Against the backdrop of an average growth rate of 2.53% in industrial value added and a growth rate of 2.69% in manufacturing value added, the global production of industrial valve products reached 19.4 billion in 2019, with a significant increase in the proportion of industrial and paper products. The demand in the oil and gas sector is relatively low. The following is an analysis of the industrial valve industry layout.
The sustained and stable growth of the global economy has driven the development of downstream industries such as oil and gas, electricity, water treatment, chemical industry, and urban construction. The analysis of the industrial valve industry indicates that the global industrial valve industry is developing rapidly, and the industrial valve industry has also achieved rapid development. In 2019, the global industrial valve market size increased to 123.56 billion US dollars.
The industrial valve industry layout points out that in 2019, the scale of China's industrial valve market was 12 billion US dollars, accounting for 19.5% of the global market. According to the development speed and investment intensity of various industries in China, the proportion of the domestic industrial valve market to the global market is steadily increasing. In 2020, the global industrial valve market size was about 64 billion US dollars, and China's proportion will reach 20% -21%. Therefore, the domestic market size in 2020 is about 12.8-13.5 billion US dollars.
From a market perspective, most domestic valve enterprises are located in the low-end market of the valve industry. The valve products in the low-end market have strong universality, low technological content, low entry barriers, numerous industry enterprises, and a highly competitive overall industry situation with low market concentration. With the continuous increase of new entrants in the industry, competition will become more intense, and the profit level of the low-end valve market will also decrease.
From the perspective of enterprise layout, the domestic valve industry is accelerating its reshuffle, and large valve manufacturers may stand out in the future. On the one hand, small and micro enterprises with less standardized operations and lower core competitiveness are gradually withdrawing from the market, while the market share of large domestic valve enterprises is steadily increasing. On the other hand, there is still significant room for improvement in the size of domestic valve enterprises compared to international giants (only Newway has a revenue of over 2 billion yuan, with about 7-8 companies between 1-2 billion yuan). The author believes that with the recovery of downstream markets and the improvement of international competitiveness of enterprises, the market share of domestic leading enterprises represented by Newway will continue to increase in 2020.
At present, industrial valve production enterprises in China are mainly concentrated in Zhejiang, Jiangsu, and Shanghai, with 26 valve companies trading in the Shenzhen, Shanghai, Hong Kong, and New Third Board markets. The industrial valve industry layout points out that these 26 valve companies have different sizes and product types, which to a certain extent truly reflects the operating status of domestic valve enterprises. In 2019, 17 out of the 26 companies mentioned above had a revenue of over 100 million yuan.
China is capable of producing over 3000 models and over 40000 specifications of industrial valve products. The categories include gate valves, globe valves, throttle valves, plug valves, ball valves, butterfly valves, diaphragm valves, check valves, safety valves, pressure reducing valves, drain valves, and regulating valves, totaling twelve categories. Petrochemical and coal chemical valve products, as well as long-distance pipeline supporting valves, have been identified as key development projects for new products in the industrial valve industry during the 13th Five Year Plan period.
Overall, the size of industrial valve enterprises in China is still relatively small compared to foreign giants, and the market pattern is relatively scattered. China's industrial valve industry shows a pattern of overcapacity of low-end industrial valves, full competition in the middle end industrial valve market, and monopoly of foreign enterprises in high-end and special industrial valve markets. It is expected that the improvement of the prosperity of the downstream industry will drive the increase of related fixed assets investment, and further drive the growth of demand for industrial valves. The above is all the contents of the industrial layout analysis of the industrial valve industry.