As a basic component of industrial systems, cables are widely used, and therefore, with the rapid development of China's economy, the cable market outlook is very promising. In the next few years, some cable markets will achieve significant development, and some cable products will welcome vast market demand.

The usage of overhead lines will significantly increase

Currently, with the gradual realization of inter-provincial networking in northern, central, and southern China and the nationwide grid, the extensive application of ultra-high voltage, large-capacity overhead lines (750KV lines in the Northwest, 500KV lines in other regions) will lead to a 10% month-on-month growth in overhead lines. In addition, the demand for medium-voltage 10-35KV cable products will also significantly increase, or grow at a month-on-month rate of 8-10%. Currently, the adoption of dual-ring network power supply in large cities and the increased underground cabling rate in urban centers will greatly boost the usage of medium-voltage cables. Most city planning departments now emphasize underground cable power supply in urban areas, and some cities have incorporated this requirement into local regulations, which brings significant opportunities for medium-voltage distribution cables.

The output value of building wiring will exceed 15%

In recent years, despite the cooling of the real estate industry, the construction industry, as an important industry in the 21st century, will bring opportunities for building wires and other electrical equipment cables. Whether it's residential buildings, office buildings, or commercial centers, a large number of various cable products will be used. At the same time, with consumers' increasing demands for living conditions, the demand for smart homes, coupled with the construction of various professional networks, will bring a huge market to wires and cables. It is expected that the output value of building wiring will exceed 15% in the wire and cable industry in the future.

The market for wires and cables used in new energy should not be underestimated

With the rapid development of the new energy industry, the market for new energy cable products should also not be underestimated. Taking nuclear power as an example, in the coming years, the new energy industry will receive increasing government support. Technological advancements will continuously reduce the cost of new energy usage, and its economic value and social environmental benefits will become increasingly prominent. In the past year, the new energy sector has significantly outperformed the broader Shanghai and Shenzhen stock markets, and we are optimistic about the long-term investment value of the new energy sector, maintaining a "recommend" investment rating. For instance, new energy vehicles, as an important measure for air pollution control in China, will continue to receive strong policy support and have good development prospects. Currently, the number of charging piles in China is far from meeting the needs of electric vehicle development; "difficulty in charging" is the biggest bottleneck for electric vehicles in China. Policies encouraging charging pile construction will be accelerated. Tesla's public patents contribute to the development of the new energy vehicle industry.

The solar photovoltaic cable market will also benefit

The solar photovoltaic industry has also attracted the attention of many investors. The development potential of the solar photovoltaic industry is infinite, and it will inject infinite power into the cable industry. The solar photovoltaic industry is seeing China transition from a major photovoltaic manufacturing country to a major photovoltaic installation country. Currently, domestic photovoltaic power station development mainly includes two types: ground-mounted power stations and distributed photovoltaic. For ground-mounted power stations, some industry experts believe the business model is mature and it is currently the most beneficial segment of the industrial chain.

Cables for automotive use will continue to grow

In addition, urban development will drive the development of urban rail transit, which will promote the application of various flame-retardant cables. Lighting cables for tunnels and subway stations are also a major highlight. Furthermore, with the rapid development of domestic enterprise industries, there will be faster growth in automotive wires and enameled wires. For example, wires used in the automotive and motorcycle industries mainly fall into two categories: enameled wires and automotive wires. The automotive industry has led to a significant increase in sales of enameled wires and automotive wires, and their demand is expected to continue to grow by about 10% in the next few years.

Nowadays, all industries are actively transforming and upgrading, and the cable industry is no exception. The combination of traditional industries and emerging network platforms is an excellent transformation strategy. It can not only significantly reduce enterprises' procurement costs but also facilitate their integration with international standards and reduce market barriers. Experts predict that for a long time to come, the combination of traditional industries and modern information technology will be a highly forward-looking choice.