The Market of High Tech in China

11Jun2015

China’s 12th Five-Year Plan outlined the country’s intent to upgrade its manufacturing sector, to accelerate the growth of the service sector, and to build a modern energy industry. The success of the Plan demands rapid expansion of the market of high tech in China which will help to boost the economy and to guarantee sustainable development.

Clean energy High-Tech Market promoted by the Government

China’s green technology market will attract more investment with a potential value up to one trillion U.S. dollars annually, estimated by China Green tech Report 2013. Major market opportunities involve seven sectors, including cleaner conventional energy, renewable energy, electric power infrastructure and green building. The Chinese government‘s policies were positive drivers for green technology market development. China is the second largest energy consumer in the world and most of its energy consumption are coal, 70 percent of its primary consumption. The environmental cost of traditional coal use is already beginning to take its toll, particularly through SO2 and NOx emissions which are leading causes of acid rain. Besides energy consumption, other pollution also contributes to the worsening environmental problems, making the government take the issue of green-tech seriously. The support and investment from government may have a significant impact on the expansion of green tech market. China may expand its clean energy market and investment to approximately 5 trillion yuan ($738 billion) in the next decade through developing and producing cleaner sources of energy to reduce emissions from burning oil and coal, estimated by a government official. A wide range of businesses begins to develop green technology solutions to address a broad spectrum of environmental issues. For instance, China’s electric vehicles market is developing through stimulating consumer demand, with improved performance of batteries, battery management systems and DC charging infrastructure at targeted pilot locations. Another example is the market for natural gas. Its share in China’s energy supply may increase to more than 8 percent by 2015 from 3.9 percent currently, reaching 260 billion cubic meters by then.

Electronics Market Develops at a fast speed in China

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As per market research in China, the penetration rate of smart TVs in 2013 will grow to 33 percent. The popularity of smart TVs shows that the market pattern of its related industrial supply chains such as CPUs, chips, devices, content, networks and other electronic components are experiencing a deep integration and change. Despite the continuous downturn faced by the international economy since the beginning of the year, China’s electronics market has continued to develop rapidly thanks to research effort and to the growth of emerging industries such as smart home technologies, green energy, new energy resources, the Internet, optical communications and more. International manufacturers continue to deeply explore the potential of the Chinese market. The downturn in the global electronics market has forced international electronics manufacturers to adjust their product strategy accordingly. The vendors see the Chinese market as an important strategic developing market and have deeply expanded their Chinese operations. Improving market share in China has become an important strategic objective of international electronics manufacturers. ROHM, Panasonic, Murata, TDK, Taiyo Yuden, Nichicon, Nippon Chemi-Con, Kyocera and other international leading manufacturers have spared effort to display the latest products and technologies on China Hi-Tech Fair, and have included products such as the world’s smallest monolithic ceramic capacitor introduced by Murata. According to market research in China, Chinese local vendors are also growing rapidly with the fast development of China’s electronics market. In recent years, Eyang Technology Co., Ltd., one of the leading local manufacturers, has developed microminiaturized and ultra-miniaturized product lines, and has made sales up to 460 million yuan in 2011. The size of its chip multilayer ceramic capacitor has been developed from 0603-type to 0402-type, which is the mainstream specification in the market. Its 0201-type MLCC production volume has exceeded 7 billion, and mass production of its 01005-type products began in 2013. The market of high technology in China is greatly attractive with strong potentials to win enough market shares for foreign investors and business cooperators. The uniqueness of high technology implies that it is inimitability that leads the market.

Daxue Consulting, Market research Company in Shanghai, contact us at dx@daxueconsulting.com

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