Power distribution switch develops momentum Smart grid boosts market demand

China's distribution switch control equipment industry is in an unprecedented boom. In the eight years since 2003, the compound annual growth rate of sales revenue of the industry has reached 30%, and the momentum of development has been rapid. According to the "2012-2016 China High Voltage Switching Industry Investment Strategy and In-Depth Research Consultation Report", China's high voltage switch industry will use smart grid construction as an opportunity during the "12th Five-Year Plan" period, relying on UHV AC and DC transmission projects. Enhance the ability of independent innovation, greatly enhance the level of intelligent switchgear equipment, and promote environmental protection, energy saving, emission reduction equipment;

With the continuous growth of power grid construction investment projects, as well as the increasing demand for railway electrification and urban rail transit construction, the industry will usher in a broader market. Statistical data analysis shows that China’s power grid investment has grown rapidly since 2003, with a compound annual growth rate of 25%.

At the same time, the competitiveness of domestic companies has risen rapidly, gradually breaking the situation in which foreign brands such as ABB and Siemens dominate the market. State-owned and private enterprises have competed with foreign brands on the same stage.

In spite of this, it is still unable to solve the problem of inadequate transmission capacity of the grid. The investment in urban rail transit infrastructure construction also shows an upward trend. According to market research, six cities, including Beijing and Shanghai, are planning or planning to expand the existing subway network. In addition, there are 25 cities planning to develop urban rail transit. According to the calculation of the demand for high and low voltage switchgear for the Guangzhou Metro Line 3, 46 to 50 sets of low-voltage switchgear equipment are required on an average per kilometer subway line, requiring 15 C-GIS units. Based on this calculation, before 2015, rail transit will require 75,000 low-voltage switchgears and 22,500 C-GISs. In addition, the construction of large-scale projects such as the West-East Gas Pipeline, the South-to-North Water Transfer Project, and airports will also provide a large market space for the distribution switch control equipment industry.