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Analysis of the status and prospects of the valve industry in 2018

The valve is a control component in the fluid delivery system and has functions such as cut-off, regulation, diversion, prevention of backflow, regulation, shunting or overflow relief. Valves for fluid control systems range from the simplest shut-off valves to the extremely complex self-control systems available in a wide variety of sizes and sizes. Valves can be used to control the flow of various types of fluids such as air, water, steam, various corrosive media, mud, oil, liquid metals, and radioactive media.

Valves can be divided into industrial control valves and civil valves. Industrial control valves are mainly used to regulate process parameters such as medium flow, pressure, temperature and liquid level in the field of industrial automation process control. According to different classification standards, industrial control valves can be divided into different types:

(1) According to the adjustment form, it can be divided into adjustment type, cut type, and adjustment cut type;

(2) According to the material of the valve body, it can be divided into metal type, non-metal type and metal valve body lining type;

(3) According to the driving method, it can be divided into electric type, pneumatic type, hydraulic type and manual type;

(4) According to the temperature range, it can be divided into ultra-low temperature valve, low temperature valve, normal temperature valve, medium temperature valve and high temperature valve;

(5) According to the pressure range, it can be divided into vacuum valve, low pressure valve, medium pressure valve, high pressure valve and ultra high pressure valve.

I. Analysis of the development status of the valve industry

At present, there are 30 valve companies in the country trading in Shenzhen, Shanghai, Hong Kong and New Third Board markets. These 30 valve companies vary in size and product range, and to a certain extent truly reflect the current status of domestic valve companies. In addition, according to the statistics of the Valve Branch of China General Machinery Industry Association, in 2015, there were 1,806 national valve enterprises above designated size (including enterprises with annual sales income of more than 20 million yuan), and it is calculated that only 30 valve companies that have been listed only account for the total. 1.66%. According to the annual report data disclosed by the above 30 companies, "International Control Valve Magazine" counts 18 large-scale enterprises with sales exceeding 100 million yuan from January to December 2016, accounting for 60% of the total.

It is expected that in the next few years, with the rapid development of China's economy and the improvement of industrial automation, the transformation and upgrading of China's equipment manufacturing industry and the country's investment in oil and gas, petrochemical, environmental protection, electric power, metallurgy and other fields continue to grow, China's control The overall size of the valve market will maintain rapid growth.

Among the global industrial valve market demand, oil and gas fields including drilling, transportation and petrochemicals accounted for the highest proportion, reaching 37.40%, followed by energy and power and chemical industry, accounting for 21.30% of the global industrial valve market demand and 11.50%, the market demand in the first three major areas accounted for 70.20% of the total market demand. In the application field of domestic industrial valves, the chemical, energy, power and oil and gas industries are also the most important markets for valve sales. The market demand for valves accounts for 25.70%, 20.10% and 14.70% of the total domestic industrial valve market, respectively. Accounted for 60.50% of all market demand.

Domestic industrial valve market demand structure

From the perspective of market demand, the demand for valves in the future of water conservancy and hydropower, nuclear power and oil and gas industry will remain strong, mainly in the following aspects:

1. Water conservancy and hydropower field

The "Energy Development Strategic Action Plan (2014-2020)" issued by the General Office of the State Council pointed out that by 2020, the conventional hydropower installed capacity will reach 350 million kilowatts. The increase in hydropower installed capacity will bring a large demand for valves, and the continued growth of water and hydropower investment will stimulate the prosperity of water industry valves.

