Magnetic components industry market classification and competitive landscape

(1) Classification of market segments

Magnetic components are electronic components that realize the mutual conversion of electrical energy and magnetic energy, which are important branches of the electronic components industry and important basic components to ensure the stable operation of electrical and electronic equipment. Magnetic components are widely used, covering many fields such as network communications, automotive electronics, industrial power supplies, consumer electronics, security equipment, smart home, medical electronics, etc. There are many types of magnetic components, and there are certain differences in the models and specifications of each product.

Thanks to the wide range of application fields, magnetic components have a good market development space in the future. In the field of network communication, magnetic components are mainly used in network communication products such as routers, switches, servers, set-top boxes, optical fiber transceivers, network television, and terminal communication equipment.

In the field of new energy vehicles, new energy vehicles are equipped with batteries, motors, electronic controls and other electronic systems, and the application scenarios of on-board electronic products are broader than those of traditional fuel vehicles, and the utilization rate of electronic magnetic components of new energy vehicles is higher. In the field of industrial power supply, magnetic components are required for power supply equipment such as communication power supply, server power supply, power supply, and medical power supply; In the field of consumer electronics, power modules and chargers of consumer electronics such as smartphones, tablets, and laptops will involve the application of magnetic components.

(2) Overview of market competition pattern

At present, most of the world's major magnetic component manufacturers are concentrated in Europe, America, Japan and China. Due to their long development history, manufacturers in Europe, the United States, Japan and Taiwan have a first-mover advantage in the magnetic components market and have a high market share by virtue of their advantages in technology, quality and brand, and the main manufacturers include TDK, Murata, Pulse, Bothhand, Delta Electronics, DELTA, Lite-On Technology, etc.

In the middle of the 20th century, the global production and sales of magnetic components were mainly concentrated in developed countries and regions such as Europe and the United States, but because most of the magnetic components were processed manually, the labor cost was high. In the 60s of the 20th century, the magnetic components industry gradually shifted from Europe and the United States to Japan, Taiwan and other regions. In the 90s of the 20th century, due to the good domestic investment environment and low labor costs, the global magnetic components industry gradually shifted to the southeast coastal area of China.

China's magnetic components manufacturing industry started relatively late, from the 90s of the 20th century to the early 2000s, China's enterprises mainly rely on cost, service and other advantages to engage in OEM production, competitiveness is relatively limited. However, with the continuous improvement of China's R&D strength, a number of large-scale local manufacturers with their own brands have emerged, such as Mingpu Optomagnetic, Click, Jingquanhua, Maxim Technology, etc. At the same time, in the context of the global electronics manufacturing industry transfer, China has become one of the main R&D and production bases of magnetic components in the world.

The domestic magnetic components market industry concentration is relatively low, in the future, the downstream network communications, automotive electronics technology upgrading on the quality, performance, technical requirements of magnetic components will continue to improve, magnetic components manufacturers of technological innovation, large-scale production capacity, rapid response ability will become more and more important, superior manufacturers will have a better market opportunities, the proportion in the industry will further rise.

(3) Industry characteristics

(1) Periodicity

The development of magnetic components is closely related to the development of the national economy, national industrial policy, and the development of downstream industries. In recent years, China's economy has continued to grow rapidly, and the state has encouraged and supported the development of emerging industries, which has effectively increased the market demand for magnetic components. In particular, the vigorous rise of 5G communications, gigabit optical networks, IPv6, big data centers, industrial Internet, Internet of Things, new energy vehicles and the support and guidance of national policies will bring a new round of development opportunities for the magnetic components industry.

However, downstream industries such as network communications, automotive electronics, and consumer electronics are typical technology-oriented industries, and the emergence of new technologies and new formats is the normal state of industry development, so in the short and medium term, there are certain cyclical fluctuations in the magnetic components industry, but in the long run, the magnetic components industry is still on the rise, and the future development space is still broad.

(2) Seasonality

The magnetic components industry presents certain seasonal characteristics, and the sales revenue of companies in the industry in the second half of each year is usually higher than that in the first half of each year, mainly due to:

(1) Some end users of downstream customers of magnetic components are the three major domestic telecom operators, and domestic telecom operators usually abide by a strict budget management system, and their annual procurement plans usually begin to be formulated at the beginning of the year and need a period of time to improve, and more procurement plans are implemented in the second half of the year, so as to be transmitted upward to magnetic component enterprises, resulting in relatively high production and sales in the second half of the year;

(2) Magnetic component enterprises have a high degree of dependence on labor, and the operating rate of magnetic component enterprises in the first half of the year is lower than that in the second half of the year due to the influence of domestic holidays, especially the traditional Spring Festival holiday, which in turn affects the scale of revenue in the first half of the year to a certain extent.

(3) Regionality

In recent years, with the refinement of the global industrial division of labor and the influence of domestic economic policies, the magnetic components industry has gradually shifted from Europe, America, Japan, Taiwan and other countries or regions to Chinese mainland, and is concentrated in the Pearl River Delta, Yangtze River Delta and other regions with a certain electronic manufacturing industry base, and the regional characteristics of the industry are more obvious.