1. Market demand
China’s power grid construction investment will continue to grow steadily, including smart grid construction, new energy construction and distribution network transformation, which will bring a new round of development opportunities for the cable accessories industry.
The “long-distance, large-scale, high-capacity and high-voltage” pattern of power grid construction will further stimulate the demand for high-voltage and EHV cables and ABC Cable accessories. At the same time, with the development of new energy such as photovoltaic, wind power and nuclear power, the demand for high-voltage and ultra-high voltage DC cable accessories will also increase significantly. Among them, offshore wind power has become a research hotspot of global wind power development. All countries in the world regard offshore wind power as an important direction of renewable energy development, and China has also classified it as an important part of strategic emerging industries. China’s offshore wind power development has entered the stage of large-scale and commercial development. Therefore, it also brings opportunities for the development of submarine cable accessories (submarine cable terminals, intermediate joints and repair joints).
At present, China’s cable accessories industry is still dominated by the domestic market to meet domestic demand. Because Chinese products are competitive with imported products in cost and price. Along with one belt, one road construction will promote the rapid development of the regional economy along the line, and the demand for power construction will be sustained. One belt, one road, China’s home appliances network is relatively backward. In addition, China’s local equipment companies are backward in technology, limited in supply capacity and high in import dependence. This brings considerable business opportunities to China’s cable accessories enterprises with superior price performance.
In the next five years, the average growth of medium and low voltage power cables for power grid construction will still be 7% – 10%. High voltage ACAR Cable accessories of 66kV and above will also become the growth highlight of the industry.
2. Technological innovation and existing problems
The development of cable accessories is closely related to the development of cables. It has also experienced the process from oil filled insulation to dry insulation, from medium voltage to high voltage and ultra-high voltage. The development and production of cable accessories is not a single professional technology, but requires the use of multi-disciplinary comprehensive technology. The fields involved mainly include electrical, mechanical, chemical, polymer materials, etc.
Chinese enterprises lack the core technology of power cable accessories, especially in the research and development of EHV power cable accessories, which has been restricted by technology. In recent years, the cable accessories independently developed by a few domestic technology leading enterprises have gradually become mature, which not only fill the domestic gap and break the foreign monopoly, but also some products have been exported abroad, and the voltage level has reached 500kV. The quality and reliability of domestic cable accessories have also been greatly improved.
Except for a few leading enterprises, the main products of most domestic cable accessories manufacturers are medium and low voltage cable accessories or fittings. Most of them have small production scale, relatively little R & D investment, weak R & D ability, forward-looking and basic common technology research lags behind foreign competitors, and the development of basic materials, basic processes and key components lags behind. Especially in terms of high-voltage, ultra-high voltage AAAC Cable accessories and special cable accessories, there is still a certain gap with the foreign advanced level. There is a long-term shortage of high-quality talents in the industry, the R & D and test ability is weak, and there are few production enterprises with sustainable innovation ability in the industry.