2. Nuclear power and other energy fields

It is predicted that energy demand in developing countries is a major factor driving demand development. The nuclear power industry's capital investment in valves is even greater because they are one of the most expensive and critical components of the entire plant, and global nuclear power capacity is expected to increase by more than 130,000 MW by 2031. And the valves used in these important areas are so expensive that a small shut-off valve can cost $20,000, and a 38-inch steam isolation valve can cost more than $1 million. It is also expected that the capacity of thermal power generation will also increase, thus providing a huge market for valves. Not only that, but pollution control equipment and carbon dioxide capture devices will further increase the need for valves, which are all equipment that must be installed. Even renewable energy sources, such as solar-to-steam power plants, use valves in large quantities. In China, according to the Energy Development Strategic Action Plan (2014-2020), China's nuclear power sector will strive to achieve a nuclear power installed capacity of 58 million kilowatts by 2020, and the capacity under construction will reach more than 30 million kilowatts. The increase in investment in nuclear power, the increase in installed capacity of nuclear power, and the high price of valves in nuclear power will bring a broad market space for China's valve industry.

3. Oil and gas field In 2017, China's natural gas production was 149 billion cubic meters. The Energy Development Strategic Action Plan (2014-2020) pointed out: efforts should be made to build 8 large-scale natural gas production bases with an annual output of more than 10 billion cubic meters; In the year, the accumulated new natural gas proven geological reserves are 5.5 trillion cubic meters, with an annual output of 185 billion cubic meters of conventional natural gas. The investment in domestic oil and gas pipelines will drive the continued expansion of the industrial valve market for oil and gas pipelines. It is estimated that by 2018, the demand for oil and gas valves in China will reach 1.183 billion US dollars, with an average annual growth rate of 8.5%.

China's natural gas production (100 million cubic meters)

It is estimated that the demand for industrial valves will reach 100 billion US dollars by 2030. The energy demand of developing countries is the main factor driving demand development. It is expected that the growth rate of China's industrial valve industry market will remain stable from 2015 to 2017. About 7%, far higher than the growth rate of the global industrial valve industry.

With the technological innovation and industrial progress and development, the development speed of oil and natural gas continues to increase, and the related supporting competition in various industries is becoming increasingly fierce. The development of valves in the energy field in China has been developed in recent decades, and the product development, performance, quality and reliability. Great progress has been made in terms of sex and service. The valve industry is also developing in the direction of high automation, intelligence, multi-function, high efficiency and low consumption. Valves are a must for sewage treatment, papermaking, metallurgy, oil and gas, and production processes. In the next 10 years, new valve products for major projects such as nuclear power, hydropower, large petrochemicals, oil and gas gathering and transportation pipelines, coal liquefaction and metallurgy will become the focus of development, and it is expected to lead the rapid growth of the entire energy valve market.

Second, favorable factors and unfavorable factors affecting the development of the industry

1. Fixed asset investment is one of the main driving forces for China's economic growth. China's urbanization and industrialization process has accelerated, and infrastructure construction has been continuously promoted. It is expected that for a long period of time in the future, fixed asset investment will remain an important force driving China's economic development. In the energy, power, chemical, metallurgy, paper, water treatment and other industries, a number of major national engineering projects will start construction. Valves are widely used in various fields of the national economy, and the rapid growth of fixed asset investment will drive the continuous increase in demand for domestic valve products.

2. After years of development and accumulation, the gap in production processes between domestic manufacturers and foreign manufacturers is shrinking. With the improvement of the overall technical level of the domestic manufacturing industry, the domestic valve industry has also received certain technical support in the fields of production machine tools and production materials, which has improved product quality, increased product types, and reduced the cost of domestic valve products. It will help improve the core competitiveness of domestic valve companies.

3. Due to the overall development level of the industry, there are still many gaps between domestic control valve products and well-known brand imported products, mainly in terms of sealing, design, service life, electric device and pneumatic device technology. Therefore, in the complex conditions of many key areas, the control valves of well-known foreign brands are still the mainstay. In addition, foreign companies occupy a relatively strong and active position in terms of brand awareness, product quality level, and technical level compared with domestic enterprises.

4. From the market level, domestic valve companies are mostly in the low-end market of the valve industry. The valve products in the low-end market are highly versatile, the technical content is not high, the barriers to entry are low, and there are many enterprises in the industry. The overall industry is highly competitive and the market concentration is very low. As the number of new entrants in the industry continues to increase, competition will become more intense, and the profit level of the low-end valve market will also decline.

Technical Support: Lianke