The first is the South-to-North Water Diversion project in China. The amount of water 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. The demand for the valves for the entire South-to-North Water Diversion Project can be imagined. Second, 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. 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.
However, in the face of such a huge future market, how many orders can China's valve manufacturers take from the middle? In the confrontation with foreign capital, what is the difference between them? Of these problems, I am afraid that China's valve manufacturers are most concerned about.
First, the gap in industrial structure. China's valve manufacturing enterprises 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 companies with less than 500 annual sales revenue of 5 million yuan, only a dozen companies with annual sales revenue of over 100 million yuan, and market share 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.
Second, the gap in the overall industrial chain. As a kind of mechanical equipment, valve production is in the downstream of the entire industrial chain. The development level of steel, sealing materials, and machining and other industries will have an important impact on the valve's technical parameters. 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 accuracy of the machining affects the interface seal and the valve. Head and valve seat sealing grade important factors. In China, there are certain gaps between these technologies in comparison with foreign countries, which has also led to the domestic valve manufacturers in the production of high-end products, the relevant technology of the elbow.
Third, the 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. Under such circumstances, the valve manufacturers have chosen a professional development path. They are not satisfied with producing 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 was 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.
Fourth, the gap in brand influence. According to the information held by China International Bidding Network, many foreign valve manufacturers in various professional fields, their 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. China's famous domestic valve brands, such as: Shanghai Hongfeng Valve Co., Ltd. 'Feng' brand valve, the nuclear Su Su's 'sufa' brand and so on. All have been rooted in the hearts of consumers. So that engineers will think of them at the first time during the design process.
Analysis of Opportunities and Challenges of Global Valve Market Suppliers in 2011
World Water Treatment Equipment giant US Watts Industry Group has made predictions that the total annual demand in China's valve market is no less than 10 billion yuan. 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 other words, as a Chinese valve market that is still a new type rather than a replacement, the potential and explosiveness of demand will be staggering.