Industrial power supply industry chain is more complete. Its upstream industry chain is semiconductor components, electronic components, permanent magnet materials, silicon steel sheets, electromagnetic copper wire, insulation materials, structural parts, plastic parts, cable and other raw materials; The middle reaches are industrial automation control system; Downstream for the equipment manufacturing market (such as textile machinery, machine tools, plastic machinery, rubber machinery, food machinery, packaging machinery, printing machinery, lifting machinery, HVAC, mining machinery, elevators, paper machinery, electronic manufacturing equipment, construction machinery, transportation vehicles, power equipment, medical equipment, wind power, etc.) and factory overall automation systems (such as petrochemical, chemical Industry, metallurgy, municipal, public facilities, oil and gas, building materials, mining, paper, electricity, automobiles, etc.).

1. Upstream

1. Electronic components

Electronic components are the basic components of various electronic machines, which determine the performance and quality of electronic machines. With the high integration of industrialization and information technology, the application of electronic components has penetrated into the entire industrial field, and is the basis and key to support the entire industrial innovation and development.

According to the “China Industrial power industry development status analysis and investment prospects Research Report (2022-2029)” released by the research Report network, in recent years, driven by the continuous development of mobile Internet technology, the improvement of consumer electronics manufacturing level and the increase in residents’ income level, the electronic components industry has shown a booming trend. And with the integration of emerging technologies such as 5G, the Internet of Things, artificial intelligence, virtual reality, and new displays with consumer electronic products, the development trend of contemporary and future electronic components is to high-frequency, chip, miniaturization, thin, low power consumption, fast response rate, modularity, and intelligence. At the same time, the safety and greening of products are also important factors affecting their development prospects and markets. At present, new electronic components mainly include sensors, chip components, optoelectronic devices and so on.

(1) Sensor

The sensor is a detection device that can feel the measured information, and can transform the felt information into an electrical signal or other required form of information output according to a certain law to meet the requirements of information transmission, processing, storage, display, recording and control. Data show that in 2019, China’s sensor market size of 218.9 billion yuan, an increase of 12.7%. It is estimated that the size of China’s sensor market will reach 295.3 billion yuan in 2021.

(2) Power electronic devices

Power electronic devices, also known as power semiconductor devices, are mainly used for high-power electronic devices in the power conversion and control circuits of power equipment. At present, the domestic power semiconductor industry chain is becoming more and more perfect, and technology is also making breakthroughs. At the same time, China is also the world’s largest consumer of power semiconductors, and the market demand for power semiconductors in China will reach 5.6 billion US dollars in 2020, accounting for about 39% of global demand. The power semiconductor market is estimated to be around $5.7 billion in 2021.

(3) optoelectronic devices

Optoelectronic devices are various functional devices made by using the electric-photon conversion effect. Depending on whether electrical support is required, optical devices can be divided into passive and active two categories. The active devices mainly include wavelength converters, optical amplifiers, lasers, etc. Passive devices are devices that need to consume a certain amount of energy in optical communication systems and have certain functions without photoelectric conversion, mainly composed of optical splitters, optical filters, optical splitters, etc. Data show that in 2020, the output of optoelectronic devices in China will reach 972.29 billion. From January to May 2021, the output of optoelectronic devices in China reached 475.57 billion, an increase of 43.8%.

2, silicon steel sheet

“Silicon steel sheet” is known as the handicraft of steel production. Since 2016, China’s silicon steel sheet industry market has shown an overall growth trend. Data show that in 2020, China’s silicon steel sheet production of 11.1811 million tons, an increase of 4.6%.

3, insulation materials

Insulating material, also known as dielectric, is a non-conductive material under allowed voltage, but not absolutely non-conductive material, under a certain external electric field strength, will also occur conduction, polarization, loss, breakdown and other processes, and long-term use will occur aging.

China is the largest electrical insulation material market, accounting for 45% of the market share. According to statistics, in 2018, the global insulation material market size was 8.56 billion US dollars, China’s insulation material market size was 25 billion yuan, it is estimated that in 2021, the global insulation material market size reached 10.2 billion US dollars, and the Chinese market reached 29.8 billion yuan.

4. Cable

Cable generally refers to cable, is a kind of power or signal transmission device, usually composed of several or several groups of wires. In recent years, the global wire and cable products have shifted to the Asia-Pacific region dominated by China, and the market size of China’s wire and cable industry has grown rapidly. With the acceleration of China’s power grid transformation, UHV projects have been put into construction, and the demand for wire and cable products in China has gradually expanded. Data show that in 2020, the sales revenue of China’s wire and cable industry gradually increased from 993.4 billion yuan in 2018 to 1076.9 billion yuan. It is expected that the sales revenue of China’s wire and cable industry will reach 1,164.3 billion yuan in 2022.

In terms of output, after two consecutive years of decline in 2017-2018, the total output of power cables in China began to pick up in 2019. In 2020, due to the impact of the epidemic, the growth rate of China’s wire and cable industry slowed down, and the overall scale reached 52.43 million kilometers, an increase of 1.98%. It is expected that the total output of power cables in China will reach 56.32 million kilometers in 2022.