China cutting equipment market: RMB 34 billion industry in 2012

Press Release   •   Feb 28, 2013 15:37 GMT

The China cutting equipment market is suggested to have reached a value of RMB 33.9 billion in 2012, growing 14% from 2011. This is a slower growth rate than 2010 and 2011, when grow reached over 20%. This slowdown in growth is mirrored with the general economy in China, which saw industries as varied as shipbuilding, oil and gas, and construction.

As a new type of welding & cutting equipment, inverter welding & cutting equipment is replacing traditional one in most fields by virtue of high working frequency, fast response, excellent welding performance, energy saving and environmental friendliness, small size and light weight, and its market growth rate is higher than the average level of the whole welding & cutting equipment market.

In 2012, Chinese market size of inverter welding & cutting equipment reached RMB10.4 billion, up 18% from a year earlier, and contributing 31% to the welding & cutting equipment market value from 29% in 2010. In view of the uncertainty of China's economic growth over the next two years, the growth rate of the overall welding & cutting equipment market is expected to remain at about 5% in 2013-2014, and the growth rate of the inverter welding & cutting equipment market will be 12-13% because of ever high substitution rate.

Affected by the falling downstream demand, the customers preferred low-end inverter welding products in 2012. The low-end products feature low added value, resulting in decreased profitability of major Chinese inverter welding & cutting manufacturers.

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