Future development prospects of China's wire and cable industry in 2018

In the next few years, the power, railway, rail transit, energy, construction, shipbuilding, automotive and other industries will still maintain a large scale of investment, to the wire and cable industry to provide many rare opportunities. The main market segments of wire and cable industry demand are as follows:

Bare wire: The largest share of such products is all kinds of overhead wires, including all kinds of steel core aluminum stranded wire, aluminum (alloy) stranded wire, aluminum-clad steel stranded wire, fiber composite overhead ground wire, copper, aluminum bars and various contact network cables.

The construction of transmission lines in the Three Gorges of the Yangtze River and the hydropower station in the west will drive the growth of at least 800,000 tons of overhead wires, and the average annual growth of all types of overhead wires will be 10%. It is expected that during the "13th Five-Year Plan" period, 3,000 to 4,000 OPGW will need to be erected each year. Copper, aluminum profiles, bars and flat wires are expected to increase at an average rate of 5% to 10% per year. There is an annual demand for 3,000 tons of wires for various catenary lines, and there will be 400 to 500 tons of copper tram line maintenance for urban trams every year.

Winding wire: At present, the total amount of winding wire is nearly 800,000 tons, and the "13th Five-Year Plan" period will grow at an average rate of 4% to 5% per year. The development of home appliance industry in the 1990s has made the consumption of home appliance winding wire exceed the consumption of industrial motor and transformer winding wire, and become the largest user of winding wire. During the "13th Five-Year Plan" period, home appliance winding wire will continue to grow, and composite enamelled wire will expand its application range. Telephones, toys, electronic clocks, audio products, household appliances and closed relays of the popularity and expansion of the application will make the "double zero" enamelled wire variety and quantity greatly expanded, the development of the automotive industry (including motorcycles, etc.) will make heat resistant and special performance enamelled wire market demand to expand.

Power cable: During the "13th Five-Year Plan" period, the development of urbanization in China and the large-scale transformation and construction of urban power grid, while the development of large-scale industrial manufacturing enterprises and the construction industry, will greatly promote the market demand for power cables. With the end of the rural power grid transformation project, China will enter the peak of the construction of backbone power grid and urban power grid. In addition, the construction of west-east power transmission, hydropower stations, power stations and the development of the telecommunications industry will bring opportunities to wire and cable. According to preliminary estimates, the total investment in the power grid during China's "13th Five-Year Plan" period will reach 1.2 trillion yuan, and 60,000 kilometers of new 330KV and above transmission lines will be added during the period. According to the development plan of quadrupling the national economy by 2020, the country's new installed power capacity is about 35 million to 40 million kilowatts, and the installed capacity and power generation are increasing by about 10% annually. On this basis, it is expected that during the "13th Five-Year Plan" period, the overall annual average increase rate of power cables will reach 13-15%.

Communication cables and communication optical cables: The development of the domestic information industry has provided a broad market for communication cables and communication optical cables. Data communication in the "tenth Five-Year" period, has become a new bright spot in China's telecommunications business, the average annual growth rate of 55%, the growing high-speed transmission and broadband services, so that the demand for data cable is growing, and far higher than the growth rate of optical cable, is expected to reach 20%-30% average annual growth rate, in the "thirteenth Five-Year" period of data cable demand for 3.75 million boxes/year. According to the conclusion of the 3G optical cable market research of the Communication cable and optical cable Expert Committee, if China starts 3G construction, according to different 3G license issuance schemes, the demand for optical cables is about 2,000 to 30,000 core kilometers, and the demand for RF cables is more obvious, about 80,000 to 110,000 kilometers.

Electrical equipment with wire and cable: electrical equipment with wire and cable products in the variety, series, categories of the largest class of products, its output value accounts for about 28% to 30% of the entire industry, but its variety accounts for about 60% of the industry products. Electrical equipment with wire and cable is directly used with electrical equipment products, involving a wide range.

China's wire and cable industry has experienced long-term rapid development, with the continuous growth of the market size base, the future growth rate of the industry will decline, but it will still maintain rapid growth. According to the forecast, by 2020, China's wire and cable is expected to exceed 110 million kilometers, and the output value exceeds 1.6 trillion yuan. The "2017-2022 China wire and cable Industry Market Analysis and Forecast and Future development Trend Research Report" issued by Zhiyan Consulting consists of 12 chapters. First introduced the wire and cable industry market development environment, wire and cable overall operation situation, then analyzed the current situation of the wire and cable industry market operation, and then introduced the wire and cable market competition pattern. Subsequently, the report makes a key business analysis of wire and cable, and finally analyzes the development trend and investment forecast of the wire and cable industry. If you want to have a systematic understanding of the wire and cable industry or want to invest in the wire and cable industry, this report is an indispensable tool for you.

This research report mainly uses the national statistical data, the General Administration of Customs, questionnaire survey data, the Ministry of Commerce collected data and other databases. Among them, macroeconomic data are mainly from the National Bureau of Statistics, some industry statistics are mainly from the National Bureau of Statistics and market research data, enterprise data are mainly from the National Bureau of Statistics of scale enterprise statistics database and stock exchanges, and price data are mainly from various market monitoring databases.

Although the wire and cable industry is only a supporting industry, it occupies a quarter of the output value of China's electrical industry. It has a large variety of products and a wide range of applications, involving power, construction, communication, manufacturing and other industries, and is closely related to various sectors of the national economy. Wire and cable is also known as the "artery" and "nerve" of the national economy, is the transmission of electric energy, transmission of information and the manufacture of various motors, instruments, meters, electromagnetic energy conversion indispensable basic equipment, is the future electrification, information society in the necessary basic products.

