Industry Analysis: Low Pressure Contactor Market

In order to meet the needs of the development of industrial automation control systems and the competition in the international market, the contactor market is extremely fierce. Whether it is technological innovation or product replacement.

Low-voltage contactors have become very mature as traditional low-voltage electrical products. The manufacturing process of the low-voltage contactor product itself is not complicated, and the relatively low technical content, coupled with sufficient market demand, has spawned a large number of manufacturers of low-voltage contactors; and low-voltage contactors with different load currents also show a price The greater the difference, the price covers the range from a dozen to a few thousand dollars. Enterprises want to enter the low-voltage contactor market and benefit from it, need to have a fuller understanding of the current low-voltage contactor market in mainland China, including major application industries, industrial chains of various industries, potential industries and other aspects.

According to the latest survey report of Beijing JF United (JFUnited) “2008 China Low-Pressure Contactor Market Survey Report”: Lower entry barriers, lower brand concentration, strong market demand, and good market prospects It is an active factor to invest in the low-voltage contactor market. With the increasingly fierce competition in the industry, product homogeneity and narrow profit margins are also important factors that investors have to consider.

In the report, ZF researched the major button subdivided application markets such as electric power, machinery, petrochemicals, metallurgy, rail transit, etc., and analyzed the industrial chain of each subdivided application market and analyzed the market concentration. The competition pattern of price competition and other aspects pointed out the current competition status of the above segmented markets; at the same time, the report also made targeted analysis of brands with different market shares from brands, channels, logistics, and key market segments.

According to JFUnited's survey report, the low-voltage contactor market in mainland China reached 4.76 billion yuan in 2007 and will maintain a relatively good growth momentum in the coming years. The main application of low-voltage contactors is currently concentrated in the two major areas of machinery and power, accounting for approximately 72.5% of total sales; and these two industries have also maintained a relatively rapid growth momentum, and therefore have a better position in the field of electricity and machinery. Resources are the work that every major company pays more attention to.

The market concentration of low-voltage contactors is not high, especially in the low-end product market. . Schneider currently has a large market share in the mainland low-voltage contactor market (about 10%), while other companies' market share is below 7%. The top five companies accounted for only 35.1% of the total market capacity, while the remaining 64.9% were shared by numerous low-voltage contactor manufacturers.

At present, a large part of the low-voltage contactors in the mainland are purchased by low-voltage equipment manufacturers, and these enterprises are relatively price-sensitive. Therefore, the prices of the mainland low-voltage contactor market are generally low. At present, the mid-to-high-end market for low-voltage contactors on the mainland is basically occupied by foreign brands, and the products of most companies in the mainland are located in the low-end market and the competition is fierce. However, the intensification of the overall market competition cannot hide the increase in the profits generated by the good growth of certain market segments. The subdivision application of low-voltage contactors is mainly in the traditional industries. The development of these industries is the prerequisite for the development of the low-voltage contactor market. The low pressure contactor market is greatly influenced by the development of the demanding industry.

In the report, JFUnited made an in-depth analysis of the supply and demand situation of the low-voltage contactor products in the overall market and major market segments. The rapid growth in power generation capacity, the significant increase in the output of machinery products, and the growth in petrochemical and metallurgical investment have affected the future growth rate of low-voltage contactors. From the subdivided application market, electric power, machinery, petrochemicals, metallurgy, rail transit and other fields have shown different purchasing characteristics. This is precisely what low-voltage contactor manufacturers need to grasp in the competition and increase their market share. The key point is also the new business must master.

Now, low-voltage contactor products are already very mature. Most of the major companies in the low-voltage contactor market were established or entered mainland China in the 1990s and occupied most of the market share. These companies have strong capabilities. However, this does not mean that there will be no chance of survival for new companies. In the surveyed companies, there are still companies that have entered the market in recent years and have achieved good results; these companies have discovered and seized the potential demand of the low-voltage contactor market. And to be successful. At present, low-voltage contactor products have little difference, and most manufacturers' products can be replaced with each other. Therefore, seizing the needs of subdivided application industries is an important way for companies to expand market share.

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