The hardware industry is experiencing steady growth, driven by a rising demand for more intelligent and user-friendly home solutions. As people increasingly value comfort and convenience in their daily lives, the need for high-quality, smart home hardware has never been greater. Despite the importance of hardware in modern living, the high-end market in China has long been dominated by foreign brands. However, in recent years, domestic hardware manufacturers have made significant progress, fueled by several key factors.
First, the quality of professionals in the industry has improved significantly. With the establishment of major hardware markets like China Hardware City, there's now a growing presence of highly educated individuals, including PhDs and postdoctoral researchers, who are bringing new ideas and innovation into the sector.
Second, production processes and management standards have greatly advanced. Many Chinese companies have adopted international best practices, introducing cutting-edge technology and management systems from abroad. This has led to the emergence of world-class manufacturers such as Great Wall Seiko, which now operate at a level comparable to global leaders.
Third, the industry is undergoing a transformation. China is moving from a mid-to-low-end production model to one focused on high-end, value-added products. This shift not only strengthens domestic capabilities but also attracts advanced technologies and management techniques from overseas during the transfer of manufacturing.
In addition, the demand for hardware components remains strong. Take Hebei Handan, for example—a small factory that has grown into a nationwide distribution powerhouse with over 100,000 sales representatives. After years of steady development, China has become the world’s largest producer of hardware products, with exports growing steadily each year.
China’s hardware exports have been increasing at an annual rate of around 8%. Last year alone, hardware exports surpassed $5 billion, ranking third among light industries. With continued improvements in manufacturing and expanded production capacity, the industry is expected to grow by more than 10% annually over the next five years. In the first ten months of this year, the trade volume of hardware and electromechanical products reached over $500 billion, with a trade surplus of $7.06 billion—accounting for 64% of the country’s total trade surplus during the same period.
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