The integrated circuit market analysis and expectation of Chinese smart grid industry.

                     The integrated circuit market analysis and expectation of Chinese smart grid industry.

2017-1-10

With  the implementation of national strategy “Made in China 2025” , the  optimization of industrial informatonize, automation and  intelligentialize is continuously develop as well as the rapid  improvement of the integrated circuit market, also the construction of  the smart grid is one of the significant impetus of the economic growth.

The  SGCC first announced the development plan for the smart gird industry  in may 2009, and in January 2010, the State Gird announced <<The  Opinions on Accelerating the Construction of Strong Smart Gird>>  which mentioned complete the basic goal of establish the stable smart  grid. According to the SGCC project of the construction of smart gird  ,since 2009, the State Gird Corporation invested 80 billion yuan to  build electricity information collection systems in 31 provincial gird  corporations within 3 to 5 years, that include 23 billion yuan purchase  fund of Electricity Auto Management System and Data Collection Terminal  and 27 billon yuan for the carrier meters purchase. With the development  of smart gird construction, the market demand of smart meters will keep  increasing. China Southern Power Grid Co already invested 100 billion  yuan for the smart gird construction during the “Twelfth Five-Year”  period. The market demand of electric energy meters has been promoted by  these construstions.

There  are many types of products designed in the smart gird system, the smart  meters and relevant data collection system are the most important  parts, the energy measurement IC, MCU chip and power carrier chip are  the three major integrated circuit products.

As  the core component of smart meter, the energy measurement IC have the  direct bearing on the measuring accuracy, reliability and other  properties of products which is the core of the entire smart meter. A  certain extend volatility still exist in energy measurement IC market  because the years of discrepancy in the invitation for bids of domestic  smart meter products.

The development of China energy measurement IC during 2010-2015 (sales volume)：

The development of China energy measurement IC during 2010-2015 (sales)：

In  terms of product structure, China smart meter market still dominated by  single-phase meters that mainly rely on the public bidding from SGCC  and CSG, also the SGCC has an absolute majority in the market. As the  most basic type of products, single-phase meter market will have a  stable growth by the end of product replacement period and the demand of  early bidding.

The development of China single –phase metering chip from 2010-2019 (sales volume)：

The development of China single-phase metering chip from2010-2019 (sales)：

In  terms of single-phase metering chip product structure, with the  technology improvement and the higher comprehensive requirements of the  product’s performance , there is a gradual shrinkage will exist in the  market. Therefore, most of the manufacturers will adopt SoC project to  explore more market space.

The market capacity and development of China single-phase metering chip from2010-2019 (sales volume)：

The market capacity and development of China single-phase metering chip from 2010-2019 (sales)：

Currently,  single-phase metering soc chips are mainly designed for export.  However, in domestic market , with the higher standard of investment and  comprehensive performance required by SGCC and CSG, the ordinary  single-phase metering chips will be replace by the SOC chips which  integrate MCU and other functions.

The market capacity and development of China single-phase metering soc chips from 2012-2019 (sales volume)：

The market capacity and development of China single-phase metering soc chips from 2012-2019 (sales)：

With  the expansion of the industrial use and the smart gird construction,  there is a continuous increase of three-phase meter market. During  2010-2015, the compound annual growth rate of the market capacity has  reached 13.95%.

The development of China three-phase metering chip from 2010-2019. (sales volume)：

The development of China three-phase metering chip from 2010-2019. (sales)：

With  the increasing bidding scale for smart meters in the past few years,  the procurement scale of SGCC and CSG have growth stably. In the future,  the energy measurement IC market will keep a stable growth by the  effects of the development of smart gird construction, the demand of  early product replacement and the increasing scale of export business.  In 2019 the sales volume of China energy measurement IC will reach the  number of 1842700000.

The development of China energy measurement IC from 2016-2019 (sales volume):

The development of China energy measurement IC from 2016-2019 (sales):

By  the effects of the large scale construction of smart meters and the  purchase bidding from the SGCC, the e-meter market increase persistently  ,the electromechanical meters market is declining which will be  replaced by e-meter products in the future. Now, the e-meter products  occupied 90% market share of total domestic electric energy meter  market, the electromechanical meters will be completely replaced in the  future. Meanwhile , with the rapid development of electric power  departments, the application fields of three-phase meter already  developed from measuring and charging; power distribution and  transforming to the operating transformer substation; power demand  measuring and managing and trans-provincial gird charging. The clients  of measuring and charging service already be explored from great  industry to commercial, general industry and non-industrial business  which provide an urgent demand and huge development space for the  three-phase meter market.

The expected scale and structure of Chinese electric power metering chip market from 2016-2019. (sales volume):

The expected scale and structure of Chinese electric power metering chip market from 2016-2019. (sales)：

In  addition to the metering chip, also MCU is one of the core IC products.  Chinese smart meter market has reached the peak of upgrades and  replacement over the past five years. The new standard of smart meter  has brought a higher technical requirement which promoted an upgrading  of the product design in the industry. The new standard requires a  higher performance in metering, billing system, communication, power  dissipation and electronic wiring, as well as the higher DMIPS  requirement.; It makes it possible that more reservoirs provide a more  complex data processing. More I/O and other support devices already  became to the essential functions of the new MCU, such as SPI, I2C,  smart card，SUART and RTC.

The scale and development of Chinese MCU market from 2010-2019. (sales volume)：

The scale and development of Chinese MCU market from 2010-2019 (sales)：

With  the increasing requirements of management automation, informatization  and downsizing of efficiency, the AMR of power enterprises, the IOT of  industrial enterprises and the automation of communities and offices  already became to a tendency of future development. The power line  communication become to the preferred basic communication method of AMR,  IOT, intelligent building and intelligent residential sub-distract by  virtue of its incomparable superiority which based on the power line  transmission system.

Meanwhile,  the PLC chips have been using widely in different industries,  especially in industrial control and smart home areas. The rapid  development of LED street lamp control, mine safety management, electric  vehicle management and household metering instrument information  transmission will promote the market growth of PLC chips.

The market scale and development of PLC chips in China from 2010-2019. (sales volume)：

The market scale and development of PLC chips in China from 2010-2019. (sales)：

In  addition, the DC metering chip also became to one of the hot topic in  the industry which basically used in new energy charging facilities,  photovoltaic power generation and intelligent housing system. In 2015,  China has about 3600 charging stations and total number of 39000  charging facilities. And the number of charging facilities will reach 5  million by 2020. In 2020 the production of smart TV will reach about 18  million, smart water heater about 31 million , smart refrigerator 34  million, smart air conditioner 70 million and intelligent small  household appliances 15 million. Meanwhile, in 2020, the penetration  rate of DC metering chip in smart TV, smart water heater, smart  refrigerator and smart air conditioner will reach about 20% as well as  5% in intelligent small household appliances. The DC metering chip  market will promoted by the development of different applications.

The market scale prediction of Chinese DC metering chip market from 2016-2020：

With  the rapid development of information technology, the flourishing  development prospect not only exist in domestic market but also has a  wide space in international market. According to the International  Energy Agency, in 2040, 60% of the electric power investment will use in  the renewable energy technology and the total generated energy will  achieve goal of 8300TWh which is the half of total generating increment.  The strong renewable energy investments around the world will continue  to promote the development of electric instrument and equipment  industry, and it provided a strong support for the development of IC  products market.