Wire and cable are the basic products used to transmit electrical energy, transfer information, realize electromagnetic energy conversion and constitute an automatic control circuit. There is no strict distinction between wire and cable. Broad wire and cable can also be called cable. Usually the structure is simple. The outer sheath, the product with smaller outer diameter is called electric wire, the structure is complicated, there is a strong sealed outer sheath, and the product with larger outer diameter is called cable. The main structure of the electric wire is 'conductor + insulation', the main structure of the cable For 'conductor + insulation + sheath'; conductor is generally made of copper, aluminum or its alloy, insulation and sheath are generally made of rubber, polyethylene, polyvinyl chloride and other materials.
Wire and cable are widely used, and there are many types and varieties. The existing wire and cable varieties have more than 2,000 kinds, and the specifications are hundreds of thousands. In the electrical and electronic industry, it is one of the largest categories of products and categories.
China wire and cable industry sales revenue, market size analysis
According to the data, in 2012, China's wire and cable industry sales revenue reached 1,145.496 billion yuan, and the industry scale reached 1,71,914 million yuan. By 2016, China's wire and cable industry sales revenue reached 1,260.37 billion yuan, and the industry scale reached 1,154.742 billion yuan. 2017 China The wire and cable industry sales revenue reached 1,341.344 billion yuan, and the industry scale reached 1,227.435 billion yuan, an increase of 6.30% over the same period of 2016.
2012-2017 China's wire and cable industry sales revenue, market size
Source of data: Prospective Industry Research Institute
Industry competition
From the perspective of the industry as a whole, the products of Chinese enterprises are mainly concentrated in the low-end market, and the market competition is increasingly fierce. At the same time, the concentration of wire and cable industry in China is extremely low, and SMEs account for more than 95%. The top ten enterprises in China only account for domestic The market share is 7% to 10%, which is much lower than 70% in the US.
At present, there are many enterprises in China's wire and cable industry. The market concentration of low-end wire and cable products is low, and competition is fierce. Some small and medium-sized enterprises are weak in technical strength, lack of independent innovation capability, oversupply of products and serious homogenization, leading to the overall industry. The quality of the products is uneven, and the brand reputation is difficult to establish;
The high-end products market represented by the introduction of safety, environmental protection, energy-saving and other high-end appliance wiring components and special-purpose special wires and cables for special equipment and machinery are characterized by high technical content, strong customer orientation and high qualification threshold. The number of enterprises with strong participation in competition is small, product demand is greater than supply, and some special products are still dependent on foreign imports. The competition has gradually shifted from price competition to brand competition.
In recent years, due to the rapid development of China's economy and the strong market demand, the world's top wire and cable companies include Italy's Prysmian, France's Nexans, and Japan's Sumitomo have established joint ventures in China, wholly-owned enterprises, investment fields. Choose high-tech, high value-added products.
With the entry of foreign capital into China's wire and cable industry, the shortage of domestic high-end products is alleviated to some extent. At the same time, under the guidance of national industrial policies, the domestic wire and cable industry has undergone industrial integration and technological innovation has also emerged. Enterprises with certain research and development capabilities and brand awareness actively explore overseas markets.
China's wire and cable exports
According to statistics from the Prospective Industry Research Institute, China exported 530,000 tons of wires and cables in the first quarter of 2018, a year-on-year increase of 3.9%. Looking at the export volume of China's wire and cable in 2013-2017, the export volume continued to increase during the five years, with an average annual compound. The growth rate is 5.44%.
In terms of export value, China's export wire and cable amounted to US$4.693 billion in January-March 2018, up 4.4% year-on-year. In 2013-2017, China's wire and cable export volume maintained a steady growth trend, with a compound annual growth rate of five years. 1.56%.
