Security cable market will continue to grow rapidly

As the country’s investment in power grid construction has increased and the pace of rapid development of the domestic security industry has continued, the domestic wire and cable industry has achieved tremendous development. As an important connection and transmission medium for security systems, security cables have also been greatly developed following the full application of security systems in social life.

Policy: The benefits of the security cable in the Twelfth Five-Year Plan With the continuous development of the security industry, the security system has gradually entered the millions of households and continues to be humanized and intelligent. At present, the nationwide urban alarm and monitoring system has begun to take shape. The eastern coastal cities have basically completed the construction of the second and third phases of the project. According to the "Twelfth Five-Year Plan" security plan, during the "Twelfth Five-Year Plan" period, the urban areas in the country should basically complete the construction of an alarm and monitoring system to achieve full coverage of key areas, and provincial and municipal levels and county-level public security organs with conditions. Complete the construction of monitoring and warning platform database to achieve information sharing across regions, departments, and police.

The "2012-2016 China Security Cable Industry Market Research and Investment Forecast Analysis Report" shows that the construction of "Safe City" will be an important driving force supporting the rapid development of the security industry. With the construction of "Safe City" in China as a whole, the central and western regions and the second and third tier cities and counties will be launched, in addition to the continuous expansion of the security demand market in major developed cities. Security cables, as an important link between security devices, also play an important role in this.

Although China's security cable industry is facing many opportunities, its development is extremely immature, industry competition is disorderly, products are short of goods, and the phenomenon of cutting corners and materials is widespread. As copper and other raw materials rose, interest rates increased. Some manufacturers used recycled copper or other materials instead, even reducing the wire diameter to reduce costs. These substandard products cause the system to fail to meet the requirements for signal transmission, which seriously disrupts the development of the security cable market.

The industry research team analyzed that while the development of China's security cable industry is not yet mature, its outlook is promising. As a transmission medium for security systems, security cables play an important role in the system. Even the best security products, if not matched with good quality security cable products, will greatly reduce their effectiveness, and the life of the security system will be greatly reduced. It is estimated that the output value of China's security cable industry will reach 82.5 billion yuan this year, with a growth rate of more than 20%.

Status Quo: The market is diversified and foreign capitals compete in China. With the rapid development of the national economy and information technology, the country’s investment in power grid construction has increased, and the pace of the rapid development of the domestic security industry continues to move forward, requiring a lot of wire and cable These have stimulated the tremendous development of the domestic wire and cable industry. According to incomplete statistics, the cable market is growing at an annual rate of 8% to 12%, and the security cable is rapidly growing at a rate of 15% to 20%. Compared with electric power, telecommunications, radio and television and other industries, the security cable industry has objective conditions such as late start-up, backward technology and equipment, and small industrial scale. The major manufacturers of domestic cables mainly focus on the Yangtze River Delta and the Pearl River Delta region. According to the scale of the company and its characteristics, the company is generally divided into: foreign-funded enterprises, domestic professional companies, and general small-scale enterprises.

Foreign-funded enterprises also look to the huge potential of China's wire and cable industry and set up factories in China to break into the Chinese cable market. Such as the United States Belden, Italy Pirelli, France Nexans, and other famous cable brands. These companies' products cover almost all wire and cable product areas, ranging from 220 to 500 kV high-voltage and ultra-high-voltage cross-linked cables to tiny electronic cables. The size of the factories is very large or small. However, due to relatively high prices, these branded products are generally used in high-demand professional markets, so their market share will not be too high.

2013 security cable ushered in warm spring domestic security cable leading enterprises, such as Shenzhen Lian Jiaxiang, product quality, fair prices, the company is currently in large-scale development; Guangzhou, Guangdong Road, is the rapid development of domestic weak electricity in recent years The cable company; Diyi, Yangzhou, is a joint-stock company that produces high and low voltage electrical complete control equipment, ship (ship) cables, and weak cables; Epson, from Wharton International (Hong Kong) Investment Co., Ltd. and Shanghai Aipu Electronic Cable System Co., Ltd. co-invested in the establishment of high-tech enterprises, high-quality cable technology content; Ningbo one boat, is the largest professional intelligent building systems engineering design and product manufacturing companies, and so on. These companies have advanced professional equipment, have professional R & D and production technology, product quality is stable and up to standard, they occupy 70% of the domestic security cable market share.

