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Analysis on the development trend of wire and cable industry in China

Analysis on the development trend of wire and cable industry in China

Wire and cable manufacturing industry refers to the manufacturing of wires and cables used in power transmission and distribution, power transmission, sound, text, image and other information dissemination, as well as lighting and other aspects.

Wires and cables are mainly used in three fields, i.e. power system, information transmission system, machine equipment and instrument system.

With the change of world economic structure, China's wire and cable industry is facing restructuring and shuffling. Especially in recent years, China's economic development is facing the bottleneck problem of energy and power shortage, and the country continues to increase investment in power, making the industry step into a leap forward development period.

The market structure is constantly adjusted, and the power cables occupy the mainstream

Influenced by the international trade environment and the transformation of downstream demand structure of the industry, China's wire and cable industry has entered a period of deepening development. The product structure has been further adjusted, and the excess and inferior production capacity has been further eliminated, which has a certain impact on the overall scale of the industry. The product has gradually changed from electric cable to special cable.

In 2018, China's wire and cable industry deepened its reform, with a certain decline in market size. The total annual sales revenue reached 1147.068 billion yuan, down 14.81% year-on-year.

In the market structure of China's wire and cable industry, due to the wide range of application of power cable, the revenue scale of this product accounts for a large proportion, and it is still an important industry segmentation field.

In 2018, China's power cables accounted for 35.73% of the total market; cables for electrical equipment accounted for 19.96% of the total market, and bare wires accounted for 14.83% of the total market

Analysis on the development trend of wire and cable industry in China

Since 2014, the global wire and cable manufacturing enterprises have begun to merge and restructure. However, the low concentration and highly decentralized pattern of China's industry is not conducive to the sustainable development of the industry. With the increasing downstream demand, the pace of merger and acquisition and restructuring of China's wire and cable manufacturing enterprises will be accelerated. In addition, the introduction of copper options will further reduce the price fluctuation of raw materials The impact on manufacturing enterprises will promote the industry concentration.

Industry competition will shift from price to brand and quality. With the continuous promotion of structural adjustment and the upgrading of market segment demand, brand and quality will become the key factors of competition among enterprises in the industry.

By continuously strengthening brand effect and improving product quality, wire and cable enterprises will gradually get rid of price competition and participate in the competition in the middle and high-end market.

As the downstream industry puts forward newer and higher requirements for wire and cable supporting industry, in order to grasp new development opportunities, in recent years, leading enterprises in the industry have continuously enhanced their comprehensive innovation ability and technical strength by increasing R & D investment and improving R & D system, which has promoted the overall technical level of the industry.