After years of development, China has become the largest country in the production of electrical and magnetic materials. According to the data, the annual output of China's small motors will reach 10 billion units at the end of the "Twelfth Five-Year Plan" period, accounting for 70% of the world's small motor output. The development trend of micro-motor products and technologies will be energy-saving and intelligent, and will move from “production power” to “technology power” in the next 20 years. In addition, electrical products such as motors, wires and cables, and power supplies have also grown with the development of China's power industry.

During the "Twelfth Five-Year Plan" period, China's industrial electrical industry will maintain steady growth due to the impact of China's power industry, new energy industry and energy structure optimization. Benefiting from the promotion of China's environment, China will gradually become the world's largest and most advanced electrical application market. Although China's electrical equipment industry still has weak foundations, lack of independent intellectual property rights, electronic equipment manufacturers do not pay attention to the development of low-voltage electrical appliances and high-voltage electrical appliances, the use of raw materials is not reasonable, and the implementation of international standards for electronic products is lagging behind. However, with the improvement of the technical level of China's local electrical enterprises, the development prospects of China's industrial electrical industry are promising.

Industrial electrical industry development characteristics

1. The industry is developing rapidly

In recent years, driven by the rapid development of China's power industry and related supporting industries, China's industrial electrical industry has also shown a good momentum of development. In 2016, the industrial electrical industry achieved sales revenue of 7.34 trillion yuan; realized total profit of 493.68 billion yuan.

2. The overall technical level of the industry is gradually improving

After more than 50 years of development, China's industrial electrical industry has formed a relatively complete system. The variety, output, technical performance and quality of the products have basically met the development needs of the national economy. Its products are undergoing a transition to a new generation of products characterized by intelligence, miniaturization, modularity and communication. At present, the competition of industrial electrical companies will be largely reflected in the competition between technology and R&D. The current industry has implemented the national unified CCC compulsory certification. In the future, with the gradual refinement of standards, industrial electrical products will become more standardized.

3. The industry is in a pyramidal competitive landscape

The market structure of industrial electrics is typically pyramid-shaped, and the market demand for low-end products with lower technical thresholds is huge, attracting many market participants. In 2015, domestic industrial electric production enterprises above the scale (annual sales income of more than 20 million yuan) have exceeded 20,000, the market competition is fierce, and the overall concentration of the industry is not high. After foreign competitors intervened in the Chinese market, they used the method of cooperation with domestic production enterprises to seek complementary advantages and continuously penetrate domestic and foreign markets, which also intensified market competition. Under the highly competitive pattern, leading enterprises with technological and scale advantages are in a favorable position, and it is expected to enhance industry concentration through mergers and acquisitions.

4. Weak periodic characteristics of the industry

In the long run, industrial electrical is a basic industrial product, which is a basic component of the power industry, energy, industry, transportation, urban and rural infrastructure, civil and commercial. It has a wide range of products and a wide variety of industries. It is widely used in nationals. The various industries of the economy are closely related to people's lives. Therefore, the demand for industrial electrical products is often expressed as hard demand and has weak cyclical industry characteristics.