The setting up of new plants to meet the ever-growing energy needs in China is lending momentum to the industrial valves market in the country’s power industry. Replacement and retrofit demands from existing plants too are expected to boost the adoption of industrial valves in the Chinese power industry.
New analysis from Frost & Sullivan, China’s Clean Energy Revolution Attractive Acquisition Opportunities in the Chinese Industrial Valves Market in the Power Industry (frost.com/nf32), finds that the market earned revenues of $1.05 billion in 2014 and estimates this to reach $1.81 billion in 2020.
“The growing preference for renewable energy sources will lead to the construction of new hydroelectric and thermal power plants, widening the market for industrial valves in the power industry,” said Frost & Sullivan Industrial Automation and Process Control Research Analyst Zi Ning Chong. “The spike in natural and shale gas production will add to sale volumes.”
The time is ripe for mergers and acquisitions (M&As) in the Chinese industrial valves market for the power industry. M&As are expected to control challenges such as price wars. However, budget uncertainties limit M&A activity and delay investment-based decision making. Fierce competition due to the high price sensitivity of end users further curbs profit.
“Ensuring competitive pricing and delivering customized solutions will cement brand loyalty,” stated Chong. “Offering integrated solutions will deliver more business value for end users and provide a distinct advantage for manufacturers in the Chinese industrial valve space.”
China’s Clean Energy Revolution Attractive Acquisition Opportunities in the Chinese Industrial Valves Market in the Power Industry is a Market Insight that is part of the Industrial Automation & Process Control (industrialautomation.frost.com) Growth Partnership Service program. This Insight analyzes current and future trends in the Chinese industrial valves market based on the impact of various market drivers, restraints and challenges on different end-user industries. The research uses the competitive advantage and market positioning (CAMP) tool to evaluate potential mergers and acquisitions within the market.
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China’s Clean Energy Revolution Attractive Acquisition Opportunities in the Chinese Industrial Valves Market in the Power Industry / NF32-10