Why China is an Important Geography for the Global Chain Drive Market?
The global chain drive market is likely to witness a drastic change in the near future. The market is expected to undergo progression in various end-user segments and witness a high growth in different geographical regions. The growth of the global chain drive market can be cited highest in the three major countries i.e., China, Japan, and the US. These three countries constituted more than 50% of the global sales in 2016.
The recent report published by Beige Market Intelligence titled “Global Chain Drives Market – Strategic Assessment and Forecast 2017–2022” states that the US is the world’s largest market for chain drives due to a high degree of mechanization and better availability of range and awareness. It further considers China as an important geography for the globe chain drive market.
What are the factors that make China an important destination for the chain drive market? What is the scenario of the chain drive market in the country? The report provides key answers to these crucial questions related to the chain drive market in China.
Chain Drive Market in China
China despite being the second largest market for chain drives is the largest manufacturer and exporter to other geographies. Almost all major chain drive vendor manufacturers are based in APAC with China and India being as the major attractive destinations due to the availability of the cheap labor market and proximity to the leading markets for chain drive.
The region hosts some of the largest chain drive manufacturers in the world including Heng Jiu, Donghua Chain Group and several other medium-scale companies which act as key exporters of drive components to various sectors such as automotive, construction, bulk material handling, and industrial engineering and maintenance.
Another important factor that helps China to be an ideal manufacturing and engineering location for chain drive manufacturing is its export competitiveness, driven by the policy characterized by currency devaluation and export-oriented tax breaks.
Some of the factors that characterize the Chain drive market in China are as following:
- China is a major base for OEMs for electronic and electromechanical component manufacturers. The country also hosts the world’s largest insulating material industry. Conveyor chain drives and sprockets are widely used in the manufacture of insulation structures and accessories
- The automotive industry in China is the largest in the world in terms of units produced and sales registered. Chain drives constitute a vital constituent of automobiles, thereby driving their sales in the region
- Expansion in public and private infrastructure, including electric grids, roads and railway connectivity, theme parks, and industrial expansion, particularly associated to steel, industrial pulp, and paper production is expected to drive the chain drive market in China
The chain drive market in China is expected to grow at a CAGR of more than 7% during the forecast period.
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