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In 2023, due to the adjustment of the global industrial chain, the Russia-Ukraine conflict, the Palestinian-Israeli conflict, tight monetary policies, rising debt risks and other factors, the downward pressure on the global economy continues to be prominent. Although China's economy has entered the track of trend recovery, the overall economy is still running at the bottom due to the downturn in downstream demand and the superimposed automation market is in the cycle of destocking, which in turn affects the demand for low-voltage inverters. In 2023, the overall low-voltage inverter market bid farewell to the growth of the past five years and ushered in the first decline, the overall market size shrank by 1.0% year-on-year, and the market size was 28.3 billion yuan.

In 2023, affected by factors such as sluggish real estate investment, sluggish manufacturing demand, and pressure on exports, the traditional OEM industries represented by machine tools, textile machinery, packaging machinery, lifting machinery, and HVAC show a downward trend. The surge in the shipping industry in 2023 has driven the growth of demand for low-voltage frequency converters for transportation vehicles, leading the growth of the traditional OEM market. The electronic manufacturing equipment industry and paper machinery industry performed better, the electronic manufacturing equipment industry in 2023 is mainly driven by the demand of the photovoltaic industry, the growth is significant, but the traditional 3C electronics and semiconductors are still in a downturn, lithium in the second half of 2023 also gradually entered the downward cycle.

In 2023, the performance of various subdivided project-type industries is different, of which metallurgy is significantly lower than the average level of the market. The ultra-low emission transformation and capacity replacement of steel in the metallurgical industry has come to an end, resulting in a reduction in the demand for low-voltage inverters, but the overall performance of the non-ferrous industry is better. The building materials industry is affected by the downturn in real estate investment, and the overall trend is declining. The petrochemical industry is basically dominated by renovation projects, and there are few new projects. The mining, chemical, oil and gas and power sectors showed significant growth. The mining industry is affected by the coal gap resulting in the release of projects and the landing of digital transformation projects, driving the growth of demand for low-voltage inverters; The chemical industry is mainly derived from the implementation of upgrading projects of new chemical materials, electronic chemical industry and traditional chemical enterprises, as well as the demand for environmental protection under high pressure transformation projects; The oil and gas industry is mainly derived from the release of oil and gas pipeline construction projects and oil and gas storage projects. Power is mainly driven by policies, and the thermal power projects of millions of units are frequently released, superimposed by the demand for power transformation projects.

It is expected that in 2024, with the gradual landing of the dual-carbon policy and equipment renewal and transformation policy, the upgrading and transformation of the project-based market will continue, but the growth rate will slow down. The future opportunities of the project-based market are more related needs of energy conservation and carbon reduction, environmental protection transformation, equipment upgrading and digitalization.

In 2023, the share of Chinese brands will be further expanded by the dividend of import substitution, the perfect supply chain system and the after-sales service system. At the same time, the researchers noted that in the context of sluggish market demand, the market performance of China's first-tier brands remained stable, while China's small and medium-sized brands are facing the pressure of industry reshuffle.

In 2024, with the proposal of new quality productivity, the adjustment of industrial structure, equipment renewal and other related policy dividends continue to release, downstream manufacturing investment confidence continues to rise, it is expected that economic growth will return to the potential growth rate, economic operation as a whole improve, downstream demand will gradually pick up, and then drive the increase in demand for low-voltage inverters. Therefore, it is expected that the future low-voltage inverter market will still maintain a small growth trend, but there are still large uncertainties in the year.