“Achieving carbon peak before 2030 and carbon neutrality before 2060” is a major strategic decision made by the CPC Central Committee after careful consideration. It is driving the electric equipment market to the direction of low-carbon, intelligent and digital development, and also pushing forward the reform and development of low-voltage electrical appliances.

China’s gross domestic product (GDP) reached 28,499.7 billion yuan in the first quarter of 2023, up 4.5 percent year on year and 2.2 percent from the fourth quarter of last year at constant prices, according to data released by the National Bureau of Statistics on Thursday. With the prosperity and healthy development of the society and the continuous improvement of people’s living standards, the demand for electricity in the whole society is rising year by year, which will further release the low-voltage electrical appliance market.

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Industry scanning

Grasp the basic plate of low-voltage electrical appliance industry development

With the steady development of macro-economy, investment in fixed assets will continue to grow, and the gross industrial product and electricity consumption will also increase steadily, bringing continuous business opportunities for the development of low-voltage electrical appliance industry. According to the data, the market size of China’s low-voltage electrical appliance industry will exceed 120 billion yuan in 2025.

From the market share of the TOP5 brands in the domestic low-pressure market, the domestic leader represented by Chint is occupying the market of foreign-funded enterprises, gradually increasing the market share, and reducing the small and medium-sized foreign-funded enterprises. However, the strong foreign brands represented by Schneider are still able to stick to their own fields and shares.

In terms of market segments, construction, industrial projects, power grid, industrial OEM, infrastructure, individual users and other segments account for about 38%, 19%, 15%, 14%, 11% and 3% respectively. Overall, the trend of steady growth is most evident in the power grid, construction industry and industrial projects.

Construction: “urbanization rate” steadily increased, is expected to continue the construction sector high boom

According to the outline of the 14th Five-Year Plan, China will raise the urbanization rate of permanent residents to 65% by 2025. The steady increase of urbanization rate will increase the demand for housing, office buildings and commercial premises, and effectively support the sustainable development of low-voltage electrical appliance industry.

Industrial project: intelligent, digital imminent

Foreign investment in industrial projects is strong, such as Schneider, ABB, Siemens, etc., in the field of petroleum and petrochemical, iron and steel metallurgy and other traditional industrial projects performance is relatively good, there is still a large space for domestic substitution. However, thanks to the expansion of domestic support for advanced manufacturing, electrification will help bypass the weak links in China’s industrial base and push the market for power and electrical equipment companies higher, achieving intelligent and digital layout. Moreover, the industrial electric power proportion of the whole society can reach more than 60%, has been the main power consumption field, but also the important driving force of the low-voltage electrical equipment industry growth.

Industrial OEM: Traditional OEM continued to decline, battery, printing a few areas of growth against the trend

Traditional Oems continued to decline, while a few sectors such as batteries and printing bucked the trend. The main downstream market segments of OEM industry, such as machine tools, semiconductors, batteries, textiles, packaging, etc., have a large scale of market demand, and the elevator, printing, pharmaceutical and other downstream markets also have varying degrees of year-on-year growth.

Power grid: Smart power grid transformation and upgrading, intelligent low-voltage electrical products usher in development potential

As the country increases investment in new infrastructure, represented by 5G, artificial intelligence and the Internet of Things, building smart power distribution networks and implementing digital transformation have become the general trend. Low-voltage appliances are the key components that determine the automation and intelligence of distribution network. The intelligent distribution field will produce considerable demand for low-voltage appliances in the future.

Infrastructure: Strong growth momentum of infrastructure infrastructure adds impetus to the growth of low-voltage electrical appliance industry

From the perspective of the downstream demand for low-voltage electrical appliances, the new infrastruction-related industries represented by rail transit, data centers, information and communication, and charging facilities continue to show a positive trend, which reflects the strong growth momentum of infrastructure. In 2021, the overall infrastructure market scale reached 10.81 billion yuan, mainly from the contribution of new infrastructure sectors.