Private small businesses are mostly small companies that invest in individuals. Although some companies have certain production capabilities, most of them still stay in the small workshop-style production stage, investing only a few hundred thousand yuan to purchase a few necessary production equipment. For processing and production, most of their production processes need to be completed manually. There is no professional testing equipment and testing methods, and production process management is confusing. On-site production workers are both manufacturers of products and inspectors of products. Such non-standard production will result in the emergence of inferior cable products such as counterfeiting, cutting corners, and low performance, affecting the operation and development of the cable market.

Although China's security cable companies are experiencing mixed results, there are backbone forces that have been advertised as Lian Jiaxiang, Yindao, Diyi, Akihabara, Unicom, Epson, and Tiancheng. With a certain amount of R&D and production strength, they stand out in the competition of security cable disorder, which promotes the continuous advancement of security cable technology.

Industry: 2013 Security cable ushered in warm spring China's wire and cable industry is affected by the large-scale domestic infrastructure projects, and its market development prospects have been promising, but due to the impact of technological development, the development of wire and cable industry ushered in a technical turning point . Although China's wire and cable industry has gone through more than two decades and has made considerable progress, it still does not go beyond the big and weak circle, and there is still a big gap compared with world-class companies. There are many problems such as low industrial concentration, large number of enterprises, small scale, insufficient scale economy, insufficient independent innovation capacity, and outstanding product structural contradictions. Despite these problems, the cable industry in China is facing a new take-off opportunity, namely the opportunity to quickly improve its core competitiveness in development. With the constant changes in the world economic structure, China's cable industry is bound to face restructuring and reshuffle. In particular, in recent years, China's economic development has faced bottlenecks in energy and power shortages. The country has continuously increased its investment in electric power, and this industry has entered a period of rapid development. In order to implement the decision-making and deployment of the central government to increase infrastructure construction and stimulate domestic demand, the State Grid Corporation of China plans to increase investment and accelerate the pace of power grid construction. It is expected that the investment scale will exceed 1 trillion yuan in the next 2 to 3 years, including the urban rural network and the The network construction and transformation investment was 790 billion yuan. The construction scale is 260,000 kilometers for 110 (66) kilovolt and above transmission lines and 1.35 billion kVA of transformer capacity.

The business opportunities in China's wire and cable industry have benefited from the accelerated pace of China’s rail transit construction. According to the "2012-2016 Wire and Cable Industry's Macro Investment Environment and Industry Development Trend Analysis Report," during the "12th Five-Year Plan" period, The speeding up of China’s railway construction will bring huge demand for locomotive cables, communications and signal cables. It is estimated that the average annual demand will reach 16-20 million kilometers and 7-10 million kilometers respectively; urban rail transit will generate annual demand for vehicle cables. 2.5-3 million kilometers; the annual demand for signal cables for traffic is 1.5-2 million kilometers. It can be seen that the increase in the mileage of railway operations will drive strong demand for rail transit. At the same time, the demand for wire and cable will rise with the same strong momentum.

This year, the Ministry of Railways plans to invest 800 billion yuan to complete the railway infrastructure, and our country’s railway mileage will also increase by 10,000 kilometers. According to the standard calculation method, general traction power supply accounts for 7%-10% of the total cost of rail transit projects, and 800 billion investment will achieve a market of traction of 80 billion yuan. This shows that China's wire and cable industry will usher in warm spring in 2013. The market demand is objective, but how to get a share of the rail transit construction depends on the strength of the wire and cable manufacturers. Obviously, with the country’s increasing investment in rail transit construction, it not only brings a market to the wire and cable industry, but also places higher demands on wire and cable companies. How to meet the special requirements of rail transit for locomotive cables, communication and signal cables, special cable for tunnels, leakage and radio frequency cables, and power cables and lighting cables is the key to obtaining orders for wire and cable manufacturers.

