Magnetic components are the basic components to realize the mutual conversion of electric energy and magnetic energy, and are widely used in the downstream of home appliances, communications, energy, automobiles, industries, and medical care. It mainly includes two categories of electronic transformers and inductors. The global market space in 2020 is 61.58 billion yuan and 59.7 billion yuan respectively. With the rapid development of downstream photovoltaic energy storage, vehicle & charging piles, communications, etc., the magnetic components industry is ushering in a new period of development. According to the forecast of China Electronic Components Association, the global electronic transformer will reach 78.68 billion yuan in 2025, and the five-year CAGR from 2020 to 2025 will be about 5.0%.


According to CPIA data, in 2021, the newly installed photovoltaic capacity in the world will be 170GW, and the newly installed photovoltaic capacity in China will be 54.9GW. It is estimated that in 2022, the newly installed photovoltaic capacity in the world will be 195-240GW, and the newly installed photovoltaic capacity in China will be 75-90GW. According to Wood Mackenzie's forecast, the installed capacity of electrochemical energy storage will continue to grow rapidly in the next 10 years, with a forecasted compound annual growth rate of 31%, and the installed capacity is expected to reach 741GWh in 2030. Magnetic components are important components of photovoltaic & energy storage inverters, accounting for about 10% to 15% of the cost of the inverter. We predict that the total market space of photovoltaic & energy storage inverter magnetic components will be 5.33 billion in 2021, and it will reach 11.34 billion in 2025, with a 4-year CAGR of 20.8%.


The sales of new energy vehicles continue to exceed expectations. EV TANK raised the global sales volume of new energy vehicles in 2025 to 18 million units, with a ten-year CAGR of 40.3%. In contrast, as of 2020, the vehicle-to-pile ratio in my country is 2.9, which is far from the goal of 1.04 in the "Guidelines for the Development of Electric Vehicle Charging Infrastructure (2015-2020)". Under the dual stimulus of policy + downstream demand, the development of charging piles is expected to accelerate. Magnetic components are an important component of new energy vehicle OBC/DCDC, and are the upstream components of the power module of the core component of the charging pile. According to our calculations, the total market space for new energy vehicles/charging pile magnetic components in 21 years is 3.5 billion yuan. It reached 9.7 billion yuan, with a 4-year CAGR of 29%. The 800V architecture is dedicated to solving charging anxiety. High voltage and high power put forward higher requirements for magnetic components in vehicles and charging piles. The market space for magnetic components is expected to further increase.


The main production areas of all links in the global photovoltaic industry chain are in China. According to Wood Mackenzie data, the global market share of the six domestic inverter factories in 2020 is as high as 60%. Domestic manufacturers in the field of magnetic components for inverters are leading domestic manufacturers. With a scale of 1 billion, it is expected to follow the industry to usher in rapid development;


 Since 2020, domestic magnetic component companies have been under pressure from the double suppression of raw materials and exchange rates: the main raw materials of magnetic components are enameled wires, magnetic cores, silicon steel sheets, etc. Since 2020, the prices of bulk commodities such as copper and cold-rolled steel have risen sharply; Domestic magnetic components companies account for a relatively high proportion of overseas business, and the RMB began to appreciate rapidly in the middle of 20 years. Looking forward to 2022, raw materials have stabilized and declined, and the exchange rate has gradually recovered since April, and the profitability of companies in the industry is expected to gradually increase. The industry boom is superimposed on raw materials, and the exchange rate is damaged and repaired. The domestic magnetic components industry is ushering in a period of rapid development.



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