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Low-voltage electrical appliance industry transforms into a smart electrical industry
"According to Jeremy Rifkin in *The Third Industrial Revolution*, the convergence of internet technology and renewable energy is set to transform the world. This shift has already begun to significantly impact the low-voltage electrical industry, as both sectors continue to evolve rapidly.
From a macroeconomic perspective, China's smart grid and new energy initiatives are advancing quickly, with a growing emphasis on a low-carbon economy. As a result, the traditional low-voltage electrical industry is undergoing a transformation, moving toward a more intelligent and sustainable model.
Looking at the industry landscape, the power sector is expanding at a fast pace. By 2020, it is estimated that 2 trillion yuan will be invested in power generation, while 3–3.6 trillion yuan will go into power grid construction. Smart grids alone are expected to create over 1 trillion yuan in market demand for electrical equipment. Additionally, by 2020, the total installed power generation capacity is projected to reach 1.78 billion kilowatts, including 20 million kilowatts of solar power and 150 million kilowatts of wind power—creating significant opportunities for the low-voltage electrical appliance industry.
At the same time, China is shifting from being a manufacturing giant to a high-quality manufacturer. The trends of clustering, informatization, service-oriented development, and branding are placing higher demands on the low-voltage electrical industry.
According to data from the General Electric Appliance Association, in 2012, the sales revenue of China’s low-voltage electrical industry reached approximately 61 billion yuan, up 9.47% year-on-year. Total profit was 4.4 billion yuan, an increase of 7.32%. Imports rose slightly by 0.79%, reaching 2.6811 billion USD, while exports surged by 10.04% to 2.828 billion USD.
Key products saw strong growth: universal circuit breakers sold 900,000 units (up 9.76%), molded case circuit breakers (including leakage) reached 46.3 million units (up 10.56%), small circuit breakers (including leakage) hit 880 million units (up 9.84%), and AC contactors reached 105 million units (up 10.53%). Although slightly below the forecast of 109 million units, the overall trend aligned with initial projections.
From a macro and industry perspective, the outlook for China’s low-voltage electrical industry remains positive. Based on historical performance, forecasts suggest that universal circuit breaker sales could reach 1.33 million units and AC contactor sales 167 million units by 2015. The industry is expected to maintain high growth over the next five to ten years, with a compound annual growth rate of 10–15%.
Notably, the development of smart grids has opened new doors for the low-voltage electrical industry. The market share of mid-to-high-end products is expected to grow, along with increased demand for integrated systems and comprehensive solutions—offering a golden opportunity for rapid development.
In addition, under the backdrop of industrial restructuring, energy efficiency improvements, and the pursuit of a low-carbon economy, energy-saving, material-saving, and high-performance low-voltage electrical products are gaining traction, leading to stronger market demand and providing a rare chance for industry upgrading.
Finally, the rapid growth of new energy sources has created new opportunities for industrial expansion. Low-voltage electrical products are now extending into areas such as photovoltaic inverters, new energy control and protection systems, distributed energy, energy storage equipment, and DC switchgear, offering comprehensive solutions. These emerging fields represent a key growth area for the industry."