Wire and cable are the basic products used to transmit transmission(magnetic) energy, transmit information, realize electromagnetic energy conversion and constitute automated control lines. There is no strict difference between wires and cables. Generalized wire and cable can also be called cable. Products with simple structure and no outer sheath are usually referred to as wires, and products with complex structures, strong sealed outer sheath, and larger outer diameter are called cables. The main structure of the wire is "conductor + insulation", and the main structure of the cable is "conductor + insulation + sheath"; Conductors are generally made of copper, aluminum or its alloys, and insulation and protective covers are generally made of rubber, polyethylene, polyvinyl chloride and other materials.

Wire and cable widely used, variety, variety miscellaneous. There are more than 2,000 types of wires and cables and hundreds of thousands of specifications. It is one of the largest varieties and categories of products in the electrical and electronic industry.

Analysis on Sales Income and Market Scale of Chinese Cable Industry

According to the data, in 2012, the sales revenue of the cable industry in China reached 1,145.896 billion yuan, and the industry scale reached 107.149 billion yuan. By 2016, the sales revenue of China's wire and cable industry had reached 1,260.37 billion yuan, and the industry scale had reached 1,154.742 billion yuan. In 2017, China's cable and cable industry's sales revenue reached 134.344 billion yuan, and its industry size reached 12.27435 trillion yuan, an increase of 6.30 % over the same period in 2016.

Industry competition pattern

From the view of the industry as a whole, the products of Chinese enterprises are mainly concentrated in the low-end market, and the market competition is increasingly fierce. At the same time, the concentration of the wire and cable industry in China is extremely low, and small and medium-sized enterprises account for more than 95 %. Our top 10 companies account for only 7 % to 10 % of the domestic market share, which is much lower than the 70 % in the United States.

At present, there are many enterprises in the wire and cable industry in China, and the market concentration of low-end wire and cable products is low and the competition is fierce. Some small and medium-sized enterprises are seriously homogenized due to weak technological power, insufficient independent innovation capabilities, oversupply of products, and serious homogeneity. The result is that the overall product quality of the industry is uneven and the brand reputation is difficult to establish;

The high-end product market represented by advanced home appliance wiring components that introduce concepts such as safety, environmental protection, and energy conservation, and special wires and cables for special equipment and machinery are characterized by high technical content, strong customer targeting, and high qualification thresholds. The number of enterprises that have the strength to participate in competition is relatively small, product demand is greater than supply, and some special products are still dependent on foreign imports. The competition method has gradually shifted from price competition to brand competition.

In recent years, due to the rapid development of China's economy and the strong market demand, the world's top wire and cable companies, including Italy's Purisman, France's Nevsun, and Japan's Sumitomo, have established joint ventures and sole proprietorships in China. In the field of investment, we choose high-tech products with high added value.

With the foreign capital entering the Chinese wire and cable industry one after another, to a certain extent, it has eased the predicament of domestic high-end products in short supply; At the same time, under the guidance of the National industrial policy, the domestic wire and cable industry has also emerged a number of companies with certain R&D capabilities and brand awareness to actively explore overseas markets through industrial integration and technological innovation.

Export of Chinese wires and cables

China's exports of wires and cables totaled 530,000 tons in the first quarter of 2018, up 3.9 percent from a year earlier, according to data from the forward-looking industry research institute. From 2013 to 2017, the export volume of electric wires and cables in China has been increasing continuously for five years, with an annual compound growth rate of 5.44 %.

In terms of export volume, China's export of wires and cables from January to March 2018 reached 4.693 billion U.S. dollars, an increase of 4.4 % year-on-year. From 2013 to 2017, China's exports of electric wires and cables basically maintained a steady trend of growth, with a five-year average compound growth rate of 1.56 %.

Analysis on Sales Income Forecast of Wire and Cable Industry

In 2016, China's cable and cable industry's sales revenue reached 1.26 trillion yuan, and by 2017 it will reach 1.34 trillion yuan. China's cable industry is expected to generate 1.41 trillion yuan in sales revenue by 2018, with an annual compound growth rate of 5.09 % over the next five years(2018-2022) and 1.72 trillion yuan in 2022.

Large international companies occupy the high-end market

At present, the first echelon of China's wire and cable industry products is almost monopolized by foreign giants and their joint ventures established in China. Nexen, Puruisiman, Sumitomo, Furukawa and other international cable giants rely on their advanced production technology and equipment, strong research and development strength, long-term occupy the high voltage and ultra-high voltage cable market

The construction of intelligent power grid will provide broad market demand for cable industry