China’s Control Valve Market to Grow Nearly 11% Annually
China is the only country worldwide currently providing double-digit growth for control valve suppliers. China's control valve market is expected to grow at a compounded annual growth rate (CAGR) approaching 11% over the next five years.
By MRO Magazine
China is the only country worldwide currently providing double-digit growth for control valve suppliers. China’s control valve market is expected to grow at a compounded annual growth rate (CAGR) approaching 11% over the next five years.
The market was $212 million in 2003 and is forecasted to be over $350 million in 2008, according to a new ARC Advisory Group study, Control Valve Outlook for China.
As new investments continue to pour into China’s core process industry sectors, the market offers excellent growth potential for both the near and long-term. Local and global manufacturing companies are creating world-class, production facilities across all the vertical industries.
“These facilities provide cheap labour for export requirements and a local facility to take advantage of exploding local demand for a wide range of products, created by growing disposable incomes of China’s large population.
Both global and homegrown suppliers see tremendous opportunities in China, making the market intensely competitive,” according to senior analyst David Clayton, principal author the study. .
As China continues to make progress towards becoming a global market economy and the country becomes synonymous with low-cost manufacturing, control valve suppliers around the world are increasing efforts to gain access to the country’s huge potential.
Most control valve suppliers investing in China are thinking beyond the short-term opportunity of obtaining low-cost labour. Despite concerns over such issues as intellectual property protection, fair business practices, and regulatory mechanisms, a number of suppliers are pushing ahead to set up technology transfer alliances, joint ventures, and wholly owned subsidiaries in China.
China’s electric power industry has a large number of thermal power plants, accounting for roughly three-quarters of the country’s power capacity. Many of the country’s thermal power plants use outdated technology and require improvement. Growing realization in China that adopting new technologies and improving plant efficiency as an efficient way of lowering capital expenditures is creating vast opportunities for control valve suppliers.
For more information on this study, visit www.arcweb.com/res/cvc.