Chinese market demand is increasing rapidly VFD (Variable-frequency Drive) has entered a period of rapid growthse

VFD (Variable-frequency Drive) is mainly used in industries such as textiles, printing, elevators, machine tools and production lines, and its application is for the purpose of energy saving. Widespread application of VFD (Variable-frequency Drive) will help reduce energy consumption and cost for enterprises. The VFD (Variable-frequency Drive) industry, due to its strong performance growth in the first half of the year, is still optimistic in the second half of the year and has attracted intensive attention from institutions.

Chinese VFD (Variable-frequency Drive) market is currently in a period of rapid growth, and it is widely used in textile machinery, air conditioners, elevators, metallurgy and other industries. In the past few years, Chinese VFD (Variable-frequency Drive) market has maintained a high growth rate. According to estimates, according to the demand of the Chinese market, it will take at least 10 years for the market to become saturated and gradually mature. Therefore, Chinese VFD (Variable-frequency Drive) market has a broad space for development. From the perspective of market structure, the market share of domestic brands in the Chinese market only accounts for 20% to 25%. Although Chinese domestic VFD (Variable-frequency Drive) has INVT, Inovance Technology, etc., there is still a big gap compared with foreign well-known brands, and there is a huge room for import substitution of Chinese domestic brands.

The demand for VFD (Variable-frequency Drive) in industrial automation is increasing

With the continuous improvement of automation level, various industries have higher and higher requirements for high precision, high efficiency and high speed of production equipment. VFD (Variable-frequency Drive) products themselves also need to make higher standards for their own control accuracy, efficiency, volume, and environmental tolerance according to market changes. Customers continue to put forward higher requirements for the reliability and price of VFD (Variable-frequency Drive) and the adaptability to the production process.

As the Chinese state pays more attention to air quality, it is believed that the environmental protection industry will also have a large demand for new equipment and renovation of old equipment. Chinese national policy support for new energy and new energy automobile industry and high-end equipment manufacturing industry will also bring immeasurable demand for VFD (Variable-frequency Drive) (inverter).

Although Chinese domestic brands have been catching up quickly by taking advantage of localization advantages in recent years, overall, the strength of Chinese VFD (Variable-frequency Drive) supporting industry is still relatively weak. There is a certain gap between Chinese domestic brands and foreign brands in terms of technology, processing and manufacturing, industrial design, etc., or in terms of financial strength.

However, judging from the growth of companies in the industry, they all achieved good growth in the first half of the year. Some analysts pointed out that since the first half of the year, Chinese macro economy has tended to be weak. Despite this, judging from the recent semi-annual reports disclosed by listed companies in the industry, the actual prosperity of the market development has exceeded market expectations. Taking the VFD (Variable-frequency Drive) industry as an example, listed companies such as INVT and Inovance Technology have disclosed their semi-annual reports in August, and both Inovt Technology and INVT Technology have achieved relatively high net profit growth. The rapid growth of companies in the VFD (Variable-frequency Drive) field against the trend in an environment of economic slowdown has aroused the intensive attention of institutions on related companies.

Energy-saving policy brings huge VFD (Variable-frequency Drive) market

According to the interim reports released by several Chinese domestic VFD (Variable-frequency Drive) markets, VFD (Variable-frequency Drive) sales did not have much bright spots in the first half of this year. However, as China increases investment in smart and energy-saving construction, the VFD (Variable-frequency Drive) industry still contains a large market opportunity after all, and enterprises should continue to develop related industrial markets.

Due to the increasing pressure of environmental protection, China is using various means to achieve energy conservation and emission reduction, forcing us to increase investment in environmental protection. Driven by the general environment, the market and technology development are expanding rapidly. At the technical level, it controls the speed regulation function of VFD (Variable-frequency Drive) products, so that it has quite good energy-saving efficiency.

Since the "Twelfth Five-Year Plan", energy conservation and environmental protection have become the core value of Chinese industrial economic development. Chinese domestic VFD (Variable-frequency Drive) has effectively stimulated Chinese VFD (Variable-frequency Drive) while pointing out the direction for the sustainable development of Chinese industry. The sustainable development of the industry has enabled Chinese VFD (Variable-frequency Drive) industry to continuously expand the market share of the industry, and has become an important basis for Chinese industrial economic development with its strong development force.

VFD (Variable-frequency Drive) has functions such as speed regulation, and has certain advantages in the field of energy saving. According to calculations, the power saving rate of motor systems using VFD (Variable-frequency Drive) can generally reach about 30%, and in some cases it can reach 40%-60%. At present, the growth rate of VFD (Variable-frequency Drive) installed capacity in the Chinese market is about 20%, and the potential market space is about 120 billion to 180 billion yuan. Among them, low-voltage VFD (Variable-frequency Drive) accounts for about 60% of the market share, and the remaining 40% is occupied by medium and high-voltage VFD (Variable-frequency Drive). At present, foreign brands occupy about 70% of the VFD (Variable-frequency Drive) market in China. However, the market share of local brands is expanding, from 15% in 2005 to about 30% in 2012.

As Chinese domestic VFD (Variable-frequency Drive) enterprise technology gradually improves, the market competitiveness of local products will gradually increase. At present, Chinese domestic VFD (Variable-frequency Drive) has occupied a certain market share in some mid-to-high-end markets such as oil field drilling and production, rail transit, home appliances and energy. At the same time, under the general direction of energy conservation and emission reduction, the downstream traditional power, metallurgy, cement, petrochemical and other high-energy-consuming industries are the focus of energy conservation and emission reduction, and the market space for high-voltage VFD (Variable-frequency Drive) may expand.

Chinese domestic VFD (Variable-frequency Drive) has become a trend to replace imports

According to a power plant denitrification report by Chen Qiuquan, supervisor of Hiconics Inverter, in 2012 Chinese VFD (Variable-frequency Drive) market share, Siemens, Schneider Electric, ABB, Dongfang Hitachi and other foreign brands still accounted for more than 2/3. Whether in terms of technology, manufacturing, industrial design, etc., or in terms of financial strength, there is a gap between Chinese domestic VFD (Variable-frequency Drive) brand and foreign brands, especially compared with the two giants Siemens and ABB.

At present, the market share of foreign-funded brands in Chinese domestic medium and low-voltage VFD (Variable-frequency Drive) market is basically the same as that in 2007, still at about 76%. industry) and other factors, the industry concentration of the top ten foreign-funded enterprises has increased, especially the share of industry-leading brands has further expanded.

Market indications show that with the maturity of localized production, scale and technology, Chinese domestic brands usually have a price advantage, and the improvement of quality also makes Chinese domestic VFD (Variable-frequency Drive) more cost-effective, and the market demand will increase. More and more inclination to the Chinese domestic market will eventually break the long-term monopoly of foreign VFD (Variable-frequency Drive), and at the same time, Chinese domestic manufacturers will also form well-known brands.

Demand for VFD (Variable-frequency Drive) surges in China, and environmental protection is popular in the market

Because VFD (Variable-frequency Drive) has functions such as speed regulation, it has certain advantages in the field of energy saving. According to calculations, the power saving rate of the motor system using VFD (Variable-frequency Drive) is generally about 30%, and in some higher occasions it can reach 40% to 60%, and the energy saving effect is remarkable. Various machinery industries, etc. have continuously increased requirements for energy conservation and environmental protection, and the VFD (Variable-frequency Drive) industry with energy-saving effects is popular in the market relying on green environmental protection.

Behind the huge market demand, Chinese VFD (Variable-frequency Drive) industrial capacity and