Q1 China wire and cable exports and growth in 2013-2018
Source of data: Prospective Industry Research Institute
Wire and cable industry sales revenue forecast analysis
In 2016, China's wire and cable industry sales revenue reached 1.26 trillion yuan, and reached 1.34 trillion yuan in 2017. It is estimated that by 2018, China's wire and cable industry sales revenue will reach 1.41 trillion yuan, the next five years (2018-2022) The average annual compound growth rate is about 5.09%. In 2022, the sales revenue of China's wire and cable industry will reach 1.72 trillion yuan.
China's wire and cable industry sales revenue and forecast in 2018-2022
Source of data: Prospective Industry Research Institute
Large international companies occupy the high-end market
At present, the first echelon of China's wire and cable industry products is almost monopolized by foreign giants and their joint ventures established in China. Nexans, Prysmian, Sumitomo, Furukawa and other international cable giants rely on their advanced production technology and equipment. Strong research and development strength, long-term occupation of high voltage and ultra high voltage cable market
Smart grid construction will provide broad market demand for the cable industry
The guiding ideology and overall goal of the National 13th Five-Year Power Grid Planning are: Guided by the national energy strategy, to meet the needs of economic and social sustainable development of electricity, vigorously promote the 'one special four big' strategy and electric energy substitution strategy, accelerate construction The UHV grid is the backbone grid, and the smart grids coordinated by the power grids at all levels. By 2020, four synchronous grids will be formed in the southwest, northwest, northeast, and northeast, and the three grids will be formed. Major changes in the way will bring huge market demand and innovation space to the cable industry.
(2) The development of the electromechanical industry will have a huge demand for assembly wires
The automobile industry will become China's new economic growth point, which will bring rapid development of automobile wire and enameled wire. Industrial development will increase the amount of motor, and it is expected that the winding wire will have a steady development at low speed. It is necessary to pay attention to motor insulation. The conversion of grades from grade B to grade F will speed up the replacement of the enameled wire. In addition, the improvement of rural living standards and urban construction will drive the further popularization and development of home appliances, and provide a market for the further development of magnet wires and other cable products.
(3) High-voltage, ultra-high-voltage power cable market demand is strong
Under the economic development concept of energy saving and environmental protection, high voltage and ultra high voltage transmission methods with the characteristics of 'high energy efficiency and low loss' have become an inevitable direction for the development of the power industry, and because of its 'large capacity, high reliability, maintenance free', etc. Many advantages, high-voltage, ultra-high-voltage power cables have been increasingly used in long-distance, long-span transmission lines. High-voltage, ultra-high-voltage power cables gradually replace medium- and low-voltage power cables is an inevitable trend in the development of the industry. The demand for large-scale power transmission and supply is continuously improving. The optimization of high-voltage transmission lines such as 110kV and 220kV is gradually pushed to the construction and transformation of the power grid. The construction of high-voltage, ultra-high-voltage and ultra-high-voltage transmission lines will be high-conductor wire products such as aluminum alloy wires and high. Voltage-grade power cables bring huge market demand. During the 13th Five-Year Plan period, China's distribution network construction is expected to have a total investment of 1.7 trillion yuan, with an average annual investment of 340 billion. It is planned that by 2020, the length of the high-voltage distribution network will reach 1.01 million kilometers, the medium-voltage distribution network line length reached 4.04 million kilometers. At the same time, the '13th Five-Year' also has a total investment of more than 700 billion yuan in rural areas.
(4) The national “One Belt, One Road” strategy brings a major opportunity for the cable industry to “go global”
The 'One Belt, One Road' national strategy has brought rare opportunities to the wire and cable industry. From the domestic perspective, the 'Belt and Road' covers 16 provinces. At present, various provinces and cities are making active responses, and some key projects are being launched, only in Xi'an. 60 “Silk Road Projects” have been launched. From the international perspective, the six major corridors are even more successful. Only high-speed rail construction will reach 81,000 kilometers. The export of electric power and railway transportation equipment will continue to accelerate, which will drive the regional economy along the line. With the rapid development, the demand for electricity construction in relevant countries will continue to grow. These will have far-reaching impacts and major development opportunities for the 'going out' of the wire and cable industry.