万博manbetx官网app下载_中国体彩网唯一官网-【唯一授权网站】@

News Center /
Interpretation of the development trend of low-voltage electrical industry, market concentration is expected to increase
Industry news   /   2018-05-24 17:22:00

Interpretation of the development trend of low-voltage electrical industry, market concentration is expected to increase

Industry News / 2018-05-24 10:21:00

2018 Distributed Wind Power Seminar August 30-31 Shanghai

2018 Energy Storage Industry Special Training Phase 1 August 2-3 Beijing

The 3rd Gas Turbine China Forum September 20-21

Polaris Smart Grid Online News: By the end of 2016, the market for low-voltage electrical appliances has reached 75 billion yuan. In 2017, the market for low-voltage electrical appliances is expected to be around 81 billion yuan, up 8% year-on-year. The demand for low-voltage electrical products is driven by investment in various industries, but it is most relevant to fixed-asset investment. Driven by the recovery of fixed asset investment and the rapid growth of downstream power generation, industry and real estate markets, it is expected that the output value of the low-voltage electrical appliance industry will maintain a growth rate of around 8% from 2018 to 2020.

Domestic low-voltage electrical appliance market scale and growth forecast

1.jpg

Source: Prospective Industry Research Institute

At present, the low-voltage electrical industry can be divided into three echelons of high, medium and low-end. The first echelon is the technology leader in the industry, mainly including multinational companies such as Schneider, ABB, Siemens, etc. These enterprises have mastered the most advanced technology in the low-voltage electrical industry and lead the development direction of the low-voltage electrical industry; the second echelon is the technical of the industry. Follow-ups, mainly include Zhengtai Electric, Changshu Switch, Liangxin Electric, Shanghai People's Electric Appliance, etc. These enterprises have strong research and development capabilities and are able to follow the development of the industry in a timely manner; the third echelon is the majority of the industry. Products with homogenization and competition with low-cost strategies have low R&D capabilities. Generally, products can be gradually produced only when the products enter maturity and production technology has become public information in the industry. The industry's largest middle and low end demand generates relatively low profits, while most of the profits are concentrated in the mid to high end market.

Compared with medium and high voltage electrical equipment, the low price of low-voltage electrical equipment is lower, and the bargaining power to the downstream is stronger. Therefore, when raw material prices rise, enterprises can better control the gross profit margin. Taking Zhengtai Electric as an example, the procurement cost of copper, silver, steel and plastic, which are the main raw materials required by the company, accounts for about 50% of the total cost. The product gross profit margin and copper price are highly correlated, showing a significant negative correlation. However, when the copper price rose by nearly 50% in 2016-2017, the company's gross profit margin fell by about 5%.

The low-voltage electrical industry is an industry that is fully competitive and highly market-oriented. From a global perspective, Schneider, ABB, Legrand, Siemens and Eaton have a combined market share of 25%, with Schneider's market share of 8%. From the domestic market, Zhengtai Electric has a market share of 18%, ranking first, Schneider's market share is about 17%; ABB is about 10%, and Delixi is about 8%. In addition, there are a large number of low-end market participants, which are competitive in price and gain market concentration, further reducing industry concentration.

The pattern of low-voltage electrical industry is scattered

1.jpg

Source: Prospective Industry Research Institute

In the future, with the construction of smart grids, the wide application of new energy sources, the improvement of environmental protection thresholds and the improvement of product performance and quality requirements of various users, the proportion of S1/S2 market will gradually increase, and low-end production capacity will gradually clear. Market concentration is expected to increase.


?