After more than 50 years of development, China's low-voltage electrical industry has formed a complete industrial system, with a wide range of product uses and huge market potential. By 2015, the reliability rate of rural power supply reached 99.7%, the comprehensive voltage qualification rate reached 98.5%, and the average comprehensive line loss rate reached 6.2%. This has driven a huge demand for low-voltage electrical appliances on the distribution side of the rural power grid renovation.
       The Current Situation of Low Voltage Electrical Appliance Market in China
       After more than 50 years of development, China's low-voltage electrical industry has formed a complete industrial system, with a wide range of product uses and huge market potential. Statistics show that there are about 1000 series of domestically produced low-voltage electrical products, with an output value of 20 billion yuan. There are over 2000 production enterprises with scale and above, mainly concentrated in coastal provinces and cities such as Guangdong, Zhejiang, and Shanghai. At present, low-voltage electrical products are at the technical level of the first to third generation, and the fourth generation products are still under development and research.
       With the improvement of domestic power construction level and the continuous development of low-voltage electrical production technology, the new generation of low-voltage electrical appliances characterized by intelligence and communication will become high-end products. At present, domestically produced medium and low-end low-voltage electrical appliances basically occupy the vast majority of the domestic market. However, except for a few products that can be evenly matched with similar foreign products, the domestic market share of most products is still very low, and the demand for high-end low-voltage electrical appliances in the domestic market still relies on imports.
       At present, the low-voltage electrical appliance market is gradually expanding with the construction of power facilities. In recent years, the demand for low-voltage electrical appliances at home and abroad has generally been expanding, and the market prospects are very promising. However, domestic low-voltage electrical appliance enterprises generally lack sufficient independent innovation capabilities and high-end market competitiveness. With the intensification of price and channel wars, the overall environment of fierce competition in the domestic low-voltage electrical industry is deteriorating.
       In fact, the technology and production level of China's low-voltage electrical industry are relatively weak, and most enterprises are relatively small in scale. Resources in various aspects are relatively scattered, and they are still in the stage of repeated research and development and mutual imitation in the middle and low-end fields. In addition, the strong invasion of large foreign enterprises has continuously eroded the low-end market of domestic enterprises, leading to increasingly fierce industry competition. Fortunately, many ethnic brands have begun to enhance their awareness of risks. In addition to overcoming the increase in raw material and labor costs, financing difficulties, reducing product management costs, increasing equipment technology upgrades and renovations, strengthening cost management and cost control, they have also emphasized product research and development design, raising the importance of design to an unprecedented level.
       In the increasingly competitive low-voltage electrical industry, the call to enhance brand value through design and overcome the "low-end" problem through design is becoming stronger. And some forward-looking enterprises have bravely taken solid steps to comprehensively enhance brand and product competitiveness through cooperation with well-known design companies. Among them, Jialantu Design has its own mature methods and processes in brand strategy, product planning, and product design, and has long been committed to brand upgrading and product innovation for low-voltage electrical enterprises. Establishing good long-term cooperative relationships with brands such as People's Electric Appliances, Chint, Noyak, Tianzheng, and Long March; It is worth mentioning that the strong alliance between Noah and Jialantu has won unanimous praise from industry insiders and has become a target for many brands to imitate.
       China's low-voltage electrical appliances have formed a certain industrial scale. Looking forward to the future, "enhancing brand value and competitiveness through design" will become a necessary path for low-voltage electrical appliance enterprises to upgrade and transform. By unleashing the enormous potential of design, it is expected to improve the current situation of the low-voltage electrical appliance industry and promote steady progress towards high-end goals.
Looking at the domestic low-voltage electrical industry, various factors that hinder its development are becoming increasingly prominent: overcapacity, insufficient funds, lack of core technology, low-end products, strong foreign brand impact, coupled with the continuous increase in raw material costs, labor costs, and financial costs, the vicious competition in price and channels is gradually upgrading, resulting in a continuous decline in the overall profit growth rate of the industry. The development of most low-voltage electrical enterprises has begun to fall into a bottleneck period.
       Where is the breakthrough path for the low-voltage electrical industry? Faced with the bleak industry situation, many enterprises are thinking about changing. In addition to putting effort into traditional breakthrough models, they also pay attention to the overall design of brands and products. Using "design" to break through has become a consensus among many low-voltage electrical appliance enterprises. It is worth mentioning that the strong cooperation between Jialantu, a leading domestic design enterprise, and the low-voltage electrical brand Noyak has achieved a good story in the industry.
