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The China Tank and Pipeline Safety

Equipment Market
Product Briefing

Contents

• Product Overview
• Market Snapshot
• Market Dynamics
• Drivers and Inhibitors
• Purchasing the Study

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Market Overview: Tank and Pipeline Safety Equipment

Tank and Pipeline Safety


Equipment in China Interviewed Companies include:
This LPS provides an in-depth Pentair, Protego, Wuhan Jinye,
understanding of the market ENARDO, Safety Systems UK, Hubei
for three types of tank and Qida, Shanghai Zhongwei, Yongjia
pipeline safety equipment in Yuandong, REMBE, Hubei Chuguan,
Mainland China, which was Shanghai Minsheng, Dalian Fangzheng,
produced from our primary Shanghai Shihua, Groth, Xi'an
survey in 2H, 2012. Zhongyou, Yongjia Zhengde, Shand &
This study focuses on domestic sales of three safety Jurs
products: Flame Arresters, Breather Valves and Liquid
Seal Safety Valves. A quantitative and qualitative
The following figure shows a breakdown of the
assessment of the following is included:
interviews conducted for this study.

Interview Sampling
• Market Figures Target Groups Companies (No.)
• Competitive Analysis Suppliers 46
• Channel Analysis Distributors 18
• Analysis by industry Engineering / Design Companies 7
• Growth Rates & Forecasts OEMs 7
• Market Opportunities Total 78
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Market Snapshot: “An approximately RMB 1.8 Bn market ”

The market grew by approximately Definitions


13% in 2012, due largely to growth
Tank and Pipeline Safety Equipment refers to products used to prevent disasters
in the relevant downstream in tanks and pipelines used to store or transport oil, gas and chemicals. These
disasters are typically fires and explosions, caused by the ignition of highly
industries. flammable materials, and burst tanks, caused by an excessive buildup of pressure.

Flame Arresters (or Flame Arrestors) are designed to permit the free flow of a
gas or vapor but prevent the spread of a fire or explosion. They work by forcing the
Market Size Figures 2012 flame front through narrow passages in a conductive material that remove heat and
therefore extinguish the flame. Flame arresters designed to resist the high
pressures and shock waves involved in an explosion are known as detonation
flame arresters.

Breather Valves are valves designed to automatically open when the pressure
differential between the two sides of the valve exceeds a certain limit, thereby
reducing the risk of a pressure buildup or vacuum causing a ruptured tank.

Flame Arresting Breather Valves are breather valves with built-in flame arresters.
They are typically less effective than traditional flame arresters, but are gaining in
popularity due to being cheaper than installing both a flame arrester and breather
valve. In this report they are classed as a form of breather valve.

Liquid Seal Safety Valves use liquid trapped in a localized low point of the valve to
prevent flow between the inside and outside of a tank. A high pressure differential
will force the liquid out of the trap, allowing the pressure to equalize. These valves
are typically used in addition to breather valves, but designed to work at a higher
pressure differential. They are therefore not used in normal operation, but are
required in case a fault in the breather valve causes pressure or vacuum buildup.
They are used as an alternative to spring-operated safety valves.

Target Market: The target market of this study is defined as the market in China for
these three tank and pipeline safety products in the main end-user applications: oil,
natural gas and chemical material tanks, and oil and natural gas pipelines.
Source: GCiS 3
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Market Dynamics: Huge Gap between Low and High End

End users are legally required to install the target products in their tanks and
pipelines, and the downstream market is growing rapidly. Most purchase low-
end domestic products to meet minimum safety standards, and there is fierce
competition at this end of the market. Meanwhile, high-end imported products
operate in very different environment, with far higher prices.
Market Entry Trends
Technology requirements are low, and there are Growth is largely driven by the downstream
around 250 suppliers active in the market. Most market, which is rising due to higher demand for
high-end suppliers are foreign and sell imported oil and gas as well as government policies.
products, showing that domestic production is not Market players also report an increase in end
required. However, competition is fierce at the users’ safety awareness and
low end of the market. expect tighter enforcement
of relevant standards.
Competitive
Environment
Regional Focus Foreign and Domestic Firms
There is a huge gap between
East China is the largest market in terms of Chinese and imported products, with imports
revenue for all product segments, followed by the commanding prices ten times higher than the
North, while Southwest China is the smallest. domestic average. Suppliers report that there is no
The breakdown by product is similar for most comparability between low and high end products,
regions, although less liquid seal safety valves insulating foreign companies from the competition
are sold in the Northeast. at the low end of the market.
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Drivers & Inhibitors: Demand & Policy Combine to Drive Growth

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Purchasing the Study

This Study is priced at:


Complete Study: RMB 23,600 Executive Summary: RMB 10,400
Total Analysis: RMB 16,100 Market Figure: RMB 11,100
Segments Analysis (each): RMB 8,700 Competitive Analysis: RMB 11,100
Supplier Profiles: RMB 13,800 Plus Tax.

Major areas covered include:

о Market size and shares


о Five-year Projections
о Market Structure
о Pricing trends
о Distribution
о Assessment of key suppliers

Contact:
Beijing Shanghai
No., 2 Jiuxianqiao Rd. Room 10A3 Yu Jia Building
Chaoyang District, P.O. Box 8502 No. 1336 Huashan Rd.
Beijing, China 100015 Shanghai, China 200052
T: 86-10-5978-9958 86-21-6213-1036
LPS@GCiS.com.cn
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