China bearing export country and international demand analysis

I. Introduction

Bearings, as the key basic parts of all kinds of mechanical equipment, occupy a pivotal position in the global industrial system. As an important bearing producer and exporter in the world, China's bearing products are widely flowing to all over the world. In-depth exploration of the export destination of China's bearings and the international market demand for Chinese bearings is of vital significance for China's bearing industry to grasp international market opportunities, enhance international competitiveness, and formulate scientific development strategies.

Second, China's main bearing export countries

According to customs data, from January to June 2024, China's bearing exports show a diversified pattern. In terms of export value, the top 30 export destinations cover countries and regions in Asia, the Americas, Europe and other regions. Among them, India topped the list with an export value of 360,661,306 USD; The United States followed with $296,926,919; Germany came in third with $274,410,215. South Korea, Mexico, Brazil, Italy, Japan, Vietnam, France and other countries also occupy an important share in China's bearing exports.

In Asia, India, South Korea, Japan, Vietnam, Malaysia, Thailand, Indonesia, Singapore, Iran and other countries have sustained and large-scale demand for Chinese bearings. India, as a country with a large population and in the process of rapid industrialization, has developed rapidly in the fields of manufacturing, automotive industry, and power equipment, and has a strong demand for bearings. South Korea is strong in the electronics, automotive, machinery and other industries, and has diverse needs for bearings of various precision and specifications. Although Japan itself is the leading technology in the field of high-end bearings, it still relies on imports for low-end and some specific uses of bearings, and Chinese bearings occupy a certain share of the Japanese market with cost-effective advantages. Vietnam, Malaysia and other Southeast Asian countries in recent years, the rise of the manufacturing industry, to undertake a large number of industrial transfer, factory construction and equipment renewal of the demand for bearings is rising.

The Americas region, the United States and Mexico are important export markets for Chinese bearings. As the world's largest economy, the United States has a complete industrial system, developed industries such as automobile, aerospace and machinery manufacturing, and a huge consumption of bearings. Although there are well-known bearing enterprises in the United States, Chinese bearings have strong competitiveness in the low-end market and some specific industrial fields with their rich product types and reasonable prices. With its geographical advantages close to the United States and the development of its own automobile manufacturing industry, Mexico's imports of Chinese bearings are also considerable. In addition, South American countries such as Brazil, with the gradual development of their infrastructure construction and industry, the demand for bearings is also growing steadily.

In Europe, Germany, Italy, France, Russia, Poland and other countries are the main importers of Chinese bearings. As a manufacturing power and the initiator of Industry 4.0, Germany has extremely high requirements for bearing accuracy and performance in machinery manufacturing, automotive industry and other fields. While some high-end bearing products in China are gradually meeting the demand of the German market, middle and low-end products are also widely used in some price-sensitive industrial application scenarios in Germany by virtue of their cost advantages. Italy is more developed in machinery, textile, auto parts manufacturing and other industries, and has different levels of demand for various types of bearings. France's demand for bearings in aerospace, rail transit, automobiles and other fields has also prompted it to import related products from China. Russia's development in energy, machinery and other fields, as well as the gradual improvement of its industrial system, the degree of dependence on Chinese bearings is also deepening. Poland and other Central and Eastern European countries, with the development of their economies and the expansion of manufacturing, the demand for Chinese bearings is also increasing.

Third, the international market demand analysis of Chinese bearings

1. The scale of demand continued to grow

From a global perspective, with the continuous advancement of the industrialization process, especially the rapid rise of emerging economies, the demand for all kinds of machinery and equipment has increased significantly, which has led to a strong demand for bearings. Asia has become the world's largest bearing consumer market, and China, as a global manufacturing power, plays a key role in bearing production and exports. According to the statistics of CICC, the global bearing industry market size reached 130.2 billion US dollars in 2022, and is expected to reach 279.8 billion US dollars by 2032, with a compound annual growth rate of about 7.9%. China bearing with its cost-effective advantages, in the wave of international market demand growth, the scale of exports is also expanding. For example, in emerging economies such as India and Vietnam, with the booming development of its manufacturing industry, the demand for bearings has shown a blowout growth, and Chinese bearings have entered these markets in large numbers with the advantages of fast delivery and reasonable prices.

(2) Stable and huge demand in the middle and low-end markets

In the international market, the demand for low-end bearings occupies a larger share. Chinese bearing enterprises actively participate in international competition in the field of micro and small bearings, and gradually occupy the middle and low-end markets and some high-end markets. Taking Shandong Halin Group Co., Ltd. as an example, 60% of its bearings are exported to overseas markets, especially its fist products self-lubricating joint bearings, with unique self-lubricating function (inner wall coated with special materials to achieve self-lubrication, no maintenance) and relatively low costs, attracting tens of millions of dollars of international orders every year, mainly sold to the European market. Many bearing enterprises in China can produce bearings of various sizes as small as 0.6 mm inside diameter and as large as 12.37 meters outside diameter, and the product specifications are rich, which can meet the diversified needs of the middle and low-end market. In some of the bearing accuracy, performance requirements are relatively not high, but the price sensitive industry, such as general machinery manufacturing, small household appliances production, general agricultural machinery and other fields, China's low-end bearings with its price advantage has been widely recognized in the market, the demand is stable and the order volume continues to grow.

