Distribution switch control equipment industry has broad prospects

At present, China's distribution switch control equipment industry is in an unprecedented boom. Since 2003, the compound annual growth rate of industry sales revenue has reached more than 25%, and the development momentum is rapid. With the continuous growth of power grid construction investment and the demand for railway electrification, the industry will usher in a broader market.

In recent years, the demand for the global power transmission and distribution equipment market has been on the rise. The construction of distribution networks is the focus of future power grid construction. According to the National Development and Reform Commission's "12th Five-Year Plan for the Electric Power Industry" and the 2020 Development Plan (Draft), it is estimated that the total power grid investment will reach 2.5 trillion yuan during the 12th Five-Year Plan period, and the average annual investment will exceed 500 billion Yuan. During the Tenth Five-Year Plan period, the average annual increase in the amount of power grid investment exceeds 90%, which will directly stimulate the market demand for distribution switchgear.

According to data from the “Analysis Report on Production and Sales Demand and Investment Forecast of China's Switchgear Control Equipment Manufacturing Industry in 2013-2017” published by the Industry Development Institute, the sales revenue of switchgear control equipment in China reached 467.49 billion yuan in 2012. The proportion of power grid investment has already been in 2005. 32.10% rose to 49.47% in 2012, and the investment ratio structure tends to be reasonable.

The industry research group of the Industry Research Institute of Forward-looking Industry Research Institute believes that such favorable factors as the upgrading of distribution networks and the improvement of rural power grids, as well as the electrification of railways and the construction of urban rail transit, will certainly further expand the market for distribution switch control equipment. Combining the country's macroeconomic situation and power investment demand in the next few years, it is estimated that by 2017, China's distribution switch control equipment sales revenue will reach 1.3 trillion yuan.