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1. Market Segmentation & Differentiation
The market is now fragmenting, with companies tailoring products to niche sectors. Examples include oil-free silent compressors for food processing and high-pressure, rugged models for mining. Through differentiation, some firms maintain 15–20% profit margins.
2. Service-Driven Profit Models
Many firms are shifting from product sales to “product + service” offerings, such as equipment leasing, maintenance, and energy-saving retrofits. Service revenue now accounts for 30–40% of total income for leading players, becoming a critical profit driver.
3. Pressing Challenges
Raw Material Volatility: Steel and copper prices surged 20–30% in the past year, squeezing margins.
Regulatory Pressures: Stricter energy efficiency and emission standards force costly R&D and upgrades.
