What is the Electrical Supply Industry and its Market Development?
Market News

What is the Electrical Supply Industry and its Market Development?

Electricity is an important driving force for economic and social development and plays a vital role in the national economy. The equipment used in the electric supply industry is essential for maintaining the stable and reliable operation of the power system.
Published: Mar 31, 2022
What is the Electrical Supply Industry and its Market Development?

Definition and classification of electrical supply equipment

The electrical supply industry is an important industry that mainly includes power generation, transmission, distribution, conversion, and use of electric energy, electrical equipment, and various other special-purpose electrical products.  It includes equipment manufacturing and supporting industries. 

Taiwan's electrical supply industry analysis and market status

In recent years, the scale of Taiwan's electrical supply industry has continued to expand, and its strength has been significantly improved. The average annual growth rate of Taiwan's electrical supply industry has reached more than 25%. The quality of clean and high-efficiency power generation equipment and UHV, AC and DC power transmission and transformation equipment has also significantly improved. This indicates that in the future, the electric power industry will grow to meet the demands for electrical equipment.

The rapid development of emerging economies worldwide has brought about great changes in the demand for electrical supply products. Many of Taiwan's power generation equipment manufacturers have invested in and built factories in developing countries such as India. With the further development of the world's emerging economies, increased demand will provide broad development opportunities for Taiwan's electrical supply industry.

Industry overview of China's power equipment manufacturing industry

With China's economic reform and opening up, China has continuously increased investment in the power industry. The power equipment manufacturing industry has benefited a lot from these developments and has maintained rapid growth. In the future, major projects such as smart grid, rural grid transformation, and UHV, will bring new development opportunities in China's for the power equipment manufacturing industry. In response to the "Made in China 2025" initiative, China's domestic commercial banks have increased their support for the power equipment manufacturing industry. Banks have customized their services to fully grasp the structural opportunities brought about by the upgrading and transformation of the power equipment manufacturing industry, and have focused on risk prevention.

Power equipment manufacturing industry characteristics:

The manufacturing of power generation equipment and power transmission and transformation equipment are the two main pillars of the power equipment manufacturing industry. Products are used for the production, conversion, transmission, and distribution of electrical energy, as well as for processes used in the utilization of electrical energy.

  1. Occupy an important position in the national economy:
    The power equipment manufacturing industry is important to the national economy. It is one of the dominant industries and occupies a large portion of the national economy. Electrical equipment is high-end and its development has the potential to improve labor productivity.
  2. High periodicity:
    The power equipment manufacturing industry provides a variety of electrical equipment required for the national economy, national defense, and people's everyday lives. The prosperity of the industry is highly correlated with the general economy. Economic cycles significantly impact the expansion or reduction of production.
  3. High barriers to entry in the industry:
     As countries advocate the upgrading of equipment to meet increasing requirements for energy conservation and environmental protection, production barriers for power equipment manufacturing are also rising. The manufacturing industry is typically a capital-intensive industry, involving multi-disciplinary and multi-field technologies, including electrical, mechanical, heat treatment, and manufacturing, so the capital barrier for developing and producing new equipment is high.
  4. Intense competition:
    Because China's power manufacturing industry is largely geared toward the large production of low-end products, it is weak in innovation capabilities and depends highly on foreign technology. SMEs account for 35.71% of the industry as a whole, medium-sized enterprises accounted for 28.60%, and large enterprises accounted for 35.69% of the industry. Market competition is relatively fierce. 

Future development:

An intelligent distribution network for the power grid will be important for future development. Intelligent transmission and distribution equipment will improve the efficient utilization of electric energy by reducing the loss of electric energy during transmission and distribution. With today's increasing focus on energy conservation and environmental protection, market demand for intelligent power transmission and distribution will expand. The industry has been guided by policies such as national power, new energy, energy conservation, emission reduction, and emerging industry planning. Enterprises in the industry can obtain government support funds and tax incentives which can help the industry as a whole to accelerate development.

Intelligent power transmission and distribution is a comprehensive industry covering communication, materials, electricity, computers, and other fields. The intelligent power transmission and distribution industry requires highly interdisciplinary talents. While professional knowledge and engineering skills in electric power, IT, etc. are important, the mastering of project management skills is also necessary. Although progress has been made, technology and talent training are still bottlenecks of the intelligent power transmission and distribution industry.


Published by Mar 31, 2022 Source :read01, Source :read01

Further reading

You might also be interested in ...

