Power transmission and transformation equipment refers to the equipment used for the transmission and distribution of electric energy in the power system, including transformers, switches, transformers, insulators, lightning arresters, DC transmission converter valves, wires and cables and other primary equipment, as well as relays, measuring instruments, signal equipment, control cables and other secondary equipment. Power transmission and transformation equipment is an important part of the power system, which plays an important role in the safe, efficient and clean supply of electricity.

According to data from Champ Consulting GroupIn 2022, the market size of China's power transmission and transformation equipment will reach 340 billion billion yuan, up 7.8 year on year. Among them, the market size of primary equipment was 242.97 billion yuan, accounting for 76.9 percent, up 9.6 percent year-on-year; the market size of secondary equipment was 72.54 billion yuan, accounting for 23.1 percent, up 11.5 percent year-on-year. From the perspective of product types, wire and cable, power distribution switch control equipment manufacturing, photovoltaic equipment and component manufacturing, and transformer, rectifier and inductor manufacturing are the four highest-revenue sectors, achieving revenue of 103.07 billion yuan, 51.44 billion yuan, and 51.18 billion yuan. Yuan and 33.88 billion yuan, accounting for 32.7, 16.3, 16.2 and 10.7 respectively.

From the perspective of the competitive landscape, China's power transmission and transformation equipment industry has a large number of participating enterprises and rich product types, but on the whole it presents the characteristics of high concentration of head enterprises. According to data from Shangpu Consulting Group, in 2022, there will be more than 14000 power transmission and distribution equipment manufacturing companies in the country, of which the most competitive 100 companies have won a total of about 40 billion yuan in projects, accounting for the total bid amount. About 87% of it.The main listed companies include China Western Electric (601179), Special Electric (600089), Baobian Electric (600550), Pinggao Electric (600312), Zhengtai Electric (601877), Radio and Television Electric (601616), Xu Ji Electric (000400), Guannan Electric Rui (300724), Sifang shares (601126), Guowang Yingda (600517), etc.

Looking ahead, Shangpu Consulting believes that China's power transmission and transformation equipment market will maintain steady growth in 2023, which is expected to reach 347.06 billion billion yuan.A year-on-year increase of 10%. The main growth drivers come from the following:

One is the promotion of the national "double carbon" goal. In September 2020, President Xi Jinping announced at the 75th UN General Assembly that China will strive to reach the peak of carbon dioxide emissions by 2030 and strive to achieve carbon neutrality by 2060.5. This puts forward new requirements and goals for my country's energy structure adjustment and power system construction, and also brings new opportunities for the power transmission and transformation equipment industry. According to the 2021 of China Energy and Power Development Report issued by China Electric Power Planning and Research InstituteBy 2030, China's non-fossil energy will account for 25% of primary energy consumption, and renewable energy will account for 20% of primary energy consumption. By 2060, the proportion of non-fossil energy in primary energy consumption will reach 80%, and the proportion of renewable energy in primary energy consumption will reach 70%. This means that my country will vigorously develop clean energy such as wind energy, solar energy, hydropower, and nuclear power, and accelerate the elimination of high-carbon energy such as coal. This puts forward higher technical requirements for the power transmission and transformation equipment industry, and also creates a larger market space for it.

The second is the construction of new energy power system. With the rapid development of clean energy, China is speeding up the construction of a new power system with new energy as the main body, in order to achieve the balance of power supply and demand, optimize resource allocation, improve system efficiency and reliability. This requires the power transmission and transformation equipment industry to provide higher voltage level, larger capacity, more flexible control, more intelligent products and solutions to adapt to the characteristics and needs of the new power system. For example, UHV power transmission and transformation technology is an effective means to realize long-distance, large-capacity and low-loss power transmission, and it is also a key technology to solve the problem of clean energy transmission in the west and power supply in the eastern load center.In June 2021, the National Development and Reform Commission approved the "Baihetan-Zhejiang ± 800 kV UHV DC Transmission Project Feasibility Study Report". This is the second Baihetan Hydropower Station after the Baihetan-Jiangsu ± 800 kV UHV DC transmission project. Delivery channel. In addition, the "14th Five-Year" Power Grid Development Plan of China Southern Power GridIt is proposed that China Southern Power Grid will plan to invest about 670 billion yuan to speed up the construction of digital power grid and modern power grid, and promote the construction of a new power system with new energy as the main body. At the same time, the State Grid announced that during the "14th Five-Year Plan" period, it will plan to invest about US $350 billion (about 2.23 trillion RMB) to modernize the power grid.

