PEST analysis of China's valve industry

(1) Policy factors

The 14th Five Year Plan for the Development of the Valve Industry issued by the central government clearly requires that the valve industry will increase by 30% by 2021, and local policies have been introduced to improve industry penetration. In 2020, the valve industry became a market with policy dividends, and the government report of the State Council pointed out that the valve industry will be beneficial to improving the quality of life of the people.

(2) Economic factors

The valve industry continues to have hot demand, and capital is favorable for the valve field, leading to long-term positive development of the industry. The growth of downstream industry transaction scale provides new development momentum for the valve industry. In 2021, the per capita disposable income of residents was 2776 yuan, a year-on-year increase of 6.8%. The improvement of residents' consumption level provides an economic foundation for the market demand of the valve industry.

(3) Social factors

The traditional valve industry has low market barriers, lacks unified industry standards, and lacks professional supervision in the service process, which affects the development of the industry. The combination of Internet and valve reduces the intermediate links and provides users with cost-effective services. The post-90s and post-00s generations have gradually become the main consumers in the valve industry.

(4) Technical factors

Technology empowers artificial intelligence, big data, cloud computing, VR, 5G, and other technologies to gradually transition from first and second tier cities to third and fourth tier cities, achieving the popularization of technology experiences in the valve industry. The introduction of ERP, OA and other systems in the valve industry has optimized information management and construction processes, improving industry efficiency.