China's valve industry started late. In the 1960s, it began to develop single seat valve, double seat valve and other products, mainly imitating the products of the former Soviet Union. Due to the backward machinery industry and low machining accuracy, the product leakage is large, but it can still meet the general control requirements of the industrial production process at that time.

      In the 1990s, China's regulating valve industry began to develop rapidly after introducing and digesting foreign advanced technologies, filling some gaps in special industrial control, improving the level of China's regulating valve industry and shortening the gap with foreign countries. But on the whole, the valve manufacturing industry in China at that time was still based on basic casting.

      After 2010, with the constant acceleration of China's economic construction, China's valve manufacturing enterprises have gradually had enough capital costs to carry out high-tech research and development. China's valve manufacturing industry has thus entered the transition process from low-end valve casting to high-end valve customized manufacturing.

      At present, domestic key valve manufacturers have been able to design and manufacture various valves according to international standards such as ISO international standards, DIN German standards, AWWA American standards, and some manufacturers' products have reached the international advanced level.

      Benefiting from industrial development, urban construction and global economic integration, China's valve manufacturing industry has developed rapidly. It is estimated that the scale of China's valve market in 2020 will be 12.69 billion US dollars, a year-on-year decrease of 12.73%, mainly due to the impact of the Neocoronal Pneumonia epidemic, and the revenue of China's valve manufacturers in 2020 will decline.

      In view of the time limit of establishment, the number of new valve manufacturing enterprises in China has gradually increased in recent years, showing an increasing trend. Since 2010, an average of 670 new businesses have been added annually. Among them, the growth rate was the highest in 2018, with 890 new related enterprises added in a single year. As of July 30, 2021, 232 new enterprises have been added in 2021.

      At present, there are many enterprises in the valve manufacturing industry in China. On the one hand, the low technical barriers and capital barriers result in the low concentration of China's valve manufacturing industry. The proportion of valve raw material steel in the operating cost is about 85%, and the labor cost is about 10%. Large enterprises have no absolute cost advantage in terms of capital cost because large-scale production cannot significantly reduce the cost. On the other hand, there are universal valves and customized valves. The market demand in the field of customized valves is diversified and decentralized small orders, which gives small enterprises flexible advantages. Therefore, many small enterprises also have a certain living space.

      According to the data of China General Machinery Industry Association, the number of enterprises above designated size in China's valve manufacturing industry fluctuated from 2016 to 2019. From 2016 to 2018, the number of enterprises in the industry showed a downward trend, reaching 1702 in 2018, a year-on-year decline of 0.7%, the lowest in history; In 2019, the number of industrial enterprises rebounded to 1809, with a year-on-year growth of 6.29%. According to the data on the growth rate of the number of enterprises related to valve manufacturing among enterprises, the number of enterprises above designated size in China's valve manufacturing industry in 2020 is estimated to be 1899.

      According to the forecast data of GIA, from 2021-2026, the compound annual growth rate of China's valve manufacturing industry will be 6.2%. It is estimated that by the end of 2026, the scale of China's valve manufacturing market will reach US $18.2 billion, an increase of 43.47% over 2020.

      To sum up, China's valve manufacturing industry is in the transition period. On the one hand, with the promotion of the fourth industrial revolution with emerging technologies such as artificial intelligence as the core technology, China's valve manufacturing industry is transforming to the intelligent direction; On the other hand, with the continuous improvement of China's R&D capability, the valve manufacturing industry in China is gradually "tackling" high-end valves。