Introduction
The Chinese Bearing Industry is one of the worlds oldest and most comprehensive bearing markets. It is home to a wide range of industries ranging from automotive and aerospace to medical supplies, industrial equipments and other associated industries. The industry has advanced significantly in the recent years with the influx of technology and the development of new product lines and processes. This article will provide an overview of the Chinese bearing industry, its growth, challenges and opportunities.
Industry Overview
China is the world’s largest producer of bearings and its production capacity is expected to continue to grow in the coming years. In 2016, the Chinese bearing industry saw an impressive 11% growth in production, up from 10.4% growth the previous year. The Chinese bearing industry has experienced strong momentum in recent years from the automotive, agricultural and construction sectors and has a large presence in the global market. The industry consists of over a hundred large and medium-sized companies and around 500 smaller manufacturers who mainly produce low-end products.
In terms of exports, China is the world’s largest exporter of bearings (68%), accounting for over two-thirds of the world’s bearing exports. The country has an extensive global network of sales and supply channels, with major contracts and partnerships in place with leading international firms such as SKF, NTN, Timken, INA and others.
Growth
Despite the challenges posed by the recession, the Chinese bearing industry has seen rapid growth in recent years. The industry recorded a 10.9% growth rate from 2012 to 2017 compared to 3.2% in the same period for the US bearing industry. These figures suggest that the Chinese bearing industry is one of the fastest growing in the world. Furthermore, the industry has an impressive 9.7% market share in the global bearing industry in 2017.
Furthermore, China is now the largest producer of high-end automotive and aerospace bearings in the world, as well as being the largest producer of traditional motorcycle bearings. The country also has the necessary infrastructure to produce other specialty bearings such as deep groove, angular contact, self-aligning and rotary bearings, offering a wide range of choice and cost savings to customers.
Challenges & Opportunities
Despite the impressive growth and market position of the Chinese bearing industry, the industry still faces several challenges that may limit its growth in the coming years. These include:
• A fragmented industry with different levels of technology and quality, making it difficult for customers to find the right supplier for their needs.
• The lack of an internationally accepted certification system for quality assurance, which can limit the trust of foreign buyers compared to other industries.
• Limited access to advanced machinery, equipment and materials, which restricts the industry’s ability to develop high-end products in-house.
In addition, the industry also has several opportunities for growth in the near future. These include:
• Increasing demand from emerging markets such as India, Brazil and Southeast Asia.
• Increasing focus on automation to reduce costs and improve efficiency.
• Development of specialized technical personnel and better quality management systems.
• Expansion of product offerings and services to meet changing customer needs.
Summary
The Chinese bearing industry is one of the world’s largest and fastest growing industries with a 9.7% market share in the global bearing industry. It has seen rapid growth in recent years thanks to its strong presence in the automotive, agricultural and construction sectors. Despite the challenges faced by the industry, it has several opportunities for growth in the future. These include the expansion of product offerings to meet changing customer needs and the development of specialized technical personnel and quality management systems.
