Analysis of High-voltage Frequency Converter Industry Competition

As the most ideal speed regulation method currently recognized, the frequency converter has become an indispensable role in building a low-carbon economy. Its superior energy-saving characteristics meet the objective requirements of energy conservation and emission reduction.

The upstream industry of the inverter industry is a fully competitive landscape. It mainly provides components such as transformers, IGBTs, cooling fans, resistors, and capacitors. Among them, only the key component IGBTs cannot be mass-produced domestically. At present, they are mainly sourced from the Chinese agencies of foreign manufacturers. Although the prices are relatively high, the supply is relatively abundant. Therefore, the overall inverter production is less constrained by the upstream industry.

The potential market downstream of the inverter is huge, and its market capacity is mainly affected by the national energy conservation and emission reduction policies and the awareness of energy conservation of the enterprise. Downstream demand is more decentralized, and there is no over-reliance on a particular user in inverter manufacturers.

In the increasingly fierce competition in the industry today, technology and service are two battlefields for enterprise competition. Whether technology is advanced and whether it can provide high-quality integrated services determines the market position of the company.


High-voltage inverter market concentration is high. The high-voltage frequency converter market has a very high technical threshold. There are currently only 5 to 7 international mainstream manufacturers, such as German Siemens, US Robinson (acquired by Siemens in 2004), Rockwell, ABB Switzerland The company and Japan’s Toshiba Mitsubishi Corporation. There are only five to eight domestic companies with comprehensive strengths from R&D, design, production, and service, and companies that master the core technologies of high-voltage inverters, such as Lead Huafu (foreign capital), Hekang Inverter, and Dongfang Hitachi (joint venture) ), Jiuzhou Electric, Zhiguang Electric etc.

From the perspective of enterprise scale and competitive strength, mainstream manufacturers at home and abroad have occupied most of the market share and formed a relatively stable competitive landscape. For new entrants, they will face higher technical barriers, capital barriers, reputation barriers, and qualification barriers.