With the rapid development of new technologies, a new generation of intelligent low-voltage electrical equipment—characterized by high performance, smart functionality, high breaking capacity, communication capabilities, miniaturization, modularity, and energy efficiency—is set to dominate the market. As a result, the share of high-end low-voltage products is expected to grow significantly. The shift toward intelligent devices demands the integration of advanced manufacturing technologies and automated production lines, including key component manufacturing, automated testing systems, and assembly lines tailored for low-voltage equipment.
For private enterprises that lack independent innovation capabilities, this transformation presents both an opportunity and a challenge. While it offers a chance to upgrade and modernize, it also brings intense market competition. Currently, the low-voltage electrical industry suffers from severe product homogenization, with price wars and channel battles becoming increasingly common. Companies that fail to invest in R&D and foundational technology research will struggle to keep up in this evolving landscape.
In recent years, many companies have become more aware of these challenges and have taken proactive steps to improve their internal capabilities. They have managed rising raw material and labor costs, tackled financing issues, reduced operational expenses, upgraded equipment, launched new products, and implemented effective cost management strategies. These efforts have created a positive environment that supports long-term sustainable growth. Notable examples include Zhengtai Electric, Delixi Electric, and Daquan Group, which have emerged as leaders in the industry.
To successfully transform, low-voltage electrical companies should focus on identifying their unique strengths and becoming specialized producers of one or two key products. Gradually moving toward high-end offerings can help them break away from the cycle of product similarity. This can be achieved by targeting specific market segments, such as professional circuit breaker manufacturers or industrial electrical appliance specialists. At the same time, the government should encourage businesses and industrial clusters to extend their value chains, support the development of specialized, refined, and niche-oriented low-voltage electrical companies, and foster distinct and focused industrial ecosystems that drive overall industry upgrades.
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