Ten-year prospect of VFD (Variable-frequency Drive) enterprise's future development

Since the 21st century, Chinese VFD (Variable-frequency Drive) industry has been highly fragmented. Many foreign brands have set up factories in China and implemented localized operations. The personnel and funds of the original domestic brands have been continuously separated, and many enterprises have been established, mainly concentrated in coastal areas such as Guangdong, Zhejiang, Shandong, and Shanghai.

At present, there are more than 300 VFD (Variable-frequency Drive) manufacturers in Chinese domestic market, and the number of major brands remains at about 20 to 30. Foreign brands still dominate the medium-voltage VFD (Variable-frequency Drive) and low-voltage VFD (Variable-frequency Drive) markets in China. Most local companies in China have a short history of establishment, and many new products have entered the market for a short period of time. It is still difficult to compete with well-known international brands with a long history in terms of product maturity and brand awareness. Chinese domestic VFD (Variable-frequency Drive) market originated from the entry of foreign brands, and foreign brands are preconceived. The strength of Chinese VFD (Variable-frequency Drive) supporting industry is relatively weak, and there is a certain gap between Chinese domestic brands and foreign brands in terms of technology, processing and manufacturing, industrial design, and financial strength.

Foreign brands account for about 70% of the domestic VFD (Variable-frequency Drive) market in China. Local VFD (Variable-frequency Drive) companies mainly produce V/F control products. For products such as vector VFD (Variable-frequency Drive) with superior performance and high technical content, most domestic companies in China have not yet developed mature products.

It is understood that foreign brands still dominate the domestic medium-voltage VFD (Variable-frequency Drive) and low-voltage VFD (Variable-frequency Drive) markets in China. There are mainly ABB, Siemens, Fuji Electric, Mitsubishi Electric, Yaskawa Electric, Delta, Schneider, Emerson, Danfoss and other brands, occupying the top 12 in Chinese medium and low voltage VFD (Variable-frequency Drive) market. INVT, the largest in China, has already ranked 13th, and other companies are even smaller. Therefore, Chinese VFD (Variable-frequency Drive) market is still price-oriented, which may lead to differences between the VFD (Variable-frequency Drive) models promoted by many international brands in China and international ones, and also for local VFD (Variable-frequency Drive) models. -frequency Drive) brand development provides certain opportunities. With the rise of local brands, the market share of domestic VFD (Variable-frequency Drive) companies is gradually expanding, especially in recent years, there has been a tendency to accelerate the replacement of foreign brands. Although it does not yet have the strength to fully compete with top international brands such as Siemens and ABB, it has shown certain competitive advantages in some segmented products and markets, and its market share has gradually expanded. It is expected that the market share of Chinese domestic brands will exceed that of European and American brands in the next few years.

VFD (Variable-frequency Drive) market has unlimited prospects

With the development and comprehensive utilization of variable-frequency high-speed technology, the VFD (Variable-frequency Drive) industry has achieved unprecedented development in the modernization of cement, elevators, printing, electric power, etc., as well as in the fields of medicine, communication, traffic, transportation, electric power, electronics, and environmental protection. And applications, almost all walks of life in the national economy are inseparable from VFD (Variable-frequency Drive). On the whole, the competition in Chinese VFD (Variable-frequency Drive) industry is becoming increasingly fierce. Due to the attractiveness of the market, not only the market has formed a certain scale, but also the potential capacity is very considerable, constantly attracting new players in the industry. With the improvement of technology and quality stability of Chinese domestic manufacturers, coupled with advantages in service and price, it is expected that the market situation in which high-end products are monopolized by foreign manufacturers will change in the next few years.

Chinese VFD (Variable-frequency Drive) market has a broad space for development, currently reaching about 10 billion yuan. With the expansion of the market and the diversification of user needs, the functions of Chinese domestic VFD (Variable-frequency Drive) products are constantly improving and increasing, and the degree of integration and systematization is getting higher and higher, and some special VFD (Variable-frequency Drive) products have appeared. -frequency Drive) products. It is understood that in recent years, Chinese VFD (Variable-frequency Drive) market has maintained a growth rate of 12-15%, and it is expected to maintain a growth rate of more than 10% in at least the next five years. At present, the growth rate of VFD (Variable-frequency Drive) installed capacity (power) in the Chinese market is actually around 20%. It is estimated that the VFD (Variable-frequency Drive) market will be saturated and mature gradually after at least 10 years.