China's hydraulic components market segmentation research, to achieve a breakthrough in high-end hydraulic pump valve products.

Hydraulic ProductsIt is the key to control the host to complete various actions. Its technical level and product performance directly affect the automation degree and work reliability of the machine, and directly affect the performance and development of electromechanical products and national defense products. After more than 60 years of development, China has established a preliminary complete hydraulic industrial system. According to the statistics of the Liquid Airtight Association, there are currently more than 1000 domestic hydraulic companies, including more than 300 companies of a certain scale and more than 100 major companies. Among them, Hengli hydraulic, Nakagawa hydraulic and too heavy Yu liquid and other backbone enterprises are rapidly shortening the gap with the world's leading technology, to achieve a breakthrough in high-end hydraulic pump valve products.
1. Domestic and foreign hydraulic market development
Globally, the market size of the global hydraulic industry was 17.6 billion euros in 2003 and rose to 28.2 billion euros in 2016, with the market size expanding rapidly. China's hydraulic industry from scratch, after more than 60 years of development, has become the world's major hydraulic market.
The total output value of China's hydraulic system rose from 26.9 billion yuan in 2009 to 51 billion yuan in 2016, and the construction machinery industry showed obvious signs of recovery in 2017. Coupled with favorable policies such as China's manufacturing 2025, the 13th Five-Year Plan for intelligent manufacturing and the belt and road initiative, China's hydraulic parts market will gradually resume growth, and the market capacity is expected to rise to 75.9 billion yuan by 2021.
The market size of the hydraulic industry is highly related to the national economic aggregate and the level of industrialization. As the world's second largest economy and the largest manufacturing country, China's hydraulic industry accounted for 28% of the global market in 2016, only slightly lower than 34% of the United States, far higher than Japan and Germany and other developed countries.
Hydraulic products are widely used in various fields of the national economy, and their direct downstream needs include engineering machinery, aerospace and metallurgical machinery and other equipment manufacturing fields. Construction machinery is the largest demand area for hydraulic products.
In 2014, China's construction machinery market consumed 35.4 percent of the domestic hydraulic products, while Japan's proportion was as high as 43.3 percent in the same year, which shows the driving effect of construction machinery on the hydraulic industry. In addition to construction machinery, aerospace, metallurgical machinery and other fields also have a greater demand for hydraulic parts.
In 2017, the sales volume of China's construction machinery market was about 130000 units, up about 80% from 72000 units in 2016. At present, China's excavator market has accounted for about 20% of the world's total, of which about 26000 units were dug (20~30t) and 15000 units were dug. In 2017, China's excavator sales volume is expected to be 140000 units, with exports of about 7500 units, up 27.5 year on year. It is expected that in the next few years, my country's excavator market will maintain steady growth, with a total demand of about 130000 units and a total of about 1.5 million units.

2. High-end hydraulic parts imported brand-led
From the perspective of global experience, the international hydraulic industry has obvious market concentration characteristics. The top 6 to 7 major companies account for 80% to 85% of the international hydraulic market (source: "Hydraulic Pneumatics and Sealing", 2010 PTC Special Issue).
China's hydraulic industry started late and its technical foundation is weak, so the global leading enterprises represented by foreign capital or joint ventures occupy an important position in China's hydraulic parts market.
Bosch Rexroth, Kawasaki and Eaton as the representative of the global hydraulic leading enterprises, with the rapid technological change, rich product pedigree and the pursuit of excellence, firmly occupy the core market of China's hydraulic parts.
It is estimated that in 2009 Eaton, Bosch Rexroth and Parker in China's hydraulic parts market share of 11%, 17% and 7%; and by 2015 foreign enterprises in the domestic hydraulic pump, motor market share is still more than 70%.
High-end hydraulic parts R & D and manufacturing remain in the home country to maintain technological advantages, while a large number of exports to gain market share.
At present, Japan's Kawasaki, Germany's Rexroth and other global top hydraulic suppliers have successively established production bases in China. In addition to the localized production of non-core products, major manufacturers keep high-end hydraulic parts in the local R & D and manufacturing, and gain domestic market share by exporting to China.
In 2013, Eaton, Parker and Bosch Rexroth accounted for 15%, 21% and 27% of China's imported hydraulic parts respectively.
70% of China's high-end hydraulic products rely on imports, especially in high-end construction machinery, 90% of the hydraulic parts are controlled by people, and 70% to 80% of the profits are given to foreign hydraulic product manufacturers.
The overall market space of domestic hydraulic parts is about 50 billion yuan, and the imported high-end hydraulic parts exceed 10 billion yuan. In particular, the high-end hydraulic parts for excavators basically rely on the import of Bosch Rexroth, Kawasaki Heavy Industries and other manufacturers, which seriously restricts the competitiveness of China's excavator main engine factories. China's hydraulic industry is neither big nor strong, lagging behind the international advanced level of about 15 years.
The development trend of hydraulic components in the future is as follows: it will develop in the direction of high performance, high quality, high reliability and complete set of systems; it will develop in the direction of low energy consumption, low noise, vibration, no leakage and pollution control, and application of water-based media to meet the requirements of environmental protection; The industry will strive to develop high integration, high power density, intelligence, mechatronics and micro hydraulic components. Actively adopt new technologies, new materials and electronics, sensing.
Throughout the development of the industry, intelligence, energy saving, green, reliability is the main trend of future industry technology development.

