DUBLIN, November 2, 2016 /PRNewswire/ -- Research and Markets has announced the addition of the "Assessment of China's Market for Control Valves" report to their offering.
The report estimates that the domestic market of control valves in China is valued at nearly RMB 33 Bn, or USD 5.1 Bn, and sold roughly 4.5 million units as of the end of 2015. The study finds that the market will slightly shrink in the next few years, driven by China's economic slowdown and restructuring of industries. As the Chinese industrial sector has gained experience, the country is currently looking to reform its manufacturing abilities away from lower-end production; an initiative that drives industrial production towards automated processes and advances in quality of production. This additionally involves the reduction of toxic emissions, mainly by energy producers and oil refiners, which is promoted by the government due to the pressing social concern regarding urban pollution. The resulting technological advancements of these end-user markets prompt the substitution of inferior control valves with smarter products that reach global production standards. However, the Chinese economic slowdown has damaged industries' capability to reform, as many see a downturn in revenue for the first time in decades. Some industries, such as metallurgy and papermaking, have found themselves in a state of overcapacity in the midst of intensified production, causing sudden downsizing and elimination of large quantities of capacity. Other markets in China are experiencing investment insecurity, as the once unquestionable rapid growth of the economy is no longer a matter of certainty. The decline in capital spending has caused industries to divert their capital investments from new projects to updating old facilities in hopes of decreasing production costs and increasing efficiency. Control valve demand has therefore shifted purpose, as purchased valves no longer serve for new equipment but higher quality valves are wanted for their superior capabilities and reliability, as they serve to upgrade production processes.