The third is the innovation of intelligent and digital technology. With the continuous development and application of information technology, communication technology, Internet of Things technology, artificial intelligence technology, etc., the power transmission and transformation equipment industry is transforming and upgrading in the direction of intelligence and digitalization to improve product performance, reduce operation and maintenance costs, and enhance security Wait. For example, the intelligent transformer is a kind of transformer with adaptive adjustment function, online monitoring function, remote control function and other characteristics, which can realize the dynamic adjustment of load side voltage, power factor, harmonics and other parameters, so as to improve the efficiency and life of the transformer, reduce line loss and operation and maintenance costs, enhance security and so on. Smart transformer is an important part of the smart grid, and it is also an important development direction of the power transmission and transformation equipment industry. According to data from Shangpu Consulting Group, the size of China's smart transformer market in 2022 is about 15.4 billion yuan, and it is expected to reach 30 billion yuan by 2025, with an average annual compound growth rate of 24.2. On the other hand, digital technology is also widely used in the power transmission and transformation equipment industry, such as digital transformers, digital relays, digital switches, etc., which can achieve high-precision measurement, high-efficiency control, and high-reliability protection of power transmission and transformation equipment. Digital technology can not only improve the performance and quality of power transmission and transformation equipment, but also provide more data and information for the power system, and provide support for the optimal management and decision-making of the power system.

Of course, the power transmission equipment industry is also facing some challenges and opportunities. On the one hand, with the opening of the international market and the intensification of competition, domestic enterprises need to improve their core competitiveness to cope with the pressure and challenges from foreign enterprises. On the other hand, with the promotion of the "Belt and Road Initiative" initiative and the deepening of international cooperation, domestic enterprises also have the opportunity to expand overseas markets and participate in the construction and service of the global power system. Therefore, Champ Consulting recommends that relevant companies adopt the following strategies:

Strengthen technology research and development, improve product quality. Technological innovation is the core driving force of the power transmission and transformation equipment industry, and it is also a key factor to improve the added value and competitiveness of products. Relevant enterprises should increase investment in technology research and development, master core technologies and patents, improve product quality and performance, and meet the needs of different customers and markets.

Expand overseas markets and enhance international influence. The overseas market is not only an important growth point of the power transmission and transformation equipment industry, but also an effective way to improve international influence and brand awareness. Relevant enterprises should actively participate in the Belt and Road Initiative and international cooperation projects, and use their own advantages and experience to provide quality products and services to overseas customers.

Strengthen win-win cooperation and form industrial alliances. Win-win cooperation is not only an important development concept of power transmission and transformation equipment industry, but also an effective means to achieve industrial coordination and optimization. Relevant enterprises should strengthen cooperation and exchanges with upstream and downstream enterprises, scientific research institutes, government departments, etc., form industrial alliances or consortia, and share resources, information and benefits.

In short, the power transmission equipment industry is an industry with broad prospects and potential, and it is also an industry full of challenges and opportunities. Shangpu Consulting believes that driven by multiple factors such as the national "double carbon" goal, new energy power system, intelligent and digital technology, China's power transmission and transformation equipment market will maintain steady growth in 2023. and show the characteristics of higher voltage level, larger capacity, more flexible control, more intelligent and so on. At the same time, relevant enterprises should also actively respond to changes and competition in domestic and foreign markets, strengthen technological innovation, improve product quality, expand overseas markets, strengthen cooperation and win-win strategies, in order to enhance their core competitiveness and international influence, and achieve sustainable development.