Construction Sector Does Some Heavy Lifting in the Chinese Hydraulic Components Market
The global economic downturn has had far-reaching effects across regions and markets but the Chinese hydraulic components market has managed to stay buoyant because of the demand from construction and industrial machinery sectors. The active real estate market and construction boom will help sustain this trend, especially with the 2010 World Exposition expected to stimulate greater construction activities. Moreover, relief work in the aftermath of natural disasters necessitate numerous excavators, loaders, bulldozers, cranes, and many other heavy construction machinery in which hydraulic components are key parts. Apart from construction, hydraulics components will find application in agricultural and farming machinery. Increased defense budgets due to the need for advancements in aircraft and fighter planes are also aiding the growth of the hydraulics component market. Additionally, the escalating investments in marine and processing industries bode well for market vendors.
The market will be gladdened by the increasing migration of manufacturing to China, since the relative low labor and material costs in the country are huge attractions for manufacturers. However, only the lower-end hydraulic components production is shifting to China, reducing the quantum of benefit. The country is a hot destination for manufacturers from other industries as well and they are not fighting shy of making heavy investments. "Due to the expanding hydraulic components market and the appreciation of Renminbi (RMB) to the U.S. dollar, many foreign investors will further increase their investment in China by setting up more sales offices and enhancing R&D budget," says the analyst of this research. "Foreign participants are expected to overwhelm the Chinese market and maintain their growth trend to increase the revenues and to raise the overall technology expertise of the Chinese hydraulic components manufacturers."
Manufacturers are hoping to pique end-user curiosity by launching many hydraulic-related projects. The flip side of building up such interest is that end users begin to have greater requirements, which tests medium- and small-sized manufacturers. Meanwhile, cost control is fast becoming a challenge due to the intensifying price wars between domestic and foreign manufacturers. "Nevertheless, with new materials and better hydraulic fluids being adopted in production, cost cutting and extended life cycle seem possible," notes the analyst. "Owing to the advanced technology, hydraulic components can better fit into the working environment and reduce the cost of installation and maintenance." The cylinder segment is the most affected by the improved technology and lower costs of domestic products. Greater demand for localization has had large companies expand their product range and indulge in mergers and acquisitions. They have also been establishing more direct trade offices in China to widen their coverage and offer better after-sales service.
This Frost & Sullivan research service titled Chinese Hydraulic Components Markets provides total market size, market and technology trend, and market segment revenue breakdown. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: cylinders, valves, pumps, motors, and others.
Key Topics Covered:
-Chapter 2 Total Hydraulic Components Market: Impact of the Primary Challenges (China), 2007-2014
-Chapter 3 Total Hydraulic Cylinders Market: Market Drivers Ranked in Order of Impact (China), 2007-2014
-Chapter 4 Total Hydraulic Valves Market: Market Drivers Ranked in Order of Impact (China), 2007-2014
-Chapter 5 Total Hydraulic Pumps and Motors Market: Market Drivers Ranked in Order of Impact (China), 2007-2014
-Chapter 6 Total Other Hydraulic Components Market: Market Drivers Ranked in Order of Impact (China), 2007-2014
For more information visit http://www.researchandmarkets.com/research/e7bb4c/chinese_hydraulic
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