Industrial Valves Market for Power Generation Industry in China

 Market Analysis

    China is the second biggest consumer of industrial valves just after the U.S., with the power generation sector being the second largest industry for industrial valves market in China. In 2014, this industry accounted for 22.3 percent of the total Chinese industrial valves and actuators market.The revenue generated by power generation industry for the industrial valves and actuators market is expected to grow at a CAGR of 9.4 percent from 2014 to 2020.
    There has been significant growth in the number of industrial valve manufacturers in the APAC region, with China being the major contributor in the region. The industrial valves market in China is highly fragmented with the market share of the top five market participants collectively accounting for about 27 percent of the total market. The key global market players in industrial valves space have a strong presence in China with the help of numerous merger and acquisition activities of local market participants. These manufacturing units are equipped to produce valves for sustaining both the internal demand and export to the adjacent Asian countries.
    China’s government has been actively supporting local valves manufacturers with subsidies and lax regulation. In addition to the subsidies provided, the local manufacturing companies find it lucrative to manufacture in China due to the low-cost labor pool, abundant availability of low-cost energy source, and highly competitive raw material suppliers. The implication of all the above-mentioned components is directly related to lower product pricing, providing a means to compete with top manufacturers with global presence.
Based on this array of developments, the industrial valves market in China’s power generation industry is witnessing a strong and sustained growth, with several new opportunities and higher demand in the forthcoming years.