1. Industry Overview

Power cable refers to the wire products used to transmit electrical energy or signals, which are mainly composed of conductors, insulating layers, sheath layers and armor layers. According to different uses, power cables can be divided into cables for power systems, cables for communication systems, and cables for industrial systems. Among them, the power system cables can be divided into high-voltage cables, medium-voltage cables and low-voltage cables according to different rated voltages.

Power cable is an important infrastructure for national economic and social development, widely used in various fields, such as electricity, communications, transportation, construction and so on. With the rapid growth of China's economy and the acceleration of urbanization, the demand for electricity and information is increasing, which promotes the rapid development of China's power cable industry. In recent years, the Chinese government has issued a series of policies and measures to support new infrastructure, energy transformation, UHV construction and other fields, providing huge market space and development opportunities for China's power cable industry.

2. market size

According to data from the Champ Consulting Group,2022China's power cable production was 5620Ten thousand kilometers, more 2021Annual increaseLong 146thousands of kilometers. Assume that the average price of power cables is 43Yuan/Kilometers, then 2022China's power cable industry market size of about 2416billion, up 9.1 percent year-on-year。

Expected2023In 2010, the market size of China's power cable industry will maintain steady growth, mainly benefiting from the following factors:

（1) New infrastructure investment continues to advance. New infrastructure refers5GThe construction of new infrastructure, represented by artificial intelligence, industrial Internet, Internet of things, cloud computing and big data, is an important engine for China's future economic development. According to the plan of the National Development and Reform Commission,2025In the year, China will build a city covering both urban and rural areas.5GNetwork to realize the open sharing of data resources of the whole society;2035In 2002, China will become the world's leading digital economy innovation and development highland. The realization of these goals will put forward higher requirements for power cables, such as high-speed transmission, large-capacity storage, low loss, and high reliability. according to the prediction of the champ consulting group,2023Throughout the year, the demand for power cables in China's new infrastructure sector will reach1400Billions of dollars.

（2) The energy transition is accelerating. Energy transition refers to the energy system reform with the main contents of improving energy efficiency, optimizing energy structure and developing clean energy. It is an inevitable choice to deal with climate change and ensure energy security. According to the China Carbon Peak Carbon Neutral Action Plan,2030In 2010, China's non-fossil energy accounted for an important proportion of primary energy consumption reached25%, the installed capacity of wind power and photovoltaic power generation reached12billion kilowatts and14billion kilowatts;2060In 2010, China's non-fossil energy accounted for an important proportion of primary energy consumption reached80%Above. The realization of these goals will pose more challenges and opportunities for power cables, such as adapting to complex environments, withstanding high temperature and high pressure, and meeting intelligent needs. according to the prediction of the champ consulting group,2023Throughout the year, the demand for power cables in China's clean energy sector will reach900Billions of dollars.

（3) UHV construction is progressing steadily. UHV means1000EHV transmission technology above kilovolts is an effective means to solve the problem of long-distance, large-capacity and low-loss transmission. According to the planning of the National Energy Administration,2025In 2010, China's UHV construction will form an UHV power grid with AC as the main and DC as the auxiliary, so as to realize the optimal allocation of national power resources. UHV construction puts forward higher requirements on the quality and performance of power cables, such as heat and pressure resistance, anti-interference, anti-corrosion and so on. according to the prediction of the champ consulting group,2023Throughout the year, the demand for power cables in China's UHV sector will reach700Billions of dollars.

In summary, according to the projections of the Champ Consulting Group,2023Throughout the year, the market size of China's power cable industry will reach5600billion, with a year-on-year growth rate7.7%。

3. competition pattern

The competitive landscape of China's power cable industry is characterized by multi-polarization, with low industry concentration and fierce market competition. According to data from the Champ Consulting Group,2022China's power cable industry has about 3100.Production enterprises, of which about 850 enterprises above designated sizeHome。2022The total market share of the top ten companies in China's power cable industry was 29.5 percent., the largest of which is Zhongnan Optical Cable Co., Ltd., with a market share of 5.8。

The competitive landscape of China's power cable industry is mainly affected by the following factors:

（1) Technological innovation capability. Technological innovation is a key factor to improve the quality and performance of power cable products, and it is also an important means to improve the core competitiveness and market share of enterprises. With the diversification and personalization of the market demand of China's power cable industry, the demand for high-end special cables is increasing, and the ability of technological innovation has become an important criterion to distinguish the advantages and disadvantages of enterprises. At present, the overall level of technological innovation capability of China's power cable industry is relatively low, mainly concentrated in the hands of a few leading enterprises, such as Zhongnan optical cable, aerospace science and technology, Dewei new materials and so on. By continuously increasing R & D investment and talent introduction, these enterprises have successfully developed a number of products with independent intellectual property rights and international advanced level, such as superconducting cables, submarine optical cables, ultra-high temperature fire-resistant cables, etc., which have enhanced their competitiveness and influence in the high-end market.

（2) Brand building ability. Brand building is an effective way to enhance the reputation and popularity of power cable products, and it is also an important means to enhance the market influence and customer loyalty of enterprises. With the continuous improvement of Chinese consumers' requirements for product quality and service level, brand building ability has become an important factor affecting the market share and profit margin of enterprises. At present, the overall level of brand building capacity of China's power cable industry is relatively low, mainly concentrated in the hands of a few leading enterprises, such as Zhongnan optical cable, aerospace science and engineering, Dewei new materials and so on. By continuously strengthening brand publicity and promotion, these enterprises have successfully created a number of brands with high popularity and reputation, such as Zhongnan optical cable, aerospace science and engineering, Dulwich new materials, etc., which have enhanced their recognition and selection in the middle and high-end market.

