In-depth Analysis of China's Wire And Cable Industry in 2023: High-speed Development And New Market Opportunities

In-depth Analysis of China's Wire And Cable Industry in 2023: High-speed Development And New Market Opportunities

1. Wire and cable industry overview

Wire and cable refers to the material that consists of one or more insulated cores and has the function of conducting current on it. Wire and cable are widely used in electric power, communication, transmission and other fields for transmitting electric energy, signals and so on. Wire and cable specifications and a wide range of types, according to different uses and needs, their shape, size, material and so on are different.

2. The wire and cable industry development-related policies

In recent years, the wire and cable industry by all levels of government attaches great importance to and the focus of national industrial policy support, has introduced a number of policies to encourage the development of the wire and cable industry and innovation. 2021 China Electrical Appliance Industry Association Wire and Cable Branch issued the "China's wire and cable industry, "14th Five-Year Plan" development guidance" on the "14th Five-Year Plan". "14th Five-Year" development of the domestic and international environment was objectively analyzed, and on the "14th Five-Year" guiding ideology and development goals, development strategies, etc., and on the "14th Five-Year" period to be Focus on the promotion of innovation tasks to provide recommendations.

3. The wire and cable industry chain

At present, China's wire and cable industry chain has been more perfect, the industry has entered a mature period. Wire and cable industry upstream is mainly to provide raw materials for wire and cable products and manufacture of cross-linked insulation, sheath material of the rubber industry; midstream that is, for all types of wire and cable manufacturing enterprises; downstream for the demand side of wire and cable products, mainly including the power industry, rail transportation, construction industry and communications industry.

Wire and cable industry upstream mainly for copper, aluminum, fiber optics, insulation plastics, rubber and other raw materials production industry, raw materials accounted for the proportion of the total cost of wire and cable in more than 80%, of which copper and aluminum is accounted for more than 70% of the cost of wire and cable, so the fluctuations in the price of raw materials on the industry's gross profit margin is more obvious. Data show that in 2022 China's copper production was 22.865 million tons, an increase of 5.7%.

4. Wire and cable industry status analysis

Wire and cable production: since the 1990s, China's wire and cable industry has developed at a rapid pace, becoming the world's second largest wire and cable producer after the United States, in 2011, the industry's size for the first time exceeded the United States, becoming the first large market; since 2011, China's wire and cable production as a whole has shown a trend of growth, due to the impact of epidemics, China's wire and cable production in 2020, the growth rate of growth slowed down. In 2022, the output was about 59.27 million kilometers.

Market scale: with the development of electric power, communication, transportation and other industries, the demand for wire and cable continues to grow, the market scale expanded. 2022 market size of 1.17 trillion yuan, 2023 will reach 1.20 trillion yuan.

Segmented market structure: With the development of China's economy and the continuous progress of technology, the technical level of the wire and cable industry has gradually improved. In all types of wire and cable, power cables have the widest range of applications, the largest market share, up to 39%; electrical equipment with a 22% market share of cables, wires (bare wires), winding wire, communication cables, accessories accounted for 15%, 13%, 8% and 3% in turn.

5. Wire and cable industry competition pattern

Although the scale of China's wire and cable industry ranks among the world's top, but compared to Europe, the United States, Japan and other developed countries, the product homogenization is serious, mostly low-end conventional wire and cable products are mainly used, and the selection of technology tends to be the same, the industry's fierce competition among enterprises, the concentration of the industry is relatively low. 2021 China's domestic wire and cable industry revenue of the top ten enterprises, the combined market share of only 12.8%, the industry more than 75% of the enterprises For small and medium-sized enterprises. The top ten wire and cable companies in the United States accounted for its domestic market share of more than 70%, Japan's top seven wire and cable companies accounted for its domestic market share of more than 65%.

6. The future development trend of wire and cable industry

In recent years, the emergence of new materials, manufacturing processes and technologies for the development of the wire and cable industry to provide strong technical support. For example, the use of high-purity materials, nanocomposites and other new materials can significantly improve the electrical properties and mechanical properties of wire and cable. At the same time, advanced manufacturing processes and technologies, such as precision extrusion molding, laser welding, etc., also makes the precision and reliability of wire and cable products has been significantly improved. In addition, with the development of smart homes, electric vehicles and other emerging industries, the demand for wire and cable is also growing. These industries have high performance requirements for wire and cable, so high-end development has become an inevitable trend in the wire and cable industry. According to statistics, the market size of China's high-end wire and cable market was about 130 billion yuan in 2021, and is expected to reach about 190 billion yuan by 2025.