The future market trend of low-voltage cables

Overcapacity seriously hinders the development of
China's wire and cable industry.
Profits are getting thinner and thinner, making the call for the wire and cable industry to take the high-end route more urgent
.
But in reality, we ignore that taking the high-end route is not something that can be achieved by shouting, not in the short term
.
The ideal is beautiful, the reality is cruel
.
There is still a long way to go
before the cable industry technology and market "abandon low and go high" from ideal to reality.
Moreover, there is a view in the industry that "the profit margin in the low-end market is too low and not worth pouring too much effort" seems to be biased
.
Obviously, low-voltage cables are the most common cable products on the market, and they are also so-called low-end products.
Is it worth the effort? Below, we take low-voltage cables as an example, through the counterfeiting of low-voltage cables and the analysis of the real estate market, to see the future trend and development trend
of the low-voltage cable market.

It is reported that the conductor that transmits power or information from one place to another is called a "low-voltage cable"
made of one or more conductors that are insulated from each other with outer insulation and protective layers.
From a practical point of view, in the Chinese construction wire market in recent years, fake and shoddy products are the most common, and some hardware stores even openly sell fake and shoddy construction wire products at low prices, and the sales are very good
.
It can be seen that from the perspective of the market, low-voltage cables are still a sought-after product
in the market.
From the perspective of the macro environment, what is the scene of the construction market? Is the real estate market depressed, and the low-voltage cable market will shrink accordingly? According to the monitoring data of 40 key real estate enterprises in the country by the China Index Research Institute, as of December 31, 2013, only the top ten enterprises in Vanke, Greenland, Evergrande, Poly, Zhonghai, China Resources, R&F, China Merchants, Greentown and Gemdale had a new planned construction area of 125,883,800 square meters this year, an increase of 34.
03% over last year.
The total transaction amount reached 416.
436 billion yuan, an increase of 78.
44%
over last year.
According to the national plan, during the "Twelfth Five-Year Plan" period, 36 million sets of affordable housing will be built nationwide, and the new construction area in the country will be maintained at 1.
6-2 billion square meters every year in the future, and 20 billion square meters
will be added by 2020.
It is estimated that from 2010 to 2020, the total sales area of commercial housing in the country will be about
6.
753 billion square meters.
The demand for low-voltage cables in the construction market is still very large
.

In 2014, the global low-voltage cable and component market size was about 99.
2 billion US dollars (about 631.
75 billion yuan).

It is expected that by 2020, this figure will increase to 147.
3 billion US dollars (about 938.
08 billion yuan), with a compound annual growth rate of 7%
during the period.
According to China's current residents' living standards, the number of household appliances and general residential electricity consumption, and considering China's upcoming new urbanization construction projects, according to the need for 15-20 meters of wires per square meter of residential buildings, by 2015, the total demand for wires for China's private residential and non-residential commercial building construction projects will be about 65 million kilometers, and about 100 million kilometers
by 2020 。 The acceleration of industrialization and urbanization, the rapid development of renewable energy, the expansion and reconstruction of transmission and distribution network infrastructure, and the strong government support for power infrastructure are the main reasons
for the stable growth of global low-voltage cable and component market demand.
However, problems such as financing difficulties, complex planning, and land permits also restrict the development of
this market.
Below, we analyze the future trend
of the low-voltage cable market from the aspects of region, end application market, and supplier.

First, let's look at
the region.
Developing countries such as Asia Pacific, South America, the Middle East and Africa are concentrated in developing countries due to the acceleration of industrialization and the increasing demand for power transmission and distribution network renovation and expansion, which has become the fastest growing regional markets for low-voltage cable markets
.
Among them, the Asia-Pacific market will become the regional market
with the greatest demand.
In 2015, the market demand is expected to reach 42.
6 billion US dollars.

It is estimated that from 2015 to 2020, the low-voltage cable and component market in the Asia-Pacific region is expected to reach a compound annual growth rate of 7.
6%.

In addition, developed countries such as Europe and North America are further driving the demand
for low-voltage cables and components due to the upgrading of existing transmission and distribution systems.

Secondly, we look at
the end application market.
Infrastructure, industrial, and renewable energy are the three main end-use markets
.
From the perspective of the installation environment, low-voltage cables can be divided into underground cables and overhead cables
.
At present, in developed countries such as Europe and North America, underground cables are preferred because they can reduce the impact on the surrounding environment and also protect the cable
.
In developing countries, such as India, China and ASEAN countries in the Asia-Pacific region, Latin American countries and the Middle East and Africa, overhead cables are more favored, both at the technical level and because of cost factors
.

Finally, we look at
the supplier.
Italy's Prysmian Group, France's Nexans, America's General Cable, Japan's Sumitomo Electric Electric, Germany's Nktor Cable, Switzerland's ABB, China's Far East Cable, America's Encore Wire, India's Polycab Cable, etc.
will become the world's leading low-voltage cable and component suppliers
.

Through the counterfeiting phenomenon of low-voltage cables and the analysis of the real estate market, it is not difficult to re-understand the market prospects
of low-voltage cables for construction from the front and side.
No matter how strong the call to enter the high-end market, the market demand
for low-voltage cables cannot be ignored.

In 2014, the real estate market is likely to continue to expand, which means that the demand for low-voltage cable market is also expanding, for related wire manufacturers, only by firmly occupying the low-voltage cable market can the foundation of high-end product research and development be consolidated; Only by making high-quality and low-cost wire and cable products can we gain the favor
of the market and users.
Obviously, high-end product research and development requires a lot of research and development costs, and the market capacity is limited, which is not within the reach of small and medium-sized cable manufacturers, and only on the basis of "capital preservation" (constantly consolidating the market they are good at) can they move towards the high-end market
.