The valve industry is featured with small scale of production and low industry concentration in China. According to statistics, China has over 3,000 valve manufacturing enterprises, which is the largest in the world. However, most of these enterprises are of small scale and family-owned, among which there are no more than 500 enterprises with annual sales revenue reaching CNY 5 million, and only a dozen enterprises with annual sales revenue exceeding CNY 100 million. The total market share of the first ten enterprises is only around 8% and 9%. Low industry concentration brings about many bad effects, such as outdated technology, low-price competition and less influential brands.
From January to December in 2016, China imported 859,210,000 sets of valves, with an increase of 18.9% YOY. The import value was USD 5,379,357,000, decreasing by 5% YOY. The following chart describes import volume of valves in China in 2016.
Chart Import Volume of Valve in China, 2016
|Month||Import Volume (ten thousand sets)||Import Value (USD, thousand)||YoY Comparison in Quantity (%)||YoY Comparison in Value (%)|
Source: General Administration of Customs of the People’s Republic of China
According to CRI, there are currently over 3,000 valve manufacturing enterprises in China.
The competition among valve manufacturers is fierce and no one has yet monopolized the global market.