Forecast and analysis of market status and development trend of China's wire and cable industry in 2022（二）

Development trend of wire and cable industry

1. Steady economic growth and the implementation of major national strategies promote the continuous development of the wire and cable industry

One of the six "new" goals of economic and social development during the "14th Five-Year Plan" period: to achieve new results in economic development, to achieve sustained and healthy economic development on the basis of significantly improved quality and efficiency, to fully develop growth potential, to strengthen the domestic market, and to improve economic structure. It will be more optimized, the innovation capability will be significantly improved, the industrial base will be advanced, the level of modernization of the industrial chain will be significantly improved, the agricultural foundation will be more stable, the coordination between urban and rural areas will be significantly enhanced, and major progress will be made in the construction of a modern economic system. State Grid and China Southern Power Grid's "14th Five-Year" power grid planning investment will exceed 2.9 trillion yuan. This is significantly higher than the total investment of 2.57 trillion yuan in the national power grid during the "13th Five-Year Plan" period and 2 trillion yuan during the "12th Five-Year Plan" period. It can be seen that, benefiting from the national long-term economic development plan and the advancement of new infrastructure and smart grid construction, the wire and cable industry will continue to be optimized and upgraded, showing a sustained and stable growth trend.

2. The industry concentration is gradually increasing

Wire and cable manufacturers have obvious economies of scale. Larger enterprises in the industry have the advantages of large production capacity, complete product specifications, good product quality, strong financial strength, low long-term average cost, strong bargaining power with suppliers, and complete product specifications. Under the continuous strengthening of quality and safety supervision and special rectification of wire and cable products by the state, a group of wire and cable enterprises with small scale and lack of core competitiveness are prompted to withdraw from the market, which is conducive to enterprises with quality and brand core competitiveness to achieve good economic benefits. , to further enhance the industry concentration. At the same time, advantageous enterprises abandoned the extensive development model and practiced differentiated development paths. Among them, some companies have been focusing on professional fields for a long time and have become more refined and stronger by strengthening R&D and fine management; some companies have made efforts to transform from manufacturers to solution providers by virtue of their product line advantages; ” and other integrated advantages, expand to the field of engineering design and service, and carry out EPC project contracting at home and abroad, extend the value chain, and gradually reflect the comprehensive advantages. The entire industry began to shift from shoddy products and low-price disordered competition to quality, service, and brand competition, and cable companies began to develop in the direction of specialization and integration. The concentration of the wire and cable industry is gradually increasing, and it will achieve benign and sustainable development in the future.

3. Product structure optimization and upgrading

With the advancement of science and technology, the transformation and upgrading of traditional industries, and the rapid development of strategic emerging industries and high-end manufacturing, my country's economy and society are further developing in the direction of safety and environmental protection, low-carbon energy conservation, informatization, and intelligence. National smart grid construction, modern city construction, new energy vehicle manufacturing and rail transit construction have put forward higher requirements for the function and quality of wire and cable, and constantly promote the optimization and upgrading of wire and cable product structure.

For more information, please refer to the "Research Report on Market Prospects and Investment Opportunities of China's Wire and Cable Industry" issued by China Business Industry Research Institute. At the same time, China Business Industry Research Institute also provides industrial big data, industry intelligence, industry research reports, industrial planning, and park planning. , 14th Five-Year Plan, industrial investment promotion and other services.