3. Development trend of hydraulic component technology
(1) Intelligent
The development trend of machinery and equipment in the future is to improve safety and reduce labor intensity. Therefore, it is inevitable that the operating system is easy to operate and the man-machine interface is friendly, and even automation is realized.
Secondly, it is required to improve the precision and dynamic performance of the machine, and the motion and power control system is required to have high precision. In order to improve the reliability and long life of the product during the service period, reduce the maintenance time and reduce the cost of personnel, the system is required to have the ability of condition monitoring, fault diagnosis and intelligent maintenance.
The hydraulic component industry must meet the requirements of the host equipment by improving its own intelligence. The intelligent technology of the whole life cycle of hydraulic components is an important technology development demand to meet the needs of machinery and equipment in the future.
(2) Energy saving
Low carbon, energy saving, emission reduction and environmental friendliness are the strategic requirements for the sustainable development of the hydraulic industry. In the future, structural optimization and active control methods will be used to improve the efficiency of components and systems, and reduce the vibration, noise and transmission medium leakage of components and systems. Electronic control will replace the traditional mechanical and pilot control modes in variable components, and the functions will be determined by software programs to enhance the global optimization and matching capabilities of the system.
(3) Green environmental protection
Hydraulic components and parts in the manufacturing process of process pollution, product vibration and noise, material loss, media leakage and other issues, has been an important challenge facing China's hydraulic industry.
In the future, green manufacturing technology needs to be applied to the whole life cycle process of product design, process, manufacturing, use and recycling. Structural optimization techniques and active control principles are used to reduce the vibration and noise of components and systems.
The industry will gradually phase out surface treatment and processing manufacturing processes that are harmful to the environment, and adopt environmentally friendly manufacturing methods and equipment. Such as the use of net forming process, cutting optimization technology, dry cutting technology, etc., to improve the manufacturing process of resource and energy utilization, raw material conversion rate, reduce pollution waste and toxic substances emissions.
Through the promotion of environmentally friendly media applications, the development of new antifriction materials, improve material utilization. Through the development of pipeline connection technology, research and development of new sealing materials, optimize the sealing structure and finishing process, in order to improve the sealing performance of the product, reduce medium leakage and pollution.
Development of fluid medium recycling and reuse process, the development of dedicated component dismantling, recycling, remanufacturing process and production line, improve the performance evaluation of remanufactured components, in order to improve product recyclability and remanufacturing level.
(4) Improve reliability
China's hydraulic products have long-term problems of poor reliability and low service life, which directly affect the overall reputation of the industry. Many machine manufacturers dare not use domestic hydraulic brands for a long time, and end users are also opposed to use them, which leads to the dependence of hydraulic products on imports for a long time.
The reliability research status of China's hydraulic industry is as follows: it starts late, and most of it draws on the research results of the reliability of the mechanical industry, electronic reliability and other related fields, and fails to comprehensively consider the particularity of its own multi-field coupling, nonlinearity and complex vibration; the real-time reliability and fault prediction are insufficient; there is no unified reliability research standard.
Therefore, how to establish an effective and comprehensive reliability research will be an important technical and scientific problem for the future development of the industry.
4. Localization of high-end hydraulic parts
Since 2013, the Ministry of Industry and Information Technology, with the strong support of the Ministry of Finance and other relevant departments, has carried out the industrial foundation project for five consecutive years, adhered to problem-oriented, innovative development, and coordinated advancement, and achieved phased progress and results.
Among them, it supported a number of construction machinery parts such as Shanhe Intelligent, Hangzhou Forward Gearbox, Beijing Huade Hydraulic, Tianjin Construction Machinery Research Institute, etc., with a total investment of nearly 0.5 billion yuan and a subsidy of nearly 90 million yuan.
In September 2017, the Ministry of Industry and Information Technology issued the "Notice of the General Office of the National Development Bank of the General Office of Industry and Information Technology on Organizing the" One-stop "Application Plan for Key Products and Processes of the 2017 Industrial Strong Foundation Project" (Office of Industry and Information Technology Joint Regulations [2017] No. 88). The "one-stop" application plan for high-pressure oil pumps, multi-way valves and motors of construction machinery is led by the main engines of 20t and 30t hydraulic excavators and large truck cranes above 50t in China. In view of the urgent need for the main engines to independently support high-pressure oil pumps, multi-way valves and motors, the industry forces are gathered to jointly tackle key problems and develop them to form a "one-stop" supporting demonstration application.
It is an urgent need to promote the stable mass production of high-end hydraulic components and the large-scale matching on the host, change the long-term dependence on imports and realize the independent development of China's construction machinery in the development of high-end products and the expansion of exports.
After the evaluation organized by the Ministry of industry and information technology, some enterprises are recommend as "one-stop" demonstration enterprises of high-pressure oil pump, multi-way valve and motor of construction machinery (see Table 3 for details), and the demonstration enterprises can enjoy the national priority policy support.
China's hydraulic enterprises by increasing capital and technology investment in different segments, and gradually establish their own competitive advantage, in their respective market segments, with a more mature host supporting capacity, stable customer base and a certain technical reserves, and the gap with the international well-known hydraulic enterprises is gradually narrowing.
Under the guidance of relevant national policies and the promotion of market demand, it is expected that the industry concentration will gradually increase in the future. Hydraulic enterprises with strong technical strength and excellent management ability will get the opportunity of industry integration, and then become bigger and stronger. While promoting the overall technical level of China's hydraulic industry, it will alleviate the current situation of insufficient supply of domestic high-end products.
Although the overall strength of domestic hydraulic parts enterprises is still insufficient compared with foreign enterprises, some hydraulic parts enterprises continue to strengthen the construction of talent team and improve the level of technology after the development process of "introduction, absorption and innovation". In some hydraulic parts subdivision fields, the local competitive advantage has become increasingly prominent, and gradually have the ability to replace imported products, to further expand the domestic and foreign markets laid a good foundation!