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Intense competition in the low voltage contactor market
Source: Nihone Electronics     Release Time:2019-01-28     Reads: 3311Times
In the industry of electrical development, low-voltage contactors have become very mature as traditional low-voltage electrical products. Adequate market demand has spawned a large number of low-voltage contactor manufacturers. Enterprises wanting to enter the low-voltage contactor market and benefit from it, need to have a full understanding of the current mainland low-voltage contactor market, including the main aspects.
 
Low-voltage contactors are very mature as traditional low-voltage electrical products. The manufacturing process of the low-voltage contactor product itself is not complicated, the technical content is relatively low, and sufficient market demand has spawned a large number of low-voltage contactor manufacturers; and the low-voltage contactor with different load currents also shows the price. The big difference is that the price covers the range from ten yuan to several thousand yuan. Enterprises wanting to enter the low-voltage contactor market and benefit from it, need to have a full understanding of the current mainland low-voltage contactor market, including major application industries, industrial chains of various industries, potential industries.

According to the new investigation report of Beijing JF United Consulting Co., Ltd. (JFUnited), "2008 China Low Voltage Contactor Market Survey Report" shows: lower entry threshold, lower brand concentration, strong market demand, good market The prospect is a positive factor in investing in the low-voltage contactor market; and with the increasingly fierce competition in the industry, product homogeneity and narrow profit margins are also important factors that investors have to consider.

In this report, JF jointly researched the main sub-application market of low-voltage contactors such as electric power, machinery, petrochemical, metallurgy and rail transit, and made corresponding analysis on the industrial chain of each sub-application market, and from the market. Concentration and price competition pattern pointed out the current competition situation of the above market segments. At the same time, the report also made targeted analysis on brands, channels, logistics and key market segments for different market share.

According to the JFUnited survey report, the market for low-voltage contactors in mainland China reached 4.76 billion yuan in 2007, and maintained a relatively good growth momentum in the next few years. The main applications of low-voltage contactors are concentrated in the two major fields of machinery and power, accounting for 72.5% of total sales; and these two industries have maintained rapid growth, so they have a good position in the power and machinery fields. Resources are the work that major companies pay more attention to.

The market concentration of low-voltage contactors is not high, especially in the low-end products market. . Schneider currently has a large market share (about 10%) in the mainland low-voltage contactor market, while other companies have a market share of less than 7%. The top 5 companies accounted for only 35.1% of the total market capacity, and the remaining 64.9% were shared by many low-voltage contactor manufacturers.
  
At present, a large part of the mainland low-voltage contactors are purchased by low-voltage complete equipment manufacturers, and these companies are more sensitive to price. Therefore, the price of the mainland low-voltage contactor market is generally low. At present, the mid-to-high-end market of low-voltage contactors in mainland China is basically occupied by foreign brands. The products of most enterprises in mainland China are positioned in the low-end market and the competition is fierce. However, the intensification of overall market competition does not obscure the increase in revenue generated by good growth in certain market segments. The subdivision application industry of low-voltage contactors is mainly in the traditional industry, and the development of these industries is the prerequisite for the development of the low-voltage contactor market. The low-voltage contactor market is greatly affected by the development of demand industries.
  
In the report, JFUnited conducted an in-depth analysis of the overall market for low-voltage contactor products and the supply and demand of major sub-application markets. The rapid growth of power generation capacity, the substantial increase in the output of mechanical products, and the growth of petrochemical and metallurgical investment all have an impact on the future growth rate of low-voltage contactors. From the subdivision application market, the power, machinery, petrochemical, metallurgical, rail transit and other fields have shown different procurement characteristics, which is what low-pressure contactor manufacturers must seize in order to stand firm in competition and increase market share. The focus is also on the new enterprise.

Nowadays, low-voltage contactor products are very mature. At present, most of the major enterprises in the low-voltage contactor market were established in the 1990s or entered mainland China, and they occupy most of the market share. These enterprises have strong strength. However, this does not mean that there is no chance of survival when entering a new enterprise. In the surveyed enterprises, there are still enterprises that have entered the market and achieved good performance in recent years; these enterprises have discovered and seized the potential demand of the low-voltage contactor market. And succeeded. At present, low-voltage contactor products are not very different, and most manufacturers' products can be replaced with each other. Therefore, grasping the demand of sub-application industries is an important way for enterprises to expand market share.

The fierce competition in the low-voltage contactor market can also drive the overall development of the entire market and enable the electrical industry to develop faster.
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