High voltage VFD (Variable-frequency Drive) price war will intensify

During the "Twelfth Five-Year Plan" period, Chinese investment in environmental protection will reach 3.1 trillion yuan. It is estimated that by 2015, the total output value of Chinese energy-saving and environmental protection industry will reach 5.3 trillion yuan, equivalent to 8% to 10% of GDP in the same period. High-voltage VFD (Variable-frequency Drive), as the main force and pioneer of energy saving and emission reduction, will have huge market demand in the future.

High-voltage VFD (Variable-frequency Drive) involves a wide range of fields, including electric power, metallurgy, coal, petrochemical and other industries, among which the proportion of electric power, metallurgy, cement and other industries is increasing year by year. In 2011, the oil and gas, mining, cement and petrochemical industries covered nearly 50% of the entire domestic high-voltage VFD (Variable-frequency Drive) market in China, among which the market size of the cement industry reached 1.201 billion yuan, the largest among the four industries market, accounting for 16% of the market.

Li Yin, chairman of Jiuzhou Electric, pointed out at the 2012 annual performance briefing that in 2012, due to the impact of the country's macro economy and intensified market competition, the price competition in the high-voltage VFD (Variable-frequency Drive) market became more and more intense, and the product production cycle The long period of time leads to slow repayment speed, and the capital occupation is getting bigger and bigger.

Therefore, the company seized the opportunity to sell the high-voltage VFD (Variable-frequency Drive) business to Rockwell, and obtained decades of benefits from high-voltage VFD (Variable-frequency Drive) at one time. Sufficient funds are provided for the company's future development.

Public data shows that Chinese high-voltage VFD (Variable-frequency Drive) market is rising rapidly. In 2005, the market size of high-voltage VFD (Variable-frequency Drive) was about 1.09 billion yuan, and in 2008 it had reached 3.4 billion yuan, with a compound growth rate of more than 40%. According to the "2009 China High-Voltage VFD (Variable-frequency Drive) Market Research Report", in 2012, Chinese high-voltage VFD (Variable-frequency Drive) market size will reach 15 billion yuan, and the market growth rate will remain in the next few years higher than 40%.

According to the survey of relevant institutions, the demand for high-voltage frequency conversion has picked up in 2013, but in the long run, the growth rate of the industry will drop to 10%: In 2012, due to Chinese domestic economic downturn, the main downstream application industries of high-voltage frequency conversion are difficult to make profits, and the high-voltage transformation market The demand slowed down, and the scale of new orders declined to a certain extent year-on-year. In 2013, with the weak recovery of the economy, the demand for high-voltage inverters will gradually pick up, and the growth rate of the industry is expected to recover to about 10%. In the long run, the main downstream industries of high-voltage frequency conversion, such as cement and electric power, have a high penetration rate. Compared with the past few years, the growth rate of future demand will inevitably decline; With the expansion of the market base and the completion of the transformation of the market, the growth rate of the industry will also remain stable. The compound growth rate of the industry in the next 35 years is estimated to be about 10%. However, for leading enterprises, due to the large number of high-voltage inverters sold, they will have an advantage in the demand for update and maintenance. At that time, the growth rate of leading enterprises is expected to surpass that of the industry.