In the 1980s, China's hydraulics entered a period of rapid development and successively introduced more than 60 advanced foreign technologies. China's hydraulic and pneumatic power machinery and component manufacturing industries are still in the transitional stage from the growth stage to the mature stage. The industry has increased technological transformation and technological breakthroughs. The company has begun to realize large-scale production. It is expected that the hydraulic and pneumatic market will continue to expand in the future.

Major listed companies: Hengli Hydraulics; Eddie Precision; AVIC Heavy Machinery; He Forging Intelligence

The core data of this article: industry market scale; industry production and sales scale; enterprise revenue scale

1. The development history of China's hydraulic and pneumatic power machinery and component manufacturing industries

China's hydraulic (including hydraulic), pneumatic and seal industries are relatively early, and their development history can be roughly divided into four stages.

2. China's hydraulic and pneumatic power machinery and component manufacturing industry cycle

The life cycle of the industry mainly includes four development stages: the introduction period, the growth period, the maturity period and the decline period. China's hydraulic and pneumatic power machinery and component manufacturing industries are in the period of transition from the growth period to the mature period.

3. China's hydraulic and pneumatic power machinery and component manufacturing industry supply analysis

The statistical results of the product output data of hydraulic components and pneumatic components through WIND show that the output of pneumatic components in China is higher than that of hydraulic components. The total output of the two products in 2019 was 639.96 million pieces; in 2020, due to the impact of the epidemic, the output of hydraulic components and pneumatic components will decrease slightly, and the total output of the two products in 2020 will be 627.73 million pieces.

4. Demand analysis of China's hydraulic and pneumatic power machinery and component manufacturing industries

According to data disclosed by the Shanghai Liquid and Gas Tight Industry Association, in 2020, the sales output value of key enterprises in the liquid and gas tight industry will be 63.93 billion yuan, an increase of 11.1% year-on-year. Sub-industry situation: the hydraulic industry completed 28.69 billion yuan, an increase of 20.1%; the hydraulic industry completed 720 million yuan, an increase of 7.0% (for reference only); the pneumatic industry completed 16.56 billion yuan , An increase of 12.6% year-on-year; the sealing industry completed 17.97 billion yuan, a year-on-year decrease of 1.7%.

5. The competitive landscape of China's hydraulic and pneumatic power machinery and component manufacturing industries

In recent years, China's hydraulic and pneumatic power industries have continued to develop, but there is still a big gap between domestic brands and world-renowned companies.

Representative companies in the first echelon of the global hydraulics industry include well-known multinational companies such as Lexus, Eaton, Parker, and KYB. These companies have relatively developed technologies. At present, due to technical barriers, most of the domestic high-end hydraulic parts need to be imported, so foreign hydraulic parts Manufacturers occupy more than 60% of the high-end hydraulic parts market;

The representative companies in the second tier are mostly leading companies in various countries, such as Hengli Hydraulics (601100), Eddie Precision (603638), Danfoss, Kawasaki, etc. These companies entered the industry earlier, and their products have a certain degree of popularity, while achieving A certain technological breakthrough;

The third echelon is a domestic domestic hydraulic enterprise, which is small in scale, and most of them are still in development.

6. Operation status of major companies in China's hydraulic and pneumatic power machinery and component manufacturing industries

At present, China's hydraulic and pneumatic industry is dominated by non-listed companies, with fewer listed companies; there are more exports of hydraulic and pneumatic components, and all companies have established extensive sales networks at home and abroad. Among them, Hengli Hydraulics, as the leading company in the industry, has a total revenue of 7.855 billion in 2020.

Chart 6: Operating conditions of major companies in China's hydraulic and pneumatic power machinery and component manufacturing industries (1)

7. Product application trends in China's hydraulic and pneumatic power machinery and component manufacturing industries

With the popularity of the Internet of Things and the "carbon neutral" policy requirements, it is predicted that hydraulic and pneumatic components will be widely used in the Internet and green economy in the future.

8. Forecast of the industrialization development trend of China's hydraulic and pneumatic power machinery and component manufacturing industries

—— Expansion of production and efficiency has become the development trend of the industry

The "Fourteenth Five-Year Plan" proposes to first improve the industrial chain and supply chain level, forge the industrial chain and the long board of the supply chain, and build an emerging industrial chain based on China’s industrial scale advantages, supporting advantages and first-mover advantages in some areas. Traditional industries are high-end, intelligent and green.

Under this trend, investment in China's hydraulic and pneumatic power machinery and component manufacturing industries is also mainly concentrated on the construction of intelligent and high-end production lines. Starting in 2018, leading companies in the hydraulic industry have invested in the construction of intelligent production lines to achieve machine networking. ,increase productivity.

——The trend of high-end products

China's hydraulic industry started late, with relatively lack of core technology, and the overall industry is large but not strong. In particular, high-end hydraulic components such as hydraulic pump valves, motors, and precision castings have long been monopolized by foreign companies and rely heavily on imports.

Data shows that 70% of China’s high-end hydraulic products are imported from abroad. In the high-end construction machinery market represented by excavators, more than 90% of hydraulic parts are controlled by others, and 70%-80% of profits are obtained by foreign hydraulic product manufacturers. The heavy dependence on imports of high-end hydraulic components has become a bottleneck for the development of China's equipment manufacturing industry. Therefore, domestic hydraulic component manufacturers have begun to introduce equipment, upgrade workshops, and carry out high-end layouts.

——The scale of industrial clusters continues to expand

By cultivating and developing advanced manufacturing clusters and relying on the foundation and characteristics of industrial development, local governments will effectively promote the agglomeration of resources such as industry, innovation, talent, capital, and data in a certain area, and enhance the synergy of regional development. Advanced manufacturing clusters have established a networked coordination mechanism for government, industry, academia, and research to promote the effective connection of manufacturing and technological innovation, and accelerate the transformation of scientific and technological innovation results into large-scale commercialization.

At the same time, strengthen the horizontal division of labor and vertical integration of the industrial chain, promote the close matching of upstream, midstream and downstream "specialized, special-new" small and medium-sized enterprises, make the supply chain of the industrial chain more flexible and resilient, and effectively form economies of scale. Important industrial clusters in China include Fuxin National Hydraulic Industry Cluster Demonstration Base, Luzhou National Hydraulic Industry Cluster Demonstration Base, Fenghua National Pneumatic Industry Cluster Demonstration Base, etc.