What is the Electrical Supply Industry and its Market Development?
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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: Mar 31, 2022 Source :read01, Source :read01

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