Abstract: The high-end market of the low-voltage frequency converter industry is still dominated by foreign products, accounting for more than 80% of the market share. Currently, there are few domestic enterprises participating in the competition, with low market share. They focus on producing frequency converters but lack core products for the control and execution layers. The future development trend will shift towards a high-profit model that provides comprehensive solutions. Import substitution will be the main reason for the industry leaders to maintain high growth for some time.
The 12th Five-Year Plan proposed to "transform and upgrade the manufacturing industry," which includes "developing advanced equipment manufacturing," with improving automation levels being a key focus.
Due to the influence of downstream usage conditions, low-voltage frequency conversion technology emphasizes precise and wide-range regulation. In the field of industrial automation, it is closely linked with front-end PLC control and back-end servo motors to form an industrial automation control system.
Similar to high-voltage frequency converters, low-voltage frequency converters are also divided into high-end, mid-range, and low-end markets. Among listed companies, Huichuan Technology and Invt mainly compete in the high-end market. However, from a technical perspective, automation upgrades emphasize the application of frequency converter technology in precision fields; therefore, this discussion will primarily focus on the high-end market. Upgrading manufacturing equipment is a gradual and long-term process. Low-voltage frequency converters, along with PLCs, servo motors, and other components, form industrial automation control systems. Their downstream applications involve multiple sub-sectors of the manufacturing industry. Unlike high-voltage frequency converters, which are primarily influenced by national policies, the downstream demand for low-voltage frequency converters is related to the overall level of industrial development. Future equipment upgrades will be a gradual and long-term process, and the industry is expected to maintain a stable growth rate of around 15% for some time.
Looking at specific sectors, elevators, injection molding machines, and low-voltage frequency conversion equipment for rail transit are expected to see growth rates exceeding the industry average, becoming key areas for development.
The high-end market of the low-voltage frequency converter industry is still dominated by foreign products, accounting for more than 80% of the market share. Currently, there are few domestic companies participating in the competition, with low market share. They focus on producing frequency converters but lack core products for the control and execution layers. The future development trend will shift towards a high-profit model that provides comprehensive solutions. Import substitution will be the main reason for the industry leaders to maintain high growth for some time.
my country's low-voltage frequency converter market has low concentration, with major manufacturers' strengths relatively dispersed. For example, Invt mainly focuses on hoisting, wire drawing, and coal mining, while Huichuan Technology relies on the elevator and injection molding machine markets. Due to their significant price advantages, domestic companies will continue to seize market share from foreign companies. There is no intense competition among domestic companies in the short term, thus the trend of high profit margins and high growth is expected to continue. Key strengths of major low-voltage frequency converter manufacturers are outlined below.
Domestic frequency converter manufacturers, represented by INVT and Huichuan, have begun to venture into PLC and servo products, aiming to provide customized solutions for their clients in the future. Currently, the two companies have different development models and will face challenges in integrating sales channels and productizing control layer execution technologies.
