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CCID: Growth in China's electronic market

Posted: 10 Mar 2008     Print Version  Bookmark and Share

Keywords:CCID Consulting; decoration 

China's electronic special equipment and instrument market showed healthy growth in 2007, according to CCID Consulting. Sales revenue of computer room products grew 20.8 percent, the sales revenue of communication power supply increased 8.9 percent and the sales revenue of oscilloscope market increased 22.2 percent.

According to CCID, the sales revenue of decoration and fitment, UPS used in computer room and accurate air conditioning in computer room hit Rs.7,106.11 crore ($1.8 billion), accounting for 68.1 percent of the total market.

Development of the communication power supply market benefited from four major market developments: TD-SCDMA pre-commercial trial, 2G dilation, service outsourcing and breakthrough of overseas scale. Shipments of communication power supply hit 296,000 sets and revenues of communication power supply reached Rs.1,973.92 crore ($500 million). The sales revenue of oscilloscope reached Rs.276.35 crore ($70 million) in 1-2 tier market in 2007, which occupied 65 percent of total market share. In the 3-4 tier market, sales revenue of oscilloscope hit Rs.146.07 crore ($37 million.

CCID Consulting believes that China's economy will be favorable for the country's electronic special equipment and instrument markets over the next five years, fuelled with advances in IT applications and technology.

Key factors
CCID outlined several factors contributing to the growth of China's electronic special equipment and instrument markets.

The first factor boosting growth for China's market is the upcoming industrial and key events including the Beijing Olympic Games, Shanghai World Expo and Asian Games in Guangzhou, which bring investment opportunities to these cities. IT applications which emphasize on emergency response system and community intelligence's construction gradually step into right path in these cities, said CCID. For industry applications, 3G's deployment will drive growth for communications, consumer electronics and IT service markets.

Another factor CCID noted is that acquisition integration becomes a shortcut for improving UPS product line. The acquisition integration between international UPS manufacturers in UPS industry was most remarkable in 2007?with the convergence of APC and MGE, Powerware acquiring MGE's UPS with low power or Eaton acquiring Phoenixtec Power. The subjects of these acquisitions are remedying defects, improving UPS product line and the quality of channels.

A third factor is the healthy market for oscilloscopes wherein 1-2 tier cities are the main sales market and the markets in 3-4 tier cities continue to grow rapidly. Because of the intense competition and manufacturers' expansions, major manufacturers pay attention to the 3-4 tier markets and dig emerging market demands. Thus, 3-4 tier markets will grow rapidly.

According to CCID, competition in communications power supply will take place in terms of technology and product quality. Compared with other electric products, the communications power supply market is characterized by vitality and high profit. Rapid developments in communications industry have led global communications power supply to put forward higher requirements to manufacturers in terms of technology and product quality.

Finally, UPS products converge with integrated solution and manufacturers extend the concepts of green electronics. More and more manufacturers consider UPS as one part of industrial integrated power supply solution. The manufacturers have also put forward the concept of green and energy-saving solutions, which could promote the healthy development of the UPS industry.

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