IoT 500 billion yuan "gold mine" frequency converter will give birth to geometry

Editor's note: The "Twelfth Five-Year Plan" of the Internet of Things is entering the stage of expert demonstration. By then, industrial and automation control and other 10 industries will enjoy a 500 billion yuan "gold mine". How will the inverter face such an opportunity? This cake? At present, there are more than 300 inverter manufacturers on the domestic market, and the main brands are also maintained at around 20 to 30. Foreign brands still dominate the medium and low voltage inverter market in China. The history of the establishment of most domestic companies in China is not long. Many new products enter the market in a short period of time. It is difficult to compete with long-established international famous brands in terms of product maturity and brand awareness.

According to the latest news: As an important part of the development of the next-generation information technology industry, the Twelfth Five-Year Plan of the Internet of Things is entering the phase of expert demonstration. It is expected that a ministerial office will be held in September and the fastest will be announced in the same month. By then, industrial and automation control and other 10 major industries will enjoy a total of 500 billion yuan in gold. The frequency converter is widely used in the production of power electronic devices, production of drive protection integrated circuits, electrical transmission and system control technologies, etc. As the country gradually leans and supports the construction of the Internet of Things in terms of funds and policies, the inverter may break the current Bottleneck, usher in another spring in the development process.

Current status of inverter industry

In the past 20 years, China's inverter industry has gradually begun to mature from the initial stage to the present and has developed rapidly. Since the beginning of the 21st century, the growth rate of the medium- and low-voltage inverter market in China has exceeded 20%, far exceeding the level of GDP growth in recent years. In 2006, the market capacity of medium- and low-voltage inverters in China has reached about 7.6 billion yuan.

Considering the advantages of the inverter itself, the development speed of the industry and the market, the status quo and potential, and the favorable macro environment, the development prospects of China's medium and low voltage inverter industry are very optimistic. However, there are potential risks for the production companies in the industry, especially the local production companies.

At present, there are more than 300 inverter manufacturers on the domestic market, and their strength and scale are uneven. Individual companies still use workshop-style production models. With the intensification of market competition, many brands are destined to be phased out. The future inverter market will be a market with higher brand concentration and more orderly competition; foreign brands still dominate the medium and low voltage inverter market in China. status. The history of the establishment of most domestic companies in China is not long. Many new products enter the market in a short period of time. It is difficult to compete with long-established international famous brands in terms of product maturity and brand awareness.

Of course, there are many reasons constraining the development of China's inverter companies. For example, the operation of some inverter manufacturers is outsourced. For example, outsourcing some of the inverter components, if not properly managed, there will be potential risks. In addition, due to competitive pressures, a company may choose to concentrate its funds and technology to develop a single product and market, resulting in a single operating situation, such as the production of a special inverter suitable for a certain industry.

Since the 21st century, China's inverter industry is highly fragmented. Many foreign brands built factories in China and implemented localized operations. The personnel and funds of the original domestic-funded brands were continuously separated, and many companies were established, mainly in the coastal areas such as Guangdong, Zhejiang, Shandong, and Shanghai.

At present, there are more than 300 inverter manufacturers on the domestic market, and the main brands are also maintained at around 20 to 30. Foreign brands still dominate the medium and low voltage inverter market in China. The history of the establishment of most domestic companies in China is not long. Many new products enter the market in a short period of time. It is difficult to compete with long-established international famous brands in terms of product maturity and brand awareness.

The domestic inverter market started with the entry of foreign brands, and the foreign brands were predominant. The strength of China's inverter supporting industry is relatively weak. There is a certain gap between domestic brands and foreign brands in terms of technology, manufacturing, industrial design, etc., as well as financial strength. At present, the share of foreign brands in the domestic inverter market is about 70%. Local inverter companies mainly produce V/F control products. For products with superior performance and high technological content, such as vector inverters, most companies in China have not yet developed mature products.

It is understood that foreign brands still dominate the domestic medium and low voltage inverter market. Mainly ABB, Siemens, Fuji Electric, Mitsubishi Electric, Yaskawa Electric, Delta, Schneider, Emerson, Danfoss and other brands, occupy the top 12 low-voltage inverter market in China.

The largest domestic company, Infinity, is already ranked 13th. Other companies are even smaller.

Therefore, China's inverter market is still price-oriented, which may lead to many international brands in the country to promote the inverter model and international differences, but also for the local drive brand development provides a certain opportunity. With the rise of local brands, the market share of domestic-funded inverter companies is gradually expanding, especially in recent years, there has been a trend of accelerating the substitution of foreign brands. Although it does not have the strength to compete with top international brands such as Siemens and ABB, it shows certain competitive advantages in some segmented products and markets, and its market share gradually expands. It is expected that the market share of domestic brands will surpass that of European and American brands in the next few years.

Developing a long-term drive for the drive

Due to the constraints of technology and capital strength, the development of China's inverter has been "situated." According to industry experts' forecasts, it is understood that in recent years, China's inverter market has maintained a growth rate of 12-15%, and it is expected that it will maintain a growth rate of at least 10% over the next five years. At present, the growth rate of the installed capacity (power) of the upconverter in the Chinese market is actually around 20%. It is expected that the inverter market will become saturated and gradually mature after at least 10 years.

Inverters have been unprecedentedly developed and applied in the fields of cement, elevators, printing, electric power, and other modernizations as well as medicine, communications, transportation, transportation, electric power, electronics, and environmental protection. Almost all industries in the national economy are inseparable from inverters. From the standpoint of product advantages, through high-quality control of the motor speed and improvement of manufacturing process standards, the inverter will not only help to improve the level of manufacturing processes, especially in the field of fine processing, but also can effectively save energy, is currently the most ideal and most promising Motor energy-saving equipment.

With the introduction of the Twelfth Five-Year Plan of the “Internet of Things”, inverters will go hand in hand with power electronic technology, motor control methods, and automation control levels to achieve common development. This confirms the old saying: The prospects are good, and the road ahead is rugged. The author believes that China's inverter industry will be able to seize the opportunity to break the bottleneck of the current development and usher in the spring of the industry!