（3) Cost control ability. Cost control is a key factor to reduce the price of power cable products and improve the profitability of enterprises, and it is also an important means to deal with market competition and risks. With the intensification of market competition in China's power cable industry and the decline of product prices, cost control ability has become an important factor affecting the survival and development of enterprises. At present, the overall level of cost control ability of China's power cable industry is relatively low, mainly concentrated in the hands of a few leading enterprises, such as Zhongnan optical cable, aerospace science and engineering, Dewei new materials and so on. By continuously optimizing the production process and management process, these enterprises have effectively reduced the costs of raw materials, labor and transportation, and improved the cost performance and market competitiveness of their products.

In summary, according to the analysis of the Champ Consulting Group,2023The competitive landscape of China's power cable industry will present the following characteristics:

（1) Industry concentration will further increase. With the upgrading and standardization of the market demand of China's power cable industry, the requirements for product quality and performance will continue to improve, and the technological innovation ability, brand building ability and cost control ability of enterprises will continue to increase. This will lead to the survival of the fittest and resource integration within the industry. Leading enterprises will further expand their market share and advantages through technological innovation and brand building, and small and medium-sized enterprises will face the pressure of elimination and integration.

（2) Industry differentiation will be further intensified. With the diversification and personalization of the market demand of China's power cable industry, the demand for high-end special cables will continue to increase, and the demand for low-end ordinary cables will gradually decrease. This will lead to changes in the product structure and value chain within the industry. High-end special cables will become the growth point and profit point of the industry, and low-end ordinary cables will become the industry's drag and short board.

（3) The way the industry competes will be further diversified. With the change and innovation of the market environment of China's power cable industry, the way of competition for enterprises will continue to update and expand. In addition to the traditional price competition, quality competition, service competition and other ways, enterprises will also enhance their market influence and customer loyalty through network marketing, channel expansion, cross-border cooperation and other ways.

4. development trend

The development trend of China's power cable industry is mainly affected by the following factors:

（1) Increased demand for intelligence. Intelligence refers to the use of information technology, Internet of Things technology, artificial intelligence technology and other means to achieve the monitoring, control, optimization and management of power cable products. Intelligence can improve the performance and efficiency of power cable products, reduce operation and maintenance costs and risks, and improve user experience and satisfaction. With the development of China's social economy and the improvement of science and technology, the demand for intelligence will continue to increase. According to the prediction of the Champ Consulting Group,2023The scale of China's intelligent power cable market will reach1000Billions of dollars.

（2) Increased demand for greening. Greening refers to the use of environmentally friendly materials, energy-saving technologies, recycling and other means to achieve the environmental impact and resource consumption in the production and use of power cables. Greening can enhance the social responsibility and market competitiveness of power cable products, which is in line with the national strategic goal of energy conservation and emission reduction and carbon neutralization. With the improvement of environmental protection awareness and the strengthening of policy support, the demand for greening will continue to increase. According to the prediction of the Champ Consulting Group,2023The scale of China's green power cable market will reach800Billions of dollars.

（3) increased demand for diversification. Diversification refers to the development of power cable products with different functions and characteristics according to different application scenarios and user needs. Diversification can meet the segmentation and personalization of market demand, and increase the added value and differentiation advantages of products. With the adjustment of China's economic structure and the development of emerging fields, the demand for diversification will continue to increase. according to the prediction of the champ consulting group,2023The scale of China's diversified power cable market will reach500Billions of dollars.

In summary, according to the analysis of the Champ Consulting Group,2023The development trend of China's power cable industry will present the following characteristics:

（1) Intelligent, green and diversified will become the main direction of the industry. With the upgrading and innovation of market demand, the requirements for the performance and efficiency, environment and resources, functions and characteristics of power cable products will continue to improve, prompting enterprises to continue to carry out technological innovation and product development to achieve intelligent, green and diversified products.

（2) Special cables, optical cables, submarine cables, etc. will become the main growth points of the industry. With the rapid development of new infrastructure, energy transformation, UHV construction and other fields, the demand for high-end special cables, optical cables, submarine cables and other sub-sectors will continue to increase, these areas have high technical barriers and profit margins, will become the industry's main growth points and investment hotspots.

（3) Network marketing, channel expansion, cross-border cooperation will become the main way of competition in the industry. With the change of market environment and innovation, the competition mode of enterprises will be constantly updated and expanded. In addition to the traditional price competition, quality competition, service competition and other ways, enterprises will also enhance their market influence and customer loyalty through network marketing, channel expansion, cross-border cooperation and other ways.

5. investment opportunities

According to the analysis of the Champ Consulting Group,2023China's power cable industry has the following investment opportunities:

（1) Invest in the field of high-end special cables. High-end special cables refer to power cable products with special functions or adapted to special environments, such as superconducting cables, submarine optical cables, ultra-high temperature fire-resistant cables, etc. These products have high technical barriers and profit margins, and market demand continues to grow, making them the most potential and promising areas in the industry.

（2) Invest in the field of optical cable. Optical cable refers to the power cable products that use optical fiber as the transmission medium, which has the advantages of fast transmission speed, large capacity, small loss, and strong anti-interference. Fiber optic cables are widely used in communications, data centers, intelligent transportation and other fields, is an important part of the new infrastructure, the market demand is huge, is the industry's most dynamic and competitive areas.

（3) Invest in the field of submarine cables. Submarine cable refers to the power cable products suitable for marine environment, which has the characteristics of water pressure resistance, corrosion resistance and wear resistance. Submarine cables are mainly used in offshore wind power, submarine oil and gas, cross-sea communications and other fields. They are an important carrier of energy transformation and international cooperation. The market demand is stable and it is the most stable and safe field in the industry.