According to the analysis report on the status quo and development prospects of China's wire and cable industry released by China Industry Research Network (2018-2025), the wire and cable industry is the second largest industry in China after the automobile industry, and the product variety satisfaction rate and domestic market share are more than 90%. In the world, the total output value of China's wire and cable has exceeded the United States, becoming the world's largest wire and cable producer. With the rapid development of China's wire and cable industry, the number of new enterprises continues to rise, and the overall technical level of the industry has been greatly improved.

"China Wire and Cable Industry Current Situation Research and Development Prospects Analysis Report (2018-2025)" On the basis of many years of wire and cable industry research conclusions, combined with the development status of China's wire and cable industry market, through a senior research team to collate and analyze all kinds of wire and cable market information, and rely on national authoritative data resources and long-term market monitoring database, The wire and cable industry has been comprehensively and carefully investigated.

Wire and cable industry development trend: industry research and development capabilities and technical level will continue to improve

After years of development, China's wire and cable enterprises have made great achievements in technology, but in the high-end wire and cable research and development is still very weak, compared with the international large wire and cable enterprises, there is still a big gap in the technical level and research and development investment. As the downstream industry puts forward updated and higher requirements for the wire and cable supporting industry, in order to grasp the new development opportunities, in recent years, the leading enterprises in the industry have continuously enhanced their comprehensive innovation ability and technical strength by increasing research and development investment, improving the research and development system, and promoted the improvement of the overall technical level of the industry.

Wire and cable industry development trend: brand and marketing network become the key factor of competition

At present, the number of enterprises in China's wire and cable industry is large, and the market competition is still dominated by price competition. Some leading enterprises in the industry have gradually got rid of the low-end price competition, and participated in the high-end market competition by continuously strengthening the brand effect and expanding marketing channels. With the continuous advancement of industry structure adjustment and the upgrading of market segment demand, brand and marketing network will become the key factor of competition between enterprises in the industry. Industry advantage enterprises will also rely on the competitive advantages in brand, capital, scale, marketing, research and development and other aspects, to obtain a larger market share and a broader space for development.

Wire and cable industry development trend: transformation and upgrading let quality become the protagonist of competition

Transformation and upgrading are key measures to enhance quality competitiveness. From the development process of countries around the world, in the economic growth slowdown or even recession, the development of various industries must be through mergers, acquisitions, upgrades, transformation, etc., to promote the continuous improvement of industry concentration, China's cable industry is no exception. In recent years, experts have also emphasized the transformation and upgrading of the wire and cable industry. The transformation and upgrading they emphasize is the integration and upgrading under the guidance of market demand.

China's wire and cable industry future market outlook

(1) High voltage, ultra-high voltage power cable market demand is strong

Under the economic development concept of energy conservation and environmental protection, the high-voltage and ultra-high-voltage transmission mode characterized by "high energy efficiency and low loss" has become the inevitable direction of the development of the power industry, and because of its "large capacity, high reliability, maintenance-free" and other advantages, high-voltage and ultra-high-voltage power cables have been more and more used in long-distance and large-span transmission lines. The gradual replacement of medium and low voltage power cables by high-voltage and ultra-high-voltage power cables is an inevitable trend in the development of the industry. At present, the demand for large-scale power transmission and supply of the national economy continues to increase, and the optimization of 110kV, 220kV and other high-voltage transmission lines is gradually pushed to the construction and transformation of the power grid. The construction of high-voltage, ultra-high voltage and UHV transmission lines will bring huge market demand for wire products such as aluminum alloy wires and high-voltage power cables. During the 13th Five-Year Plan period, the total investment in China's distribution network construction is expected to reach 1.7 trillion yuan, with an average annual investment of 340 billion yuan. It is planned that by 2020, the length of high-voltage distribution network lines will reach 1.01 million kilometers, and the length of medium-voltage distribution network lines will reach 4.04 million kilometers. At the same time, the "13th Five-Year Plan" has also formulated a total investment of more than 700 billion yuan of rural power grid upgrading plan, which shows that the "13th Five-Year Plan" period of China's power cable market demand.

(2) The demand for railway and urban rail transit is growing rapidly

The demand for wire and cable in the field of railway and urban rail transit is growing rapidly. By the end of 2015, a total of 26 cities and 116 lines with a total length of 3,618 kilometers of operational lines had been opened in the mainland. The number of new lines in operation in 2015 reached 445 km, an increase of 14%. In 2015, the total investment and completion of urban rail transit in China reached 368.3 billion yuan, an increase of 27%. The total length of the line under construction is 4,448 kilometers (seven types are under construction at the same time), and the total investment for research and approval can reach 2,633.7 billion yuan. By the end of 2015, a total of 44 cities had approved urban rail construction plans, with a planned scale of 4,705 km (Source: National Bureau of Statistics). The development of China's urban rail reflects the characteristics of rapid growth in scale, gradually rich system network, and basic formation of the pattern According to the "13th Five-Year Plan" modern comprehensive transportation System Development Plan, "13th Five-Year Plan" period, China's railway and urban rail transit will continue to maintain rapid growth and sound development momentum. The operating mileage of railways will increase from 121,000 in 2015 to 150,000 km in 2020, the operating mileage of high-speed railways will increase from 19,000 km in 2015 to 30,000 km in 2020, and the operating mileage of urban rail transit will increase from 3,300 km in 2015 to 6,000 km in 2020. The increase of urban rail investment will effectively stimulate the further development of the wire and cable industry, and is expected to bring huge transformation and upgrading opportunities to China's wire and cable enterprises.