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Prospects for China's Wire and Cable Industry

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Prospects for China's Wire and Cable Industry

2016/10/19 16:23
[Abstract]:
With the development of urbanization in China, the construction of China's smart grid has gradually started. As a modern emerging industry, the smart grid is characterized by unmanned intelligence and

With the development of urbanization in China, the construction of China's smart grid has gradually started. As a modern emerging industry, the smart grid is characterized by unmanned intelligence and efficient operation, and will be the future development trend of the power grid in the future. The industry will Usher in new opportunities. As the most important supporting industry in power grid construction, the wire and cable industry has ushered in a broader market prospect and unprecedented new opportunities. How should China's cable companies share this opportunity?

 

As one of the important supporting industries for national economic construction, wire and cable industry is the second largest industry in the machinery industry after the automotive industry. According to statistics, China's wire and cable industry has 4,653 large-scale and above-scale enterprises, 85 enterprises with annual main business income of over 1 billion yuan, and 36 companies with assets of over 1 billion yuan. According to the “2014-2018 Market Demand Forecasting and Investment Planning Analysis Report of China Wire and Cable Industry” released by the Industry Research Institute, it shows that the wire and cable industry has grown at an average annual rate of more than 15% in the past 15 years. In the next few years, due to China’s industrialization, In the later period, the development speed of China's wire and cable industry will be higher than the national economic development rate, and it is expected to reach over 10%; in particular, the average annual growth of power wires and cables can reach 15%.

 

With the improvement of the degree of industrialization in the country, the improvement of infrastructure, and the improvement of urbanization, the cable industry will surely be mature. The industry will be markedly polarized and the industry concentration will increase. Among them, the top 10 in the United States will have a market share of 67. % of the market, Japan's top six market share of 65%, France's top five market share of 90%. Although the industry concentration is low, resulting in the cable industry market in a scattered market state, but the wire and cable industry has maintained a high The rapid growth of production efficiency, rapid increase in production efficiency, accelerated product upgrading, product structure gradually become more reasonable, the industry’s capital structure is increasingly diversified, and the marketization process has been accelerated; in particular, the advantages of wire and cable manufacturing in coastal and economically developed areas are obvious, and regional differences are further expand.

 

According to the prospective industry research institute's electric energy team, it is expected that China's power grid will usher in a golden period in the next five years, and the wire and cable industry will have a "great opportunity." As national policies and the State Grid Corporation’s investment in smart grids are becoming increasingly significant, in order to tie in with the implementation of national West-to-East power transmission and power grid reconstruction projects and the gradual progress of urbanization construction, it will be closely related to transmission and distribution in the next five years. The relevant wire and cable market capacity will maintain a considerable growth rate of 8%-9% per year, and the wire cable industry will usher in new opportunities.