Reported by Doubao As a core equipment for industrial fluid control, forged steel valves have become a dual focus of policies and the market due to their adaptability to extreme working conditions. Data shows that the global market size is expected to exceed 3.2 billion US dollars by 2026, and China’s market size is expected to reach 18.5 billion yuan, with a compound annual growth rate of 8%; however, problems such as backward high-end technologies and overcapacity in the mid-to-low-end segment are prominent, and the trend of market differentiation and concentration of leading enterprises is intensifying.

Policies and energy transition are the core growth engines. Domestic policies focus on the localization of high-end valves. The “dual carbon” goal promotes the transformation of traditional industries and the expansion of emerging fields such as LNG, hydrogen energy, and nuclear power. In 2026, the new demand for forged steel valves in China’s nuclear power sector will reach 280 million yuan, and the growth rate of LNG-specific cryogenic forged steel valves will exceed 15%; globally, deep-sea oil and gas exploration and power infrastructure upgrading have opened up market space, with the Asia-Pacific region accounting for 42.3% of the global market share.

Market polarization is intensifying, and high-end competition is fierce. The mid-to-low-end market is plagued by fierce homogeneous competition, with less than 15% of over 2,800 enterprises having independent R&D capabilities; the high-end market is dominated by international brands such as Emerson and Flowserve. Nevertheless, the localization process is accelerating. Domestic leading enterprises such as CNNC Su valve and Neway Valve have broken through key technologies such as nuclear-grade forged steel valves. The industry’s CR5 approached 40% in 2025, and the export volume reached 782 million US dollars in 2024; intelligent transformation has become a key factor, and the proportion of intelligent forged steel valves is expected to reach 31% by 2026.

Multiple risks restrict development. Raw material costs account for 65-70% of the total product cost, and price fluctuations lead to a gross profit margin fluctuation of ±3%; domestic enterprises have shortcomings in technologies for extreme working conditions, and some core components rely on imports. In addition, the complex international trade environment and stricter environmental policies will increase the compliance costs of small and medium-sized enterprises by an additional 5% in 2026.

Industry experts point out that 2026 will be a year of industry reshuffling. Technological barriers and comprehensive industrial chain capabilities will become core competitiveness, and small and medium-sized enterprises will face an increased risk of elimination. In the future, technological innovation will focus on high-parameter products for extreme working conditions and the transformation to “intelligent terminals + full-life cycle services”. Domestic enterprises need to increase R&D investment to achieve the leap from scale expansion to value creation.