       Seven Characteristics of Low Voltage Electrical Appliance Industry
       Domestic low-voltage electrical appliance production enterprises have a relatively small scale and excessive quantity, with more than 90% of enterprises engaged in repeated production of medium and low-grade products, and three generations of products coexisting.           According to the national policy direction, the structure of low-voltage electrical products needs to be further adjusted in the coming period. Products with outdated technology, large volume, high energy consumption, and environmental pollution will be eliminated.
      A group of well-known low-voltage electrical manufacturers abroad have successively launched new generation products, including Schneider MT series, Siemens 3WL series, ABB E series, GE M-PACT series, and Kemar Magnum series for frame circuit breakers; Molded case circuit breakers include Schneider NS series, Siemens 3VL series, ABB Tmax series, GE Recordplus series, Moeller NZM series, Kemar G series, and Mitsubishi WS series. The new generation of products not only features high performance, electronics, intelligence, modularity, combination, and miniaturization, but also adds features such as communication, high reliability, good maintenance performance, and compliance with environmental requirements. Especially the new generation of products can be connected to the fieldbus system, achieving system networking and making a qualitative leap in the functionality of low-voltage electrical products.
     High performance. The rated short-circuit breaking capacity and rated short-term withstand current are further improved, and Icu=Ics is achieved. For example, Schneider's MT series products have a maximum operating short-circuit breaking and ultimate short-circuit breaking capacity of 150kA.
      High reliability. In addition to requiring high performance indicators, the product can also be used without reducing capacity, and can be used at full capacity for a long time without overheating, thus achieving safe operation.
      Electronicization. Modern enterprises have adopted PC control systems instead of systems composed of electrical and mechanical components, which has become the mainstream of mechanical and electrical control systems. This system requires electrical products to have high reliability and anti-interference ability. It also requires that the contacts can reliably connect low voltage and weak current, and the arc when the contacts are disconnected cannot interfere with the normal operation of electronic circuits.
Intelligence. With the emergence of specialized integrated circuits and high-performance microprocessors, circuit breakers have realized the intelligence of release devices, greatly enhancing the protection function of circuit breakers. They can achieve functions such as overload long delay, short circuit short delay, short circuit instantaneous, grounding, undervoltage protection, etc. They can also display system operating parameters such as voltage, current, frequency, active power, reactive power, power factor, etc. on the circuit breaker, and can avoid misoperation under the influence of high-order harmonics.
     Fieldbus technology. The new generation of low-voltage electrical appliances has achieved communication and networking, and can be connected to various open fieldbuses for bidirectional communication, achieving remote control, signaling, telemetry, and remote adjustment functions of electrical products. The application of fieldbus technology can not only monitor the quality of power distribution, but also reduce losses. Moreover, fieldbus technology can achieve regional interlocking of multiple circuit breakers in the same regional power grid, achieving automation of distribution protection and further improving the reliability of the distribution system. The buses used in the field of industrial fieldbus include Profibus, Modbus, DeviceNet, etc., among which Modbus and Profibus have a significant impact.
    Modularization and combination. Like the Tmax series launched by ABB, thermal magnetic, electronic, and electronic communication release devices can all be interchanged. All attachments adopt a modular structure and can be installed without opening the cover. Combining modules with different functions according to different needs into modular composite electrical appliances is the development direction of the low-voltage electrical industry today. Installing auxiliary contact components, delay components, self-locking components, interface components, mechanical interlocking components, and surge voltage components on the body of the contactor can meet the requirements of different occasions, thereby expanding the product's applicability, simplifying production processes, and facilitating user installation, use, and maintenance. At the same time, it will further improve the reliability and quality of the product.
    The problems that the low-voltage electrical industry needs to face
    Despite years of development, there are still many problems that urgently need to be solved in China's low-voltage electrical industry. When facing good opportunities, do not let your shortcomings become a stumbling block.
    Rising costs have become a major problem faced by the entire electrical industry, and of course, the low-voltage electrical industry is also not immune. The large volume of products, the large consumption of precious metals such as silver, copper, black metals, plastics, and other materials have become the criticism of most low-end low-voltage products in China. It is precisely because materials are subject to international market prices that the profits of low-end low-voltage products have significantly decreased; At the same time, with the shortage of funds, rising financial costs, and rapid increase in employee salaries, the increase in personnel costs is irreversible. On the other hand, it has also caused a continuous decline in the production profits of low-voltage electrical appliances, and many enterprises are already in a state of low profit or loss.
     And this has also brought inconvenience to the crucial scientific research link of the entire industry. With meager profits for enterprises, how can they "learn" if they can't even eat enough.
