Competition Form of Mechanical Seal Industry

1. Unfavorable factors affecting the development of the industry



1. Product homogeneity competition is fierce, technology and innovation capabilities are not strong, and there are many small enterprises


In the field of high-end products that require strict technology and innovation capabilities, only a few companies can produce, while domestic mechanical seal industry companies compete fiercely in the middle and low-end product market; under the influence of the idea of ​​'emphasis on the main engine and light on supporting equipment' during the planned economy In the long run, the mechanical seal industry has problems such as less overall investment, poor foundation, weak foundation, and weak strength. Many products still rely on imports. Foreign giants in the mechanical seal industry far exceed domestic companies in terms of research and development capabilities and R&D investment. Most domestic companies have weak technology development capabilities and lack of independent research and development capabilities, which limits the further development of enterprises.



2. Restrict the production of high-end mechanical seal products, and rely on imports for some basic materials

At present, domestic basic material manufacturers still need to improve their research and development investment and production of high-quality products. High-end mechanical seals have higher requirements for basic sealing materials. High-performance graphite and engineering ceramics are required in the production process of mid-to-high-end mechanical seal products. High-end mechanical seals have high requirements for basic sealing materials, which limits the R&D and production of domestic high-end mechanical seal products to a certain extent.



3. Competition in the domestic market has increased, and international giants have built new factories in China

International giants (such as John Crane and Eagle Burgmann) have created greater competitive pressure on the development of domestic manufacturers by building new factories in China. Although in the domestic mechanical seal market, domestic products have gradually replaced imported products, especially some mechanical seal products have basically achieved complete import substitution. However, relying on their advantages in technology, capital and brand, the international giants have positioned domestic localized products in the middle and low-end market, and further reduced their production costs by building new factories in China. It has great advantages in the competition in the domestic market, so it has created great competitive pressure on domestic enterprises that are already concentrated in the low-end market.

Therefore, in the development process of domestic mechanical seal manufacturers, it is not only necessary to deal with the market share erosion pressure brought by the localization production strategy of international giants in the low-end market. It also needs to continue to invest funds, human resources and other resources in the research and development of high-end products and import substitution to compete with international giants.

Two, the competition form of domestic mechanical seal industry

The low-end product market is completely competitive, while the high-end product market has fewer domestic participants, showing the characteristics of polarization in the overall competition form of the mechanical seal industry.

After years of technology accumulation and development, domestic mechanical seal industry manufacturers have become increasingly mature in various fields of mechanical seal technology and products, and their performance has reached or approached the level of foreign products. In most application fields, they have been able to replace imported products. Almost complete. However, in some product markets of mechanical seals, manufacturers mainly compete on price, the market competition is fierce, and the profit margin is low. The added value of the product is low, the technical content is not high, and the number of manufacturers is large.

The high-end mechanical seal market was monopolized by international giants in the early years, and the country is still in a relatively weak position overall. However, at present, a small number of domestic manufacturers are making breakthroughs in various fields of high-end mechanical seal products through continuous R&D investment and key project research, and It has launched market competition with international giants. In the high-end product market, it is mainly based on R&D, technology, service and brand competition, and the profit margin is relatively larger. In China, only a few enterprises with strong R&D, design, production and testing capabilities and service capabilities, such as Zhongmi Holdings, Dandong Cloning and Yitong Sealing, have set foot in the high-end mechanical seal market, especially in the high-end dry gas sealing market. Only Zhongmi Holdings Heyitong Seal has strong market competitiveness.

With the continuous deepening of environmental protection, safe production, industrial adjustment and upgrading, and supply-side reform, the future market will put forward more stringent requirements for the product performance, technological content, application scenarios and services of mechanical seal manufacturers. The core manufacturers in the high-end product market will compete comprehensively in terms of product development and design, production process and technology, product testing and quality control, service level, and brand strength. The price competition in the low-end product market will become increasingly fierce. , the industry concentration is expected to further increase.