Independent research and development of a differential competitive dilemma: Overcapacity, R&D capability is lower than foreign According to statistics from British Intertek, there are nearly 10,000 cable manufacturers in China, and there are also thousands of supporting industries such as equipment, raw materials, and semi-finished products. Although China is now the world's largest manufacturer of cable, it has a very low degree of concentration. China's top ten cable companies only account for 7% of the domestic market share of 10%. In contrast, in the cable market structure of developed countries, the top 10 cable manufacturers in the United States (such as GM, Baitong, Corning, and South Line, etc.) accounted for about 70% of the market share; Japan’s 7 largest cable companies (such as Furukawa, Sumitomo, Tengcang, Hitachi, Showa, etc.) accounted for more than 66% of the market share; France's five major cable companies (Nikesen, Xinte, etc.) accounted for more than 90% of the French market share. The concentration of cable companies in China is low, which is inconsistent with China’s status as the world’s largest cable manufacturing country. It also increases the instability of the cable industry in China, which means that most SMEs are not competitive and easily collapse. How to integrate industry resources, increase the market share of large companies, and increase the stability of the cable industry are the top issues that the industry and related departments need to consider.

According to incomplete statistics, the current global cable market scale has exceeded 100 billion euros, of which the Asian market accounts for about 36%, the European market about 31%, the American market about 23%, and other markets about 10%. The average profit rate of China’s largest market share is very low, hovering around 3% (higher margins for ultra-high-voltage cable, submarine power, and new energy special cables). One of the main reasons for this is China’s cable industry products. Mainly in the low-end, can not achieve the Prisman, Nexans, Furukawa and other cable giants of the cable R & D and process control.

The mainstream of China's cable industry is an extensive production and operation model. Most SMEs focus on short-term economic benefits and are reluctant to invest heavily in the research, development and production of high-end products. A lot of basic research work has not been carried out, and the distance to the accumulated knowledge, academics, talents, and experience in the research results of foreign countries over the past century is really not small. There are only a few leading companies in the country, such as the Far East cable, investing in R&D every year. Increase.

Solution: Independent research and development of differential competition Since 2000, China's wire and cable industry has developed rapidly, especially in recent years. Although the economic situation has undergone some changes, the momentum of the development of the wire and cable industry has not only weakened, but has shown a trend of prosperity. . Not only has the number of companies been greatly increased, but it has also seen a certain increase in the overall technical level of the industry. In a certain sense, this proves that China's wire and cable industry is unwaveringly shifting from a "producing country" to a "manufacturing country."

Due to the adjustment of economic structure, coupled with the unfavorable global economic situation and the non-standard bid environment, the general operating rate of wire and cable enterprises in China is insufficient and there is a serious surplus of production capacity. As for the export of this hard bone, it seems that domestic wire and cable companies are rarely able to drop. The fundamental reason is that China's wire and cable companies have insufficient capacity for independent innovation. Although the ability to buy and sell talents and improve technology has, to a certain extent, improved the company's independent research and development capabilities, it is still difficult to compare with the international market's continuous improvement and changes. Well-known wire and cable manufacturers share the market.

Although China's wire and cable market is fertile, there are many difficulties that need to be addressed. Faced with such a fierce competitive environment, how can China's wire and cable companies continue to grow and grow under the circumstances of ensuring profits, and develop into a production enterprise that can compete against the world's cable oligards, and is a common concern of the wire and cable industry. It may be that the root of solving problems is to increase technological R&D and take the road of differentiated competition.

Conclusion:

With the emergence of emerging application markets and increasing market demand in traditional industries, the demand for domestic security cable products will continue to expand. China's security cable industry will receive sufficient development momentum, and the domestic security cable market will continue to grow in the coming years. Showing rapid growth.