    The technological level of China's low-voltage electrical industry is improving slowly, and there is a significant gap compared to foreign countries. Taking the invention patents applied for low-voltage electrical products in recent years as an example, foreign companies account for more than 80%. Against the backdrop of the continuous development of new technologies and products for low-voltage electrical appliances, as well as the increasing emphasis on the development of smart grids and safe electricity use, if China's low-voltage electrical industry does not increase investment in scientific research and new product research and development, does not increase basic common technology research, and rapidly improves the independent innovation ability of enterprises, it will inevitably hinder the sustainable development of China's low-voltage electrical industry and lose market competitiveness.
    After foreign competitors entered the Chinese market, they adopted the approach of cooperating with domestic production enterprises, seeking complementary advantages and continuously penetrating the domestic and foreign markets through multiple production lines and channels, which also intensified market competition.
    Driven by corresponding interests, well-known foreign electrical industries have successively seized the electrical appliance market, such as Schneider, Fuji, Siemens, ABB and other internationally renowned enterprises have landed in China. In addition to dividing the domestic high-end market, they also implement a "localization" strategy, setting up factories in China through sole proprietorship or joint venture, resulting in an increasing market share in the domestic mid-range electrical appliance market, and even coveting the low-end market of domestic appliances.
     This undoubtedly has a fatal impact on the "low price advantage" of domestic low-voltage electrical appliances, ultimately forcing enterprises to survive in the cracks of the low-level market.
      On the other hand, there are many production enterprises in China's low-voltage electrical industry, and counterfeiting and price competition still exist, making general low-voltage electrical products in a state of low profit. In order to continue to survive in this cruel market and not be eliminated, the vast majority of enterprises choose to lower prices, seize the market, and increase the market share of their products, in order to make up for or adapt to the dilemma of excessively low profits caused by product price factors.
     There are nearly 10000 low-voltage electrical appliance production enterprises in China, but there are few enterprises with annual sales revenue and total assets above 500 million yuan. There are not many enterprises with independent intellectual property high-end products, and their technology and production equipment are relatively backward. Although some excellent enterprises have made some technological investments, their research and development design capabilities are still seriously insufficient. This has become another factor for foreign-funded enterprises to further increase the proportion of their products in the Chinese market by leveraging their brand, technology, and product advantages.
     The Impact of Smart Grid Development on Low Voltage Electrical Appliances
     From the construction of smart grids to the flourishing development of the new energy industry, from the power industry to the construction industry, low-voltage electrical appliances have a history of more than 50 years in China. With the rapid progress of China's economic construction, low-voltage electrical appliances have also evolved from simple assembly to the fourth generation of intelligent low-voltage electrical appliances today. Due to 80% of electrical energy being distributed or controlled through low-voltage electrical appliances, the market capacity of low-voltage complete equipment is closely related to the development of the power industry. Investment in power grid construction will bring good growth to the low-voltage complete equipment industry.
     In recent years, with the rapid growth of China's national economy and the rapid development of the power industry, the low-voltage electrical appliance industry has maintained a prosperous supply and sales situation for many years. Products have not only achieved a significant increase in sales volume, but also have a market and price in terms of product types and sales prices. As of 2010, China's low-voltage electrical industry has developed into a giant industry with over 1000 product series, more than 170 enterprises above designated size, and a total industrial output value of over 50 billion yuan.
     Currently, the increasing demand for electricity in China has accelerated the pace of power grid transformation. During the 12th Five Year Plan period, China will optimize its power structure, strengthen the construction of smart grids, and the market demand for power equipment will rapidly increase. According to relevant information, State Grid Corporation of China will invest a total of 1.5 trillion yuan in the construction of the smart grid itself and its intelligence, which is about 300 billion yuan per year. This undoubtedly ensures the steady growth of low-voltage electrical appliances during the 12th Five Year Plan period.
     Opportunities brought by the 12th Five Year Plan
     After the 12th Five Year Plan, with the rapid expansion of related industries and industries, the low-voltage electrical appliance industry can be said to have numerous opportunities.
Due to 80% of electrical energy being distributed or controlled through low-voltage electrical appliances, the market capacity of low-voltage complete equipment is closely related to the development of the power industry. Investment in power grid construction will bring good growth to the low-voltage complete equipment industry. During the 12th Five Year Plan period, State Grid of China invested a total of 150 billion yuan in the construction of the smart grid and its intelligence, which is about 300 billion yuan per year. This undoubtedly ensures the steady growth of low-voltage electrical appliances during the 12th Five Year Plan period.
