Industrial valves are an important accessory for controlling the flow of media in industrial pipelines. Industrial valves are widely used in China, and about 80% of the demand in 2019 came from the renewal market. The industry market size reached 210.942 billion yuan, with a growth rate maintained at 10% -6%. The following is an analysis of investment in the industrial valve industry.
The global industrial valve market is mainly concentrated in economically and industrially developed countries and regions. According to the analysis data of the industrial valve industry, the top 10 important consumer countries for industrial valves globally in 2019 were the United States, China, Japan, Russia, Germany, India, Brazil, Saudi Arabia, France, and South Korea. Among them, the top three ranked valve markets in the United States, China, and Japan have a market size of 8.848 billion US dollars, 7.346 billion US dollars, and 2.791 billion US dollars, respectively.
The investment analysis of the industrial valve industry indicates that industrial valves in China are mainly used to regulate process parameters such as medium flow rate, pressure, temperature, and liquid level in the field of industrial automation process control. In 2019, there were significant changes in the demand structure for industrial valves in China, with a significant increase in the proportion of chemical and papermaking industries. The demand in the oil and gas sector is relatively low, but the proportion is increasing, from 8.52% in 2012 to 14.70% in 2017.
As of December 2019, the market size of China's industrial valve industry reached 210.942 billion yuan. 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.
At present, there are a total of 1806 industrial valve enterprises (with annual sales revenue of over 20 million yuan) in China, and it is calculated that only 1.66% of the 30 valve enterprises have been listed. According to the annual report data disclosed by the 30 companies mentioned above, there were 18 large enterprises with sales exceeding 100 million yuan in 2019, accounting for 60% of the total.
From the perspective of product structure, most of China's industrial valve products are concentrated in mid to low-end products, while for systematic, integrated, automated valve products or actuator systems, China's product production capacity is relatively weak. The investment analysis of the industrial valve industry points out that in terms of related products such as oil extraction, petrochemical smelting, oil and gas transportation, and nuclear power specialized automatic control valves, importing from abroad is still the main way for such high-end valve equipment.
From the perspective of product research and development, on the one hand, due to the relatively backward research and development capabilities and reliability of domestic products, and on the other hand, because such products are related to economic security, it is often seen that high-end valve equipment research and development projects are included in the national major technological development special projects in major equipment technology projects. High end valve equipment in the oil and gas industry, power industry, and chemical industry will become a key investment focus for large domestic valve enterprises.
Overall, China's industrial valves have made great progress in product research and development, performance, quality, reliability, and service after rapid development, and have been able to produce over 3000 models and 40000 specifications of industrial valve products. It is expected that state-owned enterprises will focus on improving their institutional mechanisms, enhancing modern enterprise systems, and promoting the healthy development of enterprises; After more than 30 years of hard work, private enterprises have made great progress, but it is not easy to take them to the next level. The above is all the content of investment analysis in the industrial valve industry.