According to the "2019-2023 Deep Market Research and Investment Strategy Suggestions Report on Low Voltage Distribution Cabinet Industry" released by the New Frontier Industry Research Center, the sales plan for the low voltage distribution cabinet industry in China was 10.7 billion yuan in 2010, and increased to 19.2 billion yuan by 2017, with an average annual compound growth rate of 8.7%; In 2018, the occupational sales plan for low-voltage distribution cabinets in China was 20.6 billion yuan, an increase of 7.3% year-on-year. Affected by the slowdown in macroeconomic and power industry investment growth, the sales planning growth rate of low-voltage distribution cabinets in China has slowed down, and it is estimated that the trend of slight increase will continue in 2019.
The development of the low-voltage distribution cabinet profession is closely related to the fixed asset investment market, and its market capacity is closely linked to the development of the power profession. Therefore, the demand for power grid construction in infrastructure, real estate, and industrial fields has a huge impact on the low-voltage distribution cabinet profession. With the continuous development of China's economy, the continuous improvement of people's living standards, and the acceleration of urbanization, the construction plan of China's power grid infrastructure is constantly increasing, and the demand for low-voltage distribution cabinets in shopping malls is also increasing. China's manufacturing industry planning continues to expand and its structure continues to upgrade. Large modern enterprises continue to emerge in the country, with advanced equipment and high automation levels. The requirements for the quality of low-voltage distribution cabinets are constantly increasing. The increasing number of high-rise buildings in Chinese cities has raised the requirements for the power supply capacity and volume of low-voltage distribution cabinets. Overall, the demand for low-voltage distribution cabinets in China's market is outstanding, but the quality requirements for downstream applications are constantly increasing.
At present, the production enterprises in China's low-voltage distribution cabinet industry mainly include two categories: international giants represented by Schneider, Siemens, ABB, etc., and local production enterprises represented by Zhejiang Zhengtai, Henan Senyuan, Anhui Zhongdian Xingfa, etc. In local enterprises, most of them lack brand awareness, outdated production equipment and processes, uneven quality and quantity of production, and price wars are the main competition in the market. There is a large gap between the entire industry and the international advanced level. With the construction of China's power grid entering the intelligent stage and the transformation and upgrading of the manufacturing industry, the demand for high-end low-voltage distribution cabinets in shopping malls continues to increase, and the professional structure of low-voltage distribution cabinets in China urgently needs to be adjusted and optimized.
According to professional analysts from Xinsijie, in the long run, with the construction and upgrading of China's smart grid and industrial development, the demand for new and replacement low-voltage distribution cabinets will continue to increase. In addition, the demand for low-voltage distribution cabinets in China's railway electrification and urban rail transit construction fields will drive the development of the low-voltage distribution cabinet profession in the future. However, with the rapid development of downstream shopping malls, the requirements for the functionality, volume, and intelligence of low-voltage distribution cabinets are constantly increasing, and the professional development of low-voltage distribution cabinets in China still faces challenges.