GCiS China Strategic Research has published a study of the China market for cryogenic equipment, which sees widespread application in the liquefied natural gas (LNG) industry. Covering cryogenic pumps, valves, tanks and vaporizers, this study provides an in-depth look at the trends, participants and forecasts for the industry from 2010 to 2015.
The study finds healthy growth of 10% in the market and diverse applications such as petrochemical, chemicals, metallurgy, electronics, power and shipbuilding. Currently the focus of supplier development is on LNG applications. China has been investing heavily in LNG terminals, with plans to open several in Eastern and Southern locations.
Customers typically recognize that there is a clear difference in quality between the average product of foreign and domestic firms, with the former being of considerably higher quality and price. However, most of the key buyers in this market are large State owned Companies involved in the energy sector such as Sinopec, CNOOC and CNPC. Their purchase of target products is mostly determined by government directive, which may favor domestic solutions.
In order to take full advantage of opportunities in the cryogenic equipment market, foreign suppliers may have to deepen their ties to local and state-owned industry partners. Intellectual property control may prove a key challenge for suppliers of high performance products such as cryogenic pumps.
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Source: GCiS China Strategic Research, January 12, 2011;