CMIC: China's heat shrinkable material industry market enters a period of rapid development

CMIC (China Market Intelligence Center) latest release: China's heat shrinkable materials industry has entered a period of rapid development since the 1990s. In 2010, there were about 180 heat-shrinking material production enterprises in China with a certain scale, and the total industrial output value was 8.15 billion yuan. It is estimated that the total industrial output value will reach 12.6 billion yuan by 2015.

Figure: China's heat shrinkable material industry output forecast for 2008-2015 (RMB million)

Heat shrinkable materials for electronics and power are the leading products of heat shrinkable materials in China. There are a large number of Chinese electronic heat shrinkable material manufacturers, but they are mainly concentrated in the low-end market. Benefiting from the growth of China's power grid investment, the market demand for power-based heat shrinkable materials is strong. It is estimated that the output of China's heat-shrinkable cable accessories will reach 9.75 million sets in 2011, and the market capacity of heat-shrinkable materials for power will reach 2.03 billion yuan.

China's automotive heat shrinkable materials market is dominated by US Ruiqi and Sumitomo Electric, and domestic companies only account for 20% of the market. However, with the comprehensive adoption of domestic heat-shrinkable materials in the automotive industry certification and the price advantage, the market share of heat-shrinkable materials for domestic automobiles is expected to further increase.

The United States Ruiqi, Changyuan Group and Wal-Mart nuclear materials accounted for 66% of China's heat shrinkable materials market in 2010. Raychem is the world's largest manufacturer of heat shrinkable materials. Its main products include heat shrink tubing, communication cable accessories and heat shrinkable cable accessories. Its heat shrinkable products monopolize most of the international market. Especially in the aerospace and military applications, Raychem has an absolute competitive advantage.

Changyuan Group mainly produces heat-shrinkable sleeves for electronic, automotive and oil and gas pipelines, and maintains China's number one position and second place in the world in the heat shrinkable materials industry. 2010 Changyuan Group's heat shrinkable sleeve production capacity is 1.64 billion meters, and heat shrinkable material business income is 647 million yuan, of which high-speed rail heat shrinkable material products sales revenue is 80 million yuan, as the only company with high-speed iron heat shrinkable material certification in China. It is expected that this area will become a new profit growth point for Changyuan Group.

Wal-Mart is an important heat-shrinking material production base in China. It mainly produces electronic and electric heat-shrinking products. In 2010, it sold 1.15 billion meters of electronic heat-shrinkable casings, ranking first in the country for three consecutive years. In 2011, with the launch of the new nuclear material production project of Wal-Mart, the production scale will be greatly improved.