At present, the troubles caused by the trade friction between China and the United States and the slowdown in the growth rate of the automotive industry will have a negative impact on the development of high value-added precision casting products in the short term; But in the next five years, China will be the world's largest aircraft demand market, and the Chinese market will still be the driving force for the development of precision casting in the future. With the continuous development of China's economy and the continuous expansion of high-tech industries, the demand for precision casting industry products in the market is constantly increasing.
Against the backdrop of rapid development in China's aviation, automotive, medical, machinery and other markets, the precision casting market in China is growing at a rate higher than the global average, and the future development prospects of the precision casting industry are even broader. With the accelerated transformation and upgrading of China's manufacturing industry, the requirements for components in the domestic market will continue to increase. More and more sand castings and forged parts will gradually be replaced by precision castings. The demand for precision castings in the market will continue to grow, and the industry has broad prospects for future development.
The precision requirements for products are extremely high, so precision casting companies have high barriers to the precision casting process. At the same time, due to the small cost proportion of these components in the entire aircraft manufacturing, aircraft manufacturers are less sensitive to part prices and prefer to ensure reliable product sources and excellent quality. The precision casting industry is also unwilling to compromise and replace products with low prices that are questionable in quality. The high-quality reputation and excellent product quality of precision casting companies are one of the company's biggest moats. The economies of scale and technological accumulation ensure that the entry barriers to this industry are high and the moat is deep.
In the coming years, the market size of China's precision casting industry will continue to show a stable growth trend.
At the current stage of development, China's precision casting industry has reached a considerable scale. The research and development innovation ability and production technology level of the precision casting industry are constantly improving, and some products have reached or approached the international advanced level. A group of precision casting enterprises have gradually entered the international business track in technology and management. In addition to serving domestic aviation, automotive, shipbuilding, energy and other fields, their products also provide supporting products for international high-end users, and their overall competitive strength is constantly improving.
Analysis of Concentration in the Precision Casting Industry
Most of China's characteristic casting industry clusters are coordinated with regional economy and adapted to the characteristic economic circle. Among them, the casting industry in the Bohai Rim region and the Yangtze River Delta region is relatively concentrated. The five major provinces and cities around the Bohai Sea, including Beijing, Tianjin, Liaoning, Hebei, and Shandong, have a high concentration of the casting industry, and the basic conditions and development trends of the casting industry are good. The Yangtze River Delta region, including Shanghai, Jiangsu, Zhejiang, and Anhui, has a large number of large-scale enterprises and a high concentration of the casting industry. The basic conditions and development trends of the casting industry are good.
At present, the concentration of the domestic precision casting industry is relatively low. There are many precision casting enterprises in China, but the vast majority of them are relatively small in scale. With the development of the industry, market competition in the future will become increasingly fierce. Precision casting production enterprises must continuously improve their technical level, introduce advanced equipment, and expand their production scale in order to maintain their market position in the industry.