As fundamental components of industrial systems, cables are widely used. Consequently, given China’s rapid economic growth, the cable market holds considerable potential for future development. In the coming years, certain segments of the cable market will experience substantial growth, and several cable products will see robust demand from the market.

The use of overhead lines will increase significantly.

The ongoing inter-provincial grid connections in northern, central, and southern China, as well as the gradual nationwide integration of the power grid, coupled with the extensive use of ultra-high-voltage and large-capacity overhead lines (750 kV lines in the northwest region and 500 kV lines in other regions), will drive a 10% month-on-month growth in overhead lines. In addition, demand for medium-voltage cables ranging from 10 to 35 kV is also expected to rise significantly, growing at a month-on-month rate of 8% to 10%. Currently, the adoption of double-ring network power supply systems in major cities and the increasing rate of underground cabling in downtown areas will substantially boost the use of medium-voltage cables. At present, most urban planning authorities are emphasizing underground cable power supply in urban districts, and some cities have already incorporated this requirement into local regulations, presenting substantial opportunities for medium-voltage distribution cables.

The output value of building wiring will exceed 15%.

In recent years, despite the downturn in the real estate sector, the construction industry—a key sector of the 21st century—will bring opportunities for cables used in building wiring and other electrical equipment. Whether it’s residential housing, office buildings, or shopping malls, all these types of structures will require large quantities of various cable products. Meanwhile, as consumers’ demands for living conditions continue to rise, the growing need for smart homes coupled with the construction of diverse specialized networks is creating a huge market for wires and cables. It is projected that in the future, the output value of building wiring will account for more than 15% of the entire wire and cable industry.

The market department for new-energy power cables cannot be underestimated.

With the rapid development of the new energy sector, the market for cable products used in new energy applications is also gaining significant attention. Take nuclear power as an example: in the years ahead, government support for the new energy industry will continue to grow. Meanwhile, technological advancements will drive down the cost of using new energy sources, making their economic value and socio-environmental benefits increasingly prominent. Over the past year, the new energy sector has generally outperformed the broader Shanghai and Shenzhen stock markets. We remain optimistic about the long-term investment potential of the new energy sector and maintain a “Buy” investment rating. For instance, new-energy vehicles—being a key measure for China’s efforts to combat air pollution—will continue to receive strong policy support and boast excellent growth prospects. Currently, the number of charging stations in China falls far short of meeting the needs of electric vehicle development, and “difficulty in charging” remains the biggest bottleneck for electric vehicles in China. Policies encouraging the construction of charging stations will be introduced at an accelerating pace. Tesla’s decision to open-source its patents will further boost the development of the new-energy vehicle industry.

The solar photovoltaic cable market will also benefit.

Meanwhile, the solar photovoltaic industry has also attracted considerable attention from investors. With its boundless development potential, the solar PV industry will undoubtedly inject equally boundless momentum into the cable industry. Thanks to China’s transformation from a major manufacturer of PV equipment to a leading installer of PV systems, the solar PV industry is experiencing rapid growth. Currently, domestic PV power plant development primarily encompasses two main categories: ground-mounted PV plants and distributed PV systems. Regarding ground-mounted PV plants, some industry experts believe that their business models are now mature and represent the segment within the industrial chain that currently benefits most.

Automotive wire and cable will continue to grow.

In addition, the development of cities will drive the growth of urban rail transit, thereby boosting the application of various flame-retardant cables. Power and lighting cables used in tunnels and subway stations also represent a significant highlight. Meanwhile, with the rapid advancement of China’s domestic industrial sector, there will be robust growth in wires for automotive applications as well as enameled wires. For instance, wires used in the automotive and motorcycle industries fall into two main categories: enameled wires and automotive-specific wires. The automotive industry has led to a substantial increase in sales of both enameled wires and automotive-specific wires, and in the coming years, demand for these products is expected to continue growing at an annual rate of around 10%.

Today, all industries are actively undergoing transformation and upgrading, and the cable industry is no exception. Combining traditional industries with emerging online platforms is indeed a sound strategy for transformation. This approach not only significantly reduces enterprises’ procurement costs but also helps them align with international standards and break down market barriers. Experts predict that, for the foreseeable future, the integration of traditional industries with modern information technology will be a forward-looking choice.