The hottest medium voltage switch Market in China

Editor's note: Recently, frost Sullivan, a world-renowned growth consulting company, based on its observation and Research on the domestic switch Market in recent years, the domestic medium voltage switch market increased by% year-on-year in 2009

driven by the development of the entire power transmission and distribution industry, the growth rate of the domestic medium voltage switch market has maintained a high-speed growth of more than 20% until 2009. Until the end of 2008, a financial crisis affected the pace of economic development, and the domestic medium voltage switch market was also hard to escape. From the center, Emerson Electric (Tongling) Co., Ltd. was free to carry out inspection and testing from raw materials to terminal products. According to the 2009 semi annual report and the third quarter report of several major domestic medium voltage switchgear Enterprises:

the semi annual report of Huayi Electric showed that in 2009, the high and low voltage distribution products were 324million, an increase or decrease of -12.28% year-on-year in the first half of 2008. Among them, the sales in East China decreased by 16.30%, and the sales in Northwest China decreased by 19.26%. Until the third quarter report showed that the operating revenue of the parent company increased by 5% year-on-year. In the first half of the year, the sales volume of Dongyuan electric appliance's series switches and switchgear was 168million, a year-on-year decrease of 17.02%; The medium and high voltage switchgear of Great Wall electrician decreased by 4.44% year-on-year to 296million

by the second half of 2009, the market situation had significantly improved, and China's strategic emerging industry of aluminum and electronic new materials was transferred to the research and export base in Xinjiang. This is mainly due to the following reasons:

first of all, the country's power investment reached a record high in 2009. From the situation of China's power investment in recent years, the investment amount of 567.73 billion in 2005 reached 755.84 billion in 2009 at a compound growth rate of 7%, while the year-on-year growth rate in 2009 was 19.9%. (data source: national power Statistical Yearbook)

due to the promotion of power supply and electrical engineering investment, the performance of the medium voltage switch Market in the field of power generation, transmission and distribution gradually recovered to the level before 2008 in the second half of the year. Secondly, in addition to more than 300 billion yuan of electricity investment benefiting more than 600 power enterprises across the country, in the railway sector, the investment of 600 billion yuan in 2009 was the sum of the investment in the previous decade, and 12000 kilometers of expressways were added. This has played an important role in the growth recovery of 24kV circuit breakers and switchgear. In addition, the demand for medium voltage switchgear in the new energy industry can not be ignored. The recovery of growth rate at 40.5kV is largely due to the good market development of wind power and other new energy equipment

due to these incentives, the sales of domestic enterprises increased by an average of 15% month on month in the third quarter, and the investment effect will further affect the medium voltage switch Market in the fourth quarter of 2009. Foreign capital or joint ventures such as abb, Schneider and Siemens were also affected by the deterioration of the economic environment in 2009, and the growth rate decreased

price war continues to increase revenue without increasing profits

price war has become a dead cycle in the development of many industries in China, and the medium voltage switch market is no exception. Once the market investment increases, the production capacity will quickly climb to saturation. In the fierce competition, there are always some small and medium-sized enterprises with the idea of product quality. When selecting parts, they only pay attention to the price factor, resulting in the instability of product quality. Because they keep the price relatively low, the product price of the whole industry cannot go up to a certain extent, and shows a gradual downward trend. Since 2007, the net profit of the overall products in the medium voltage switch market has been only about 5%. Under the impact of profitability, enterprises have also suffered from the rise in raw material prices and the pressure of labor costs. For example, as the largest manufacturer of arc extinguishing chamber in China, Shaanxi Baoguang, the gross profit margin of medium voltage switch products was less than 20% in 2009. In the middle of 2009, the revenue decreased by 9.1% and the net profit decreased by 64.3%. Frost Sullivan predicts that the average price of domestic medium voltage switch market will still decline in 2009

improve product quality, standardize disordered market

frost Sullivan's energy and power system department has conducted in-depth research on the needs of users of the power system for many years, and found that in bidding, users of the power system designated products from foreign capital or joint ventures are still quite common, and these users who occupy a high share of demand still have the impression of low price and low quality for domestic small and medium-sized enterprises. Especially in some major projects, it is the purchasing principle of many power system users to choose foreign or joint venture products with high price but more guaranteed quality for safety and stability. However, as the medium voltage switch market is not treated by various policies as the UHV and high voltage switch market is a strategic industry, the positive effect of the policy has never benefited substantially from the medium voltage switch market. Therefore, the introduction of standardized policies for the industry as soon as possible can have a positive effect on the development of domestic and foreign enterprises in China

in addition to the relevant policies issued by the government to restrict the non-standard behavior in the industry, the enterprise itself should also consider the benefits that will help the automotive industry to continuously reduce the ecological footprint of vehicles and the long-term development of CO2 emissions, increase investment in research and development, select higher quality parts, prove the strength of the enterprise through the actual operation and business performance of users after using products, and get rid of the Red Sea competition as soon as possible