      The average GDP growth rate target for China during the 12th Five Year Plan period is 7%, and the total GDP of China will exceed 55 trillion yuan in 2015. At the same time, under the grand development goals proposed in the "Twelfth Five Year Plan" and the background of sustained macroeconomic growth, fixed assets investment, industrial production and overall consumption, especially the rapid growth of urban population, will certainly drive the growth of power generation and consumption. Therefore, the future market development space of low-voltage electrical appliances will continue to expand.
       At the same time, the new round of rural power grid transformation will also become another strong support for low-voltage electrical appliances. State Grid plans to invest more than 460 billion yuan during the 12th Five Year Plan period to focus on solving the weak rural power grid problem, and basically build a new type of rural power grid that is safe, reliable, energy-saving, environmentally friendly, technologically advanced, and managed in a standardized manner.
By 2015, the reliability rate of rural power supply reached 99.7%, the comprehensive voltage qualification rate reached 98.5%, and the average comprehensive line loss rate reached 6.2%. This has driven a huge demand for low-voltage electrical appliances on the distribution side of the rural power grid renovation.
      Zhang Xiaoqiang, Deputy Director of the National Development and Reform Commission, said, "According to the" Plan ", by 2015, strategic emerging industries will form a basic pattern of healthy development and coordinated promotion, and their role in promoting industrial structure upgrading will be significantly enhanced. The proportion of added value to GDP will strive to reach about 8%. By 2020, the proportion of added value of strategic emerging industries to GDP will strive to reach about 15%, and their ability to absorb and drive employment will significantly improve."
      Future Development Trends of Low Voltage Electrical Appliances Industry
      Advanced foreign low-voltage electrical manufacturers have successively launched a new generation of low-voltage electrical products from the end of the last century to the beginning of this century. This batch of products is supported by new technologies, materials, and processes, and has made significant breakthroughs in product performance, structure, miniaturization, characteristics, functions, and other aspects. Compared to others, the vast majority of enterprises in the low-voltage electrical industry do not yet have the ability to develop products with independent intellectual property rights. Therefore, industry enterprises need to focus on the development of low-voltage electrical research and development work from a single product to a systematic and networked development of product integration and overall system solutions; The new generation of low-voltage electrical appliances should not only innovate in their main body, but also have significant development in internal and external accessories, and tend to be coordinated and matched; While developing a new generation of high-end products, actively explore and vigorously develop a new generation of popular products.
       The new generation of intelligent low-voltage electrical appliances has significant characteristics such as high performance, multifunctionality, small size, high reliability, green environmental protection, energy conservation, and material conservation. Among them, the new generation of universal circuit breakers, molded case circuit breakers, and selective protection circuit breakers provide the foundation for China's low-voltage distribution system to achieve full range including terminal distribution systems and full current selective protection, which is of great significance for improving the reliability of low-voltage distribution system power supply and has a very broad development prospect in the mid to high end market. In addition, projects such as new generation contactors, new generation ATSE, and new generation SPD are also actively being developed, adding momentum to lead the industry in actively promoting independent innovation and accelerating the development of the low-voltage electrical industry. At the same time, we also see that low-voltage electrical products have shifted towards high-performance, high reliability, intelligence, modularity, and green environmental protection; In terms of manufacturing technology, we have begun to transform towards improving our professional craftsmanship level; In terms of parts processing, we have begun to transform towards high-speed, automation, and specialization; In terms of product appearance, it has begun to transform towards humanization and aesthetics.
       In 2011, the smart grid has entered the comprehensive implementation stage, with an estimated total investment scale of nearly 4 trillion yuan. All of these once again demonstrate the determination and will of the Chinese government to make rational use of resources, vigorously promote energy conservation and emission reduction, and actively develop a low-carbon economy. The smart grid has become one of the important industries for China to implement its energy development strategy, seize the opportunities of global industrial adjustment, and seize the commanding heights of a new round of development. At the same time, investment in power grid construction will also enter a period of rapid growth. The long-term development potential of the primary and secondary equipment sub industries is enormous, and there is huge imagination and market space for related equipment manufacturing, access and other technological products.
       With the proposal and development of smart grids, we are more aware that the development of low-voltage electrical appliances in the future should first consider from the perspective of system development. At the same time, it is necessary to consider the overall solution of the system, and from the system to all distribution, protection, and control components, from strong to weak electricity can be solved.
       According to preliminary estimates, from 2009 to 2015, the total investment in China's smart grid alone reached 2.5 trillion yuan, and rural power grid renovation mainly involves upgrading and replacing traditional power grid equipment. Therefore, about two-thirds of the investment in rural power grid renovation is in low-voltage distribution and transmission equipment, with an investment of over 200 billion yuan in the next three years. The low-voltage electrical industry in China is facing new and enormous opportunities.