The wire and cable industry is an important supporting industry for China's economic construction. At present, China's wire and cable industry has achieved an annual output value of over one trillion yuan, ranking first in the world in terms of industry scale production, and sales volume.

Despite the considerable market size, there are many players in the industry, the industry concentration is not high, and the market competition is fierce. The homogenization of cable products is serious, mostly dominated by low-end conventional cable products, and the convergence of technology selection is an important reason for the fierce competition in the industry. At the same time, the supply of high-end products is insufficient, the structural contradiction of products is prominent, and the special cable capacity with high technical content and high access qualification is lacking.

The transformation and upgrading of downstream industries promote the structural adjustment of the cable industry

In recent years, the state has also increased its investment in new infrastructure fields such as electricity, 5G, new energy, rail transit, UHV, etc., and the continuous advancement of industrial transformation and upgrading has put forward higher requirements for the application of wire and cable.

At present, with the development of new energy and the continuous adjustment and optimization of energy structure, energy consumption electrification is becoming a trend. In the industrial transformation brought about by this change, the wire and cable industry, called the "blood vessel" and "nerve" of the national economy, has attracted attention. In the context of the rapid development of emerging industries, the structural adjustment of China's wire and cable industry continues to deepen, the Matthew effect becomes more prominent, and the shuffle and integration of wire and cable enterprises accelerate, The above situation may usher in a change.

New energy vehicle cable has a broad prospect

As for new energy vehicles, under the industry trend of high performance, high efficiency, and high power density, the upgrading of the core component drive motor becomes a necessary condition, which also involves the updating and iteration of the cable used. The special performance required by the enameled wire for the drive motor of new energy vehicles determines the broad application prospect of flat wire motor in the field of new energy vehicles, and the flat wire motor is accelerating the replacement of round wire motor. For example, the flat wire leader JINBEI Electric (002533) achieved a record high sales volume of flat electromagnetic wire in 2022, which shows the industry heat.

Renewable energy special cable demand is strong

In addition to new energy vehicles, the development of renewable energy sources such as photovoltaic and wind power under the "dual carbon" goal also drives the demand for special cable products such as photovoltaic cable applied in high-tech fields.

The construction of new power systems is the trend of the times

In addition, the "Outline of the Fourteenth Five-Year Plan" proposes that in the next five years, while improving the utilization rate of UHV transmission channels, it will also lead to creating new demand with high-quality supply, which also brings new opportunities and challenges for the cable industry. Since this year, the construction tasks of new power systems such as UHV transmission channels have accelerated. Some analysts said that according to the previous "Fourteenth Five-Year Plan" route, the latest start date should not be later than the first half of 2024, and it is expected that UHV projects will be intensively approved and started in 2023.

Some professionals have pointed out that as the main unit carrying electric power energy, power cable will still play an important role in building a grid-based energy network and a new power system. Not only will it maintain a growth rate higher than GDP in terms of total amount, but it will also tilt towards high-end products in terms of technology, and industry development opportunities will emerge.