Abstract:With the deepening of the reform of the economic system in the mainland, earth-shaking changes have taken place in all walks of life, and the electrical instrument industry has also achieved rapid development in the economic wave. According to statistics, in 2023, China's electrical instrumentation output will increase by 6.74% year-on-year to 275.636 million units. In the future, driven by the development of the downstream market, the demand for electrical instruments will continue to increase, and the output of electrical instruments will also continue to grow.
1. Definitions and Classification
Electrical instrumentation refers to the general instrument device that measures or verifies voltage, current, resistance or power, but does not include metering instruments in the process of generating or supplying electricity. Electrical instrumentation can be divided into indicating instrument and comparison instrument, wherein indicating instrument is also called direct reading instrument, in the process of electrical measurement, do not need the measuring instrument to directly participate in the work, can indicate the instrument of the measured value at any time;
Second, industry policies
In recent years, the Chinese government has introduced relevant policies to support the development of China's electrical instrumentation industry, support and encourage the research and development and application of China's electrical instrumentation equipment. In June 2023, the Ministry of Industry and Information Technology and other five departments issued the "Implementation Opinions on Improving the Reliability of the Manufacturing Industry", proposing to improve the accuracy and reliability of high-end instruments and equipment such as industrial control instruments, testing and analysis instruments, photoelectric detection instruments, and biomedical instruments. In December 2023, the General Office of the Chongqing Municipal People's Government issued the "Chongqing Inspection and Testing Service Industry Development Plan (2023-2027)", proposing that the inspection and testing industry should realize the transformation and upgrading of informatization, digitalization, intelligence and greening, and form a relatively complete inspection and testing regulations and standard system. With a vibrant business environment, it has basically built a highland of inspection and testing services in the central and western regions of the country.
Third, the development process
In the 50s of the 20th century, China's power industry was just starting, and the power equipment manufacturing industry was also in its infancy. At this stage, China's electrical instrumentation industry is mainly based on the introduction and imitation of foreign technology, and the quality and technical level of the instruments and equipment produced are relatively low. With the rapid development of the electric power industry and the country's support for the power equipment manufacturing industry, China's electrical instrumentation industry has gradually begun to move towards the track of development. In the 70s of the 20th century, China began to independently develop and produce electrical instruments and meters, and made some important breakthroughs. Entering the stage of integration and development, with the further development of China's power industry and the intensification of market competition, China's electrical instrumentation industry is also facing the pressure of industry integration and development. At this stage, China's electrical instrumentation industry began to march into the high-end market, and constantly launched high-tech products with independent intellectual property rights. With the deepening of global economic integration, China's electrical instrumentation industry is facing fierce competition from the international market. At this stage, China's electrical instrumentation industry actively participates in the development of the international market and has become an important participant and influencer in the international electrical instrumentation industry.
Fourth, industry barriers
1. Brand barriers
The establishment of a brand is the result of long-term accumulation. Different from ordinary commodities, the end users of electrical instruments and meters usually cannot judge the value of the products and services they provide before choosing an electrical instrument manufacturer, distributor, leasing or system integrator, and the uncertainty of the transaction is high. Therefore, customers tend to judge the quality and level of service by the credibility of the service provider, thereby reducing their transaction costs and risks. Therefore, a good brand and a high industry reputation have become one of the core competitiveness of electrical instrumentation service providers, which requires years of long-term accumulation of technology, knowledge and management experience.
2. Technical barriers
The electrical instrumentation industry is a technology-intensive industry, including electronics, precision machinery, computers, software, communications, optoelectronics, materials and other technologies, the product technology content is high, the production process is relatively complex, sensitive to high-tech response, rapid technological progress, the need for strong technical strength and technical reserves. At the same time, for system integration and general contracting services, more proprietary technical support is required. Enterprises that have newly entered the electrical instrumentation industry cannot accumulate relevant technical foundation in a short period of time.
3. Talent barriers
The electrical instrumentation industry needs a large number of different types of high-quality talents, including not only the product research and development team with solid professional knowledge, strong sense of innovation and strong teamwork ability, technical personnel and high-skilled technical workers who master complex production processes, sales engineers who are familiar with user needs and can provide solutions and technical services, but also high-quality management personnel with modern management awareness. Talent growth requires long-term training in practical work, and it is difficult for new enterprises to enter the electrical instrumentation industry to gather all kinds of required professionals in a short period of time.
4. Financial barriers
The sales, leasing and system integration business of electrical instruments and meters has very high capital requirements. In order to improve the speed of payment, financial strength is one of the main factors for electrical instrument manufacturers to choose distributors, distributors with strong financial strength are easier to become the main distributors of manufacturers; 。
Fifth, the industrial chain
1. Analysis of the industry chain
The upstream of the industrial chain of electrical instrumentation is the supply of raw materials, mainly for hardware, ABS resin, electronic components, sensors, liquid crystal displays, etc.; the middle of the industrial chain is the manufacture of electrical instruments and meters; the downstream of the industrial chain is mainly for the power industry, including electric energy collection and management, power quality and analysis, harmonic measurement, power-free measurement, compensation and automatic meter reading system and other application scenarios.
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