-level, small-scale, family-run enterprises. There are less than 500 companies with annual sales revenue of 5 million yuan, and only a dozen companies with annual sales revenue of over 100 million yuan. Market share is among the top 10 companies. The combined market share of the companies is only 8% to 9%. Due to the low concentration of the industry, many unfavorable factors such as backward technology, low-price competition, and lack of influential brands have caused such a huge Chinese valve market to still have no real name brand.
The gap in brand influence According to the data, many foreign valve manufacturing companies in various professional areas, its brand effectiveness has been significantly ahead of domestic enterprises. In the water treatment industry, brands such as VAG and Watts in the United States have already established a leading position in the market; in the field of power, the United States is the absolute leader in Velan; In the industry, American Fisher and Japan KTM can be seen everywhere. Under high-pressure conditions, engineers first thought of Uhde and BASF.
Under such circumstances, the valve manufacturers have chosen a professional development path. They are not satisfied with the production of only a single valve device. Instead, they are committed to providing overall projects through the expansion of product lines or seeking cooperation. solution. The aforementioned American Watts is a typical representative. Initially, they only produced valves dedicated to the field of water treatment, but now they can even independently build a water plant.
With the recovery of the world economy, China's valve products have also experienced an increase in imports and exports. However, due to the large gap between high-end technology and foreign manufacturers, the product technology will become a constraint on the development of China's valve products in the future. bottleneck.
The first is the South-to-North Water Diversion project in China. The amount of money used for valve purchases is as high as tens of millions of yuan in the length of 70 kilometers from the suburbs of Beijing to the urban areas. Then the demand for the entire South-to-North Water Diversion Project on the valve can be imagined. Secondly, in order to solve the problem of power shortage, the large-scale hydropower project is not only a top priority for the Chinese government, but also a long-term task.
However, in the face of such a huge future market, China's valve manufacturers can exactly count how many orders they have received in order to compete with foreign capital. How big are their gaps in the end, I am afraid that China's valve manufacturers are most concerned about.
In China's current valve market, high-pressure valves still need to rely on imports, except for low-pressure valves that are acceptable in the international market. Under the continuous optimistic view of the macro-economy, most of the valve industry's production and sales indicators have maintained rapid growth. However, affected by the price war, the industry's sales revenue and profits have dropped significantly from the same period of last year.
The gap of the overall industrial chain is a kind of mechanical equipment. The valve production is downstream of the entire industrial chain. The development level of steel, sealing materials, and mechanical processing will have an important impact on the technical parameters of the valve. The strength, ductility and corrosion resistance of steel directly affect the high pressure and corrosion resistance of the valve; the production level of the sealing material determines the medium and the pressure that can be applied to the valve; the precision of machining affects the interface seal and valve Head and valve seat sealing grade important factors.
The difference in degree of specialization As a general-purpose pipeline equipment, the valve has been widely used in many fields, including water conservancy and hydropower, urban pipe network, petroleum and petrochemical, sewage treatment and many other industries. Due to different conditions in different industries, different projects in terms of working conditions, media, seals, etc., technical requirements for valve equipment types, materials, pressure levels, etc. are not the same, thus resulting in further valve equipment for different industries. Market segmentation.
Disparity in the industrial structure China's valve manufacturing companies are too small and their industrial concentration is too low. According to the data available to Watts, there are currently more than 3,000 valve manufacturing companies in the country, the number of which ranks first in the world. However, these are mostly low-level, small-scale, family-run enterprises. There are less than 500 companies with annual sales revenue of 5 million yuan, and only a dozen companies with annual sales revenue of over 100 million yuan. Market share is among the top 10 companies. The combined market share of the companies is only 8% to 9%. Due to the low concentration of the industry, many unfavorable factors such as backward technology, low-price competition, and lack of influential brands have caused such a huge Chinese valve market to still have no real name brand.
The gap in brand influence According to the data, many foreign valve manufacturing companies in various professional areas, its brand effectiveness has been significantly ahead of domestic enterprises. In the water treatment industry, brands such as VAG and Watts in the United States have already established a leading position in the market; in the field of power, the United States is the absolute leader in Velan; In the industry, American Fisher and Japan KTM can be seen everywhere. Under high-pressure conditions, engineers first thought of Uhde and BASF.
Under such circumstances, the valve manufacturers have chosen a professional development path. They are not satisfied with the production of only a single valve device. Instead, they are committed to providing overall projects through the expansion of product lines or seeking cooperation. solution. The aforementioned American Watts is a typical representative. Initially, they only produced valves dedicated to the field of water treatment, but now they can even independently build a water plant.
With the recovery of the world economy, China's valve products have also experienced an increase in imports and exports. However, due to the large gap between high-end technology and foreign manufacturers, the product technology will become a constraint on the development of China's valve products in the future. bottleneck.
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