Although the overall policies and market trends for energy-saving transformation and high-end equipment upgrading remain unchanged, due to weaker than expected macroeconomic recovery, coal, steel, cement, and other industries are facing pressure from cyclical adjustments in industry prosperity, production capacity adjustments, and development transformation. Capital investment in new equipment procurement and technological transformation will decrease, and the demand for frequency converters will also be delayed.
In the past year of 2014, looking back at the many problems in China's manufacturing industry, these challenges have brought more new opportunities to China's industrial automation industry. In order to improve industry competitiveness, local enterprises have begun to upgrade and transform under the promotion of the 12th Five Year Plan policy, adopting advanced industrial automation technology to a greater extent, which has brought significant opportunities to automation enterprises.
Frequency converters were introduced in the 1960s and were widely used in major industrialized countries in the 1980s. A frequency converter in China was successfully developed by Mr. Wu Jialin, the father of Chinese frequency converters, in June 1985, marking the beginning of China's frequency converter industry and entering a peak on the development path of frequency converters in China.
In the short 20 years of development in China, frequency converters have gone through the stages of cognition, assembly, and production manufacturing. At present, there are nearly 200 imported and domestic frequency converter manufacturers in China, and there are also thousands of companies engaged in agency sales and secondary development around frequency converter production. Some component suppliers, material suppliers, reactors, filters, cables, relays, as well as pressure sensors, temperature sensors, energy meters and other industries are paying attention to the development of frequency converters.
The inverter industry is a strong cyclical industry, closely related to the business cycle. In 2013, the world and domestic economy were still in a period of adjustment, and issues such as inadequate economic structural reform and weak demand growth did not fundamentally improve. The impact of the financial crisis showed a long-term trend. At the same time, new trends have emerged in the global industrial restructuring, with developed countries re valuing manufacturing and the third industrial revolution represented by the Internet and new energy being on the rise. The focus of China's macroeconomic regulation policy, which focuses on stabilizing growth rate, adjusting structure, and improving efficiency, has shifted to deepening reform and structural adjustment. Overall, the economic operation has remained stable, showing a trend of declining while stabilizing. The economic environment is more complex, and the economy has both growth momentum and downward pressure. Under the promotion of energy-saving and emission reduction policies in traditional industries, high energy consuming enterprises are increasingly paying attention to comprehensive energy-saving services, and energy-saving and environmental protection are still the fastest growing markets.
Although the overall policies and market trends for energy-saving transformation and high-end equipment upgrading remain unchanged, due to weaker than expected macroeconomic recovery, coal, steel, cement, and other industries are facing pressure from cyclical adjustments in industry prosperity, production capacity adjustments, and development transformation. Capital investment in new equipment procurement and technological transformation will decrease, and the demand for frequency converters will also be delayed.
Data shows that the high-voltage frequency converter market in China is rapidly rising, with the market size of high-voltage frequency converters increasing from 1.09 billion yuan in 2005 to 3.4 billion yuan in 2008, with a compound growth rate of over 40%. According to predictions, the market growth rate in the coming years will still maintain a relatively high level of over 40%.
With the deepening of environmental protection issues in the industrial system, industrial production requirements are also reflected at a new level. Compared to the market for medium and low voltage inverters, the market for high-voltage inverters is more concentrated, which effectively changes the expansion strategy of high-voltage inverters in China. This has led to the endless emergence of new processes and technologies, and accelerated the commercialization process, enabling high-voltage inverter enterprises to have economies of scale in terms of capital and technology, Becoming a follow-up force to increase competitiveness.
In recent years, domestic brands have been continuously developing, product quality has gradually improved, and failure rates have gradually decreased. Compared to imported brands, they have shown high cost-effectiveness and will gradually replace them. In addition, with the vast appreciation space of the global renewable energy frequency converter market, the potential market for frequency converters in China will remain at 120 billion to 200 billion yuan, making the industry highly attractive and the market more active, The application scope will be more extensive.
At the same time, the future development of China's high-voltage inverter industry should strengthen the role of the China Inverter Industry Association, people-oriented, vigorously promote the adjustment of industrial structure and product structure, rely on technological progress, strive to transform economic growth mode, and strengthen the implementation of industry standardization. Only by following scientific development strategies can we achieve faster and better development.
According to the "2013-2017 China High Voltage Inverter Market Analysis Deep Research Report" released by Shangpu Consulting, with the emergence of the role of high voltage inverters in power energy conservation and consumption reduction and the gradual increase in market demand, under the concept of promoting energy conservation and environmental protection at home and abroad, there are great opportunities for industry development, especially under the stimulus of investment exceeding 400 million in China's energy conservation and environmental protection market in the future, The industry is generally optimistic about the market prospects of high-voltage frequency converters.