Headline
Market News
The Quiet Secret of Electric Vehicles: Why No Gearbox Makes Driving Smoother
When you drive an electric vehicle, the first thing that might surprise you is the astonishing quietness and linear acceleration. There’s no gear-shifting jolt, no roar of a traditional engine—just a seamless connection between you and the car. Yet you might wonder: without a gearbox, how does an electric vehicle transmit power to the wheels? This is one of the key breakthroughs in EV design, simplifying the structure while redefining what “smooth” and “efficient” driving really feels like.
Headline
Market News
From Field to Fashion: How Cotton Price Fluctuations Affect the Textile Industry
Cotton is one of the most important natural fibers in the world, used in everything from T-shirts and jeans to bed sheets and duvet covers. For the textile industry, cotton is like a key ingredient in a restaurant kitchen—its cost accounts for a significant portion of production, and its quality and price directly impact the final product. In recent years, fluctuations in cotton prices have forced textile and apparel manufacturers worldwide to closely monitor the market, as even small price changes can affect annual profits.
Headline
Market News
AI Pharmaceutical Market Expands Rapidly|Enhancing Drug R&D Efficiency and Investment Opportunities
From the inception of a new drug to its market launch, the process demands astronomical investments, prolonged development timelines, and faces countless risks at every stage. For decades, pharmaceutical companies have struggled along this arduous path, with many promising drugs failing to reach patients. However, the rise of artificial intelligence (AI) is ushering in a transformative era, disrupting traditional drug development paradigms. AI not only streamlines R&D workflows but also reshapes the global landscape of capital and innovation competition.
Headline
Market News
Edge AI Injects New Advantages into European and American Manufacturing
When traditional manufacturing equipment transforms from cold mechanical tools into “real-time smart devices,” Edge AI is quietly sparking an industrial revolution. Without relying on distant cloud computing, this breakthrough technology enables machines to instantly detect anomalies and respond in real time, greatly boosting factory operation speed while achieving unprecedented stability and safety. As the global market experiences explosive growth, leading companies in Europe and the US are racing to enter the field, with Edge AI accelerating the manufacturing industry toward a new era of “smart real-time” operations!
Headline
Market News
Micromanufacturing Equipment: A New Opportunity for Precision Manufacturing
The manufacturing revolution in the micro world is quietly sweeping across the globe! As the medical, electronics, and automotive industries rapidly increase their demand for high-precision micro components, the global micromanufacturing equipment market is experiencing unprecedented growth. From implantable medical devices to smart car sensors, these precision tools not only drive technological innovation but have also become key investment targets for major international corporations and governments. With the support of intelligent and automated technologies, the future of micromanufacturing will be faster and smarter, propelling the global manufacturing industry to new heights!
Headline
Market News
Global Machine Tool Green Revolution Initiated: Who Will Lead the Future Market?
The global manufacturing industry is facing an unprecedented green revolution, and the machine tool industry is at its epicenter. With the phased implementation of the EU's Carbon Border Adjustment Mechanism (CBAM) and strict Eco-design directives, carbon emission thresholds for mechanical equipment have become mandatory. This isn't just a rule for the European market; Asia and the U.S. are also tightening their energy-saving requirements, forcing global machine tool manufacturers to completely restructure their products and processes. Companies that fail to comply with the new green standards may be excluded from international supply chains. A new green competition, which will determine corporate survival and future market position, has begun.
Headline
Market News
LLM Factory Smart Assistant: “AI as the Intelligent Navigator of the Factory”
Modern smart factories often face challenges with scattered data and information silos. Although sensors, SCADA, MES, and other systems continuously generate vast amounts of data, the lack of integration makes it difficult to quickly identify the root causes of anomalies. Large language models (LLMs) are emerging as a key solution by enabling cross-system data retrieval and analysis through natural language queries. Acting as “semantic coordinators” within multi-agent manufacturing systems, LLMs can dynamically adjust production schedules and resource allocation in real time. The article references examples from Microsoft Azure AI, AWS, Schaeffler, and Siemens to demonstrate how LLMs help reduce downtime, increase transparency, and improve decision-making efficiency. Finally, it highlights that as LLMs integrate with automation and visualization technologies, manufacturing will enter the “semantic era,” where operators can access production line insights conversationally and instantly, driving smart manufacturing toward greater flexibility and intelligence.
Headline
Market News
How Taiwan’s Machine Tool Industry Is Responding to Rising U.S. Tariffs and Market Uncertainty
This article discusses the impact of the U.S. increasing tariffs on Taiwanese machine tools, raising the rate from the original 4.4% to 20%. This sharp hike has significantly weakened Taiwan’s competitiveness in the U.S. market, with small and medium-sized enterprises (SMEs) being particularly hard-hit. In response, the industry has called for relaxed subsidy requirements and efforts to expand into new markets. Meanwhile, the government has introduced relief programs to help businesses reduce their dependence on the U.S. Despite the challenges, industrial transformation and close cooperation with the government remain key to moving forward.
Headline
Market News
The Talent Crunch Strikes! How Taiwan’s Machine Tool Industry Can Solve the Succession Crisis
Taiwan’s machine tool industry holds a crucial position in the global precision manufacturing supply chain. However, a silent "talent crunch" and "knowledge succession crisis" are now threatening its future. With the acceleration of smart manufacturing, AI, and automation, the industry's demand for high-end, cross-disciplinary talent—skilled in electrical control, software integration, and AI applications—has surged. Yet, the market supply is severely insufficient, hindering the industry's digital transformation and upgrade. Industry observers warn that if this gap continues to widen, Taiwan's international competitiveness in the machine tool sector could face significant challenges within the next five to ten years.
Headline
Market News
How Advances in Recycling Technology Impact Global Plastic Prices and Supply Chains
With plastic pollution becoming a central environmental concern, technological progress in recycling has emerged as a significant factor in shaping global plastic prices and the configuration of supply chains. In 2025, the evolution of chemical, mechanical, and digital recycling methods, alongside regulatory and market shifts, now interact in complex ways to influence the entire plastic value chain.
Headline
Market News
Laser Levelers: Precision Tools Driving Smart Construction
In the preparation of floors and foundations - where even minor deviations can have major consequences for machinery calibration, safety, or structural longevity - laser levelers have largely replaced traditional manual leveling methods, offering automation, speed, and pinpoint accuracy. Laser levelers - often referred to simply as laser levels - have become essential in a wide range of industries, from civil engineering and infrastructure projects to interior remodeling, equipment installation, and high-tech manufacturing.
Headline
Market News
Automated Food Manufacturing
The food processing industry is embracing automation and AI to boost efficiency, reduce errors, and ensure food safety. From material handling to packaging, smart systems enable stable operations, real-time monitoring, and data traceability—key to meeting market demands and securing global certifications. As more companies adopt AI and visual inspection technologies, the industry is entering a new era of data-driven, ESG-focused transformation.
Agree