(3) The demand for specific high-end and special purpose bearings is gradually emerging

Although in the overall high-end bearing market, enterprises in developed countries such as Europe, the United States and Japan occupy a dominant position, with the continuous progress of China's bearing industry technology, in some specific high-end and special purpose bearings, the international market demand for Chinese bearings has begun to appear. In some emerging industries and specific application scenarios, such as drive motor bearings for new energy vehicles, bearings for some parts of high-speed rail, etc., Chinese enterprises have gradually been able to produce products that meet the requirements through technological innovation and research and development investment, and have been recognized by international customers. For example, in the field of new energy vehicles, some bearing enterprises in China have developed special bearings for the characteristics of high speed and large torque of electric vehicle motors, whose performance is close to the international advanced level, and have begun to enter the international new energy vehicle parts supply chain system and obtained a certain market share. In addition, bearings with special functions such as self-lubricating joint bearings, with the development of global industrial equipment to intelligent and maintenance-free direction, the international market demand for them is also increasing, Chinese enterprises in this regard with technological breakthroughs and cost advantages, ushered in a good development opportunity.

(4) Different industries have different characteristics of China's bearing demand

Automotive industry: The automotive industry is one of the main consumption areas of bearings. For passenger cars, high-precision, low-noise, long-life bearings are needed to ensure the comfort and reliability of the vehicle. In the field of commercial vehicles, due to its more complex operating conditions, the bearing capacity and fatigue resistance are required to be higher. Chinese bearing enterprises continue to improve product quality and performance for the different needs of the automotive industry. In the low-end auto parts market, Chinese bearings have occupied a certain share by virtue of their cost advantages; In the field of new energy vehicle bearings, some enterprises have also begun to emerge through research and development investment to meet the needs of international automobile manufacturers for specific bearings.

Machinery manufacturing industry: Machinery manufacturing covers many segments, and the demand for bearings is wide. General machinery has high requirements for universality and interchangeability of bearings, and is more sensitive to price, and China's rich low-end bearing products can well meet this demand. In some high-end equipment manufacturing fields, such as CNC machine tools, industrial robots, although the bearing accuracy, reliability and other requirements are extremely high, but with the progress of China's bearing technology, some products have also begun to enter the supply chain of these high-end machinery manufacturing, the international market for China's high-end machinery manufacturing bearing recognition is gradually improving.

Power industry: Whether it is thermal power, hydropower or wind power, a large number of different types of bearings are needed. The turbine and generator in the thermal power unit need high-precision and high-reliability bearings to ensure long-term stable operation. Due to the particularity of its operating environment, the hydropower unit requires higher corrosion resistance and impact resistance of the bearing. The wind power industry has special requirements for the fatigue resistance of bearings and the ability to adapt to complex climatic conditions. Chinese bearing enterprises in the power industry with bearings, continue to improve product quality and technical level, in order to meet the needs of domestic power construction at the same time, but also gradually open the international market, especially in the field of wind power bearings, with the maturity of China's wind power technology and the expansion of the industrial scale, some enterprises began to export their products to overseas wind power projects.

Factors affecting international demand

1. Global economic situation

The prosperity and recession of the global economy have a direct impact on the demand for Chinese bearings in the international market. When the global economy is on the rise, manufacturing, infrastructure construction and other activities in various countries are active, and investment in machinery and equipment increases, thus driving the demand for bearings. For example, in the past few years, emerging economies such as India, Vietnam and other economies to maintain a high growth rate, the rapid expansion of its domestic manufacturing industry, factory construction and equipment replacement frequently, the demand for bearings increased significantly, which also makes the number and amount of China's bearing exports to these countries continue to rise. On the contrary, when the global economy is in recession or instability, such as during the 2008 global financial crisis, the investment willingness of enterprises in various countries has declined, industrial production activities have slowed down, and the demand for bearings has also decreased, and China's bearing exports are facing greater pressure.

(2) International trade policy

Changes in international trade policies have a significant impact on China's bearing exports. The rise of trade protectionism will lead to some countries to set up tariff barriers, technical barriers and other trade barriers, restricting the entry of Chinese bearings. For example, some countries may raise import tariffs on bearings, increasing the price of Chinese bearing products in the local market and reducing their competitiveness; Or develop strict technical standards and certification requirements, making it difficult for some bearing products that do not meet the standards in China to enter its market. On the other hand, the signing of free trade agreements is conducive to China's bearing exports. For example, the free trade agreements signed between China and ASEAN, South Korea and other countries and regions have reduced tariffs, simplified trade procedures, and promoted the market expansion of Chinese bearings in these regions.

3. Technological innovation and industrial upgrading

With the acceleration of global technological innovation and the advancement of industrial upgrading, various industries have put forward higher requirements for the performance and quality of bearings. The international market is increasingly inclined to high-precision, high-performance, long-life bearing products. If Chinese bearing enterprises can keep up with the trend of technological development, increase investment in research and development, and improve the technical content of products, they can better meet the international market demand and obtain more orders. For example, in emerging industries such as new energy vehicles and high-end equipment manufacturing, the technical requirements for bearings are different from those of traditional industries, and Chinese enterprises have opened up new international market space by developing bearing products suitable for these emerging industries. At the same time, industrial upgrading has also prompted some traditional industries to update and transform equipment, and the demand for high-performance bearings has increased, providing opportunities for Chinese bearing enterprises.

V. Conclusion

China's bearing exports to many countries in the world, Asia, India, South Korea, Japan, America, the United States, Mexico, Europe, Germany, Italy and other countries are the main export destinations. The demand for Chinese bearings in the international market shows a trend of continuous growth in scale, stable and huge demand in the low-end market, increasing demand for specific high-end and special purpose bearings, and different demand characteristics in different industries. Global economic situation, international trade policy, technological innovation and industrial upgrading and other factors have profoundly affected the international market demand for Chinese bearings. China's bearing industry should fully grasp the international market opportunities, actively respond to challenges, continue to improve the technical level and product quality, optimize product structure, strengthen brand building, in order to better meet the international market demand, enhance the position and competitiveness in the international bearing market, to achieve sustainable development of the industry.