Analysis on market competition pattern and development trend of China's electric heater industry in 2021
China's electric heater industry concentration will gradually increase
At present, the profit level of electric heater industry in China's industrial field is relatively high, while the profit level of electric heater in civil field is relatively low. With the continuous expansion of the industry market scale and the increasing number of entering manufacturers, the market competition will become increasingly fierce. However, with the increase of market competition, enterprises that only rely on price as a means of competition will be gradually eliminated, enterprises with technology, brand and marketing advantages will be further developed, and the industry concentration will be gradually improved.
1. China's electric heater market competition intensifies
In terms of the number of competitors, with the vigorous implementation of a series of favorable policies of the state, it provides a good development environment for the electric heater market, which makes the relevant domestic enterprises layout the electric heater market one after another. As a result, the number of enterprises engaged in the electric heater related industry in China has reached more than 10000, which further intensifies the market competition of the domestic electric heater industry.
① Existing competitors in the industry: in terms of the number of competitors, with the vigorous implementation of some favorable policies of the state, a good development environment has been provided for the electric heater market, which has led to the layout of the electric heater market by relevant domestic enterprises. As a result, the number of enterprises engaged in electric heater related industries in China has reached more than 10000, Further intensified the domestic electric heater industry market competition.
② Bargaining power of industry suppliers: the upstream raw materials of electric heater industry mainly include stainless steel, hardware, plastic, etc. At present, China's raw material markets have basically realized marketization, and their price trend is basically consistent with that of the international market. The price is determined by the supply and demand of the whole market. The price of raw materials fluctuates with the market and is market-oriented. Generally speaking, the bargaining power of electric heater enterprises to upstream suppliers is weak.
③ Bargaining power of industry buyers: the downstream industry has a great traction and driving effect on the development of the electric heater industry, and their demand changes directly determine the future development of the electric heater industry. On the whole, in the civil field, the bargaining power of electric heater industry to downstream enterprises is weak; In the field of industry, there are few enterprises in the field of industrial electric heater. At present, Dongfang Electric Heating Co., Ltd. is the only domestic enterprise that has realized large-scale production and successfully used silicon tetrachloride cold hydrogenation treatment electric heater. Therefore, the electric heater industry has a certain bargaining power.
④ Potential entrant threat: the potential threat of electric heater industry mainly comes from new entrants and foreign-funded enterprises. New competitors usually have brand and technology advantages, especially foreign-funded enterprises, in addition to leading technology, they also have strong capital support, which have a greater threat to the current industry enterprises.
⑤ Threat of industry substitutes: electric heating is the induction heating method with the highest efficiency, fastest speed, low consumption, energy saving and environmental protection for metal heating. Compared with combustion heating, electric heating has many advantages, such as clean heating process, high thermal efficiency, safety, convenient adjustment of electric heating power, and no auxiliary facilities. At the same time, with the development of science and technology, the application scope of electric heater is also expanding. In recent years, graphene nano heating furnace, graphene electric heating film, thick film heating element, heat conduction oil furnace, gas mold temperature machine, electromagnetic heater, graphite electric heating material, far infrared radiation material, high frequency electric heating material, porous glassy carbon electric heating material PTC semiconductor electric heating materials and other core technologies have made continuous progress and breakthroughs
2. Brand concentration of China's electric heater industry improved
From the perspective of industry concentration, major electric heater manufacturers have formed long-term and stable cooperative relations with major household appliance manufacturers, so the competition pattern in the field of major civil electric heaters has been relatively stable. In addition, only a few domestic enterprises have high standard electric heater manufacturing capacity in the industrial field.
Statistics show that in 2018, the top five manufacturers in China's electric heater industry accounted for 37.5% of the market share, and the top ten manufacturers accounted for 42.9% of the market share, with moderate concentration. In 2019, the market concentration of the electric heater industry is on the rise, with the top five manufacturers accounting for 37.50% of the sales and the top ten manufacturers accounting for 45.18%.
3. China electric heater industry head brand advantage is obvious
The electric heater industry market has a super competitive situation. The electric heating leading enterprises represented by Dongfang Electric Heating Technology Co., Ltd. occupy a large share in the industry. Most of the rest are small and medium-sized electric heater enterprises that have not yet been listed. The head brand advantage of the electric heater industry is still obvious.
Dongfang Electric is the brand with the overall market share of more than 15% in 2019, but the following brands are gradually narrowing the gap with the head brands. In the field of civil electric heater, due to the influence of environmental protection policy, some small enterprises in the same industry were shut down.
At the same time, because the parts enterprises are in a weak position in the industrial chain, the whole machine manufacturers are in a strong position, and the suppliers of Gree, Midea and other downstream enterprises mainly purchase bills. Moreover, due to the tight capital chain of private enterprises as a whole, some small enterprises withdraw due to the capital chain problem, and the concentration of the electric heating element industry for home appliances is gradually increasing compared with a few years ago.
In the field of industrial electric heating, in the high-end market with more difficult technology and higher added value, a relatively stable competition pattern of five major international manufacturers has been formed. A large number of domestic industrial electric heater manufacturers are mainly in the low-end market with low added value.
China's electric heater industry is a fully competitive industry with many enterprises and fierce competition. With the further development of the industry's dominant enterprises and the continuous enhancement of brand strength, it is inevitable that the market share will be concentrated to the dominant enterprises. In the future, the electric heater industry will also form a stable competitive pattern like, and other related industries.
4. China's electric heater enterprises are mostly concentrated in Jiangsu and Zhejiang provinces
From the perspective of enterprise distribution, China's electric heater industry has a high regional concentration, mainly in Jiangsu Province and Zhejiang Province. Dongfang Electric is located in Zhenjiang City, Jiangsu Province, and Xinye electronics is located in Suzhou City, Jiangsu Province. In addition, a number of enterprises in Guangdong have developed rapidly, such as Tongli machinery and Zhongtai electric heating in Shenzhen.
5. Civil sector competition will be further improved
In the industrial field, there are only a few domestic enterprises that can produce industrial electric heaters with high technical difficulty, such as Dongfang Electric Heating Co., Ltd., while a large number of industrial electric heater manufacturers are concentrated in the low-end and medium-end markets with low added value, and have no strength to set foot in the high-end market.
In the civil field, the trend of the stronger is showing. Due to the stable cooperation of the industrial chain between the manufacturers of household appliances and electric heaters, the industry concentration has been high, and the concentration has a further trend.
