Analysis of the market competition pattern of China's domestic water pump industry
Except for rural areas, the domestic demand for domestic water pumps is less, so my country's domestic water pump industry is an export-oriented industry, and most of its products are exported. Manufacturers are mainly distributed in East China, Central China and North China, among which Wenling is the most concentrated, followed by Ningbo and Shanghai. Although there are a large number of water pump manufacturers in my country, the overall technical level is uneven, and the equipment level is quite different. Many small manufacturers focus on assembly, lack product design capabilities, and are difficult to meet the international market certification standards, mainly supplying my country's rural market. At present, the competition pattern of the domestic pump industry is extremely fragmented. There are more than 6,000 manufacturers of various types of pumps in my country, and the number of enterprises above designated size reached 1,249 in 2018.
From a global perspective, the global water pump industry is characterized by a high degree of concentration, mainly concentrated in the American market represented by the United States, the European market represented by Germany and the United Kingdom, and the Asian market represented by China and Japan. The world's well-known pump companies are mainly concentrated in European and American countries. Due to the early start of the industry and the mastery of core technologies, they are the main suppliers of high-end pump products and also an important demander of pump products. Among them, Europe and North America imported small household products from China. Centrifugal pumps account for more than 60% of water. , With the improvement of China's water pump manufacturing capacity, foreign water pump customers have turned to China to find qualified suppliers to establish cooperative relations. At present, some domestic leaders have made great progress in the core fields of water pump injection molding, sealing and testing. Household water pump products And basically meet the standards for entering the European and American markets. According to the Wenling Pump Industry Export Price Classification Index, the export price index of my country's domestic water pumps has grown rapidly since 2019, indicating that the export price of domestic water pumps has risen to a certain extent, showing the improvement of domestic manufacturing capacity and the obvious improvement of the industry's internal prosperity.
From the perspective of the domestic market, the consumption of domestic water pumps shows obvious seasonality. Because the products in the industry are mostly used for household water pumping, garden irrigation and swimming pool drainage, etc., the three seasons of spring, summer and autumn are the peak demand seasons, and the demand in winter is small. Related to the seasonal characteristics of the end consumer market, household water pump distributors in the end consumer market generally purchase in the fourth quarter of the previous year and the first and second quarters of the current year. Therefore, as a manufacturer, the first, second and fourth quarters of each year are the peak production and sales seasons. The third quarter is the off-season. From the domestic regional price index, it can be seen that the prices in East China, South China and other markets have experienced a significant decline in September, and since the fourth quarter, prices in all markets across the country have declined.
Household pump products are quite different from traditional agricultural pumps. Household pumps are mainly used for drainage and sewage and garden irrigation, especially in urban areas, which can be used for water supply of low-rise buildings, watering lawns, garden flowers and trees, cleaning, etc. With the current increase in the area of green space ponds in urban communities, the area of urban green space in my country has increased from 2,134,300 hectares to 3,152,900 hectares from 2010 to 2019. The proportion of some villas with courtyards and old houses has increased, so the demand for water pump products to be used in household/community water supply, drainage and sewage will become another bright spot in the development of the industry in the future.