Diversified development trend of domestic hardware industry market
August 28 12:24:54, 2025
The hardware industry in China is experiencing rapid growth, with an annual increase of 20% and an output value reaching 400 billion yuan—surpassing the home appliance sector. As a vital part of the light industry, hardware exports account for approximately 25% of the country’s total exports, placing it among the top three sectors within the light industry. Chinese hardware products are now found all over the world, marking China as a global leader in this field.
From a historical perspective, the Chinese hardware industry used to be dominated by small and medium enterprises (SMEs), often operating from basic workshops with limited resources. However, recent years have brought significant changes. First, there has been a notable improvement in the quality of personnel. For example, leaders at China Hardware City, the largest hardware market in the country, include professionals with advanced degrees such as doctors and postdoctoral researchers. Second, technological and managerial capabilities have also improved. Companies like Great Wall Seiko now operate with high standards in both technology and management.
In terms of technology, the domestic production level remains uneven, with many foreign manufacturers using China as a manufacturing base. However, this has also led to increased competition and knowledge transfer. Many international companies have entered the mainland market, contributing to the industry's development.
Currently, the Chinese hardware industry is undergoing a crucial phase of upgrading—from producing low-end products to developing high-quality, advanced items. This transition is highly beneficial for long-term growth. As foreign products are introduced into the domestic market, advanced production techniques, management models, and even raw materials are being adopted, further strengthening the industry.
Traditionally, hardware includes tools that are faster than manual ones, such as hydraulic and power tools. In construction and decorative hardware, product replacement cycles are relatively short, indicating a dynamic and fast-moving market.
The demand for hardware components is also on the rise. For instance, Hebei, known for its small-scale processing plants, has developed a nationwide sales network of over 100,000 people. After more than a decade of steady progress, China has become the world’s largest producer of hardware products, with exports increasing steadily each year.
In terms of specific exports, tools were the most valuable category, reaching $5.34 billion. Construction hardware followed closely with $4.34 billion, while taps and locks contributed $2.23 billion and $680 million respectively. The main export destinations include the United States, Japan, Europe, and South Korea. The overall export growth rate of the hardware industry is around 8%, and last year, the total value surpassed $5 billion, ranking third in light industry exports.
With continuous improvements in manufacturing capabilities and production capacity, it is expected that China’s hardware industry will maintain a growth rate of over 10% annually for the next five years. In the first ten months of this year, the import and export volume of hardware and electrical products exceeded $500 billion, with a trade surplus of $7.06 billion—accounting for 64% of the national trade surplus during the same period.
Looking ahead, the Chinese hardware industry is likely to become more diversified, with higher technical standards and improved product quality. Combined with enhanced industry regulation and supportive policies, the sector will continue to expand, offering greater opportunities for growth and innovation.