Development Status of Magnetic Components Industry in 2023

Magnetic components are the basic components to realize the mutual conversion of electric energy and magnetic energy, and are widely used downstream. Magnetic components refer to the electronic components based on Faraday's law of electromagnetic induction, which are composed of magnetic cores, wires, bases and other components, and realize the mutual conversion of electric energy and magnetic energy. It is an important branch of the electronic component industry. Magnetic components are mainly used in power supplies and electrical and electronic equipment, and are ultimately used in downstream industries such as communications, energy, medical care, and automobiles. They are important basic components to ensure the safe and stable operation of electrical and electronic equipment.

Magnetic components mainly include electronic transformers and inductors. Among them, electronic transformer products play an important role in the application of electronic products due to their stable performance and high conversion efficiency.

The global electronic transformer market is growing steadily. An electronic transformer is an electronic component that uses electromagnetic induction to realize the function of AC voltage rise and fall or impedance transformation, and is composed of an iron core (or magnetic core) and a coil. In 2020, the global electronic transformer market size will be about 61.58 billion yuan, a year-on-year increase of 4.3%. Due to the strong growth of the Chinese market since 2021, the China Electronic Components Industry Association predicts that the global electronic transformer market will reach 66.84 billion yuan in 2021, an increase of 8.5% year-on-year, and will reach 78.68 billion yuan by 2025. The average growth rate is about 5.0%.

Based on lighting and home appliances, new energy, industrial control medical care, and wearable drive electronic transformers are developed. Lighting and home appliances are the basic application markets for electronic transformers, accounting for 24% and 15% of the global transformer scale respectively. In addition, new energy sources such as communication equipment, mobile terminals, computer equipment, industry, medical equipment, and photovoltaics are all important downstream applications of electronic transformers. In the next few years, the rapid development of downstream photovoltaic energy storage, new energy vehicles and charging piles, industrial control medical care, communications, and wearables will become the main driving force for the growth of the electronic transformer market.

The global electronic transformer manufacturers are mainly concentrated in mainland China, Taiwan and Japan, and the backbone enterprises include Delta, Lite-On, TDK, Sumida, Haiguang, Jingquanhua, and Click. Among them, Chinese mainland enterprises accounted for about 47% of the global market share, Chinese Taiwan enterprises accounted for about 18% of the global market share, and Japanese manufacturers accounted for about 14% of the global market share.

Inductors refer to passive electronic components that can store electrical energy in the form of magnetism. They are one of the basic passive components in electronic circuits. The global demand is more than 300 billion. Inductors include traditional plug-in inductors and type inductors. In 2020, the global inductor market space is about 59.7 billion yuan. With the rapid change of communication technology and the continuous development of the Internet of Things and smart cities, the market space will increase to 76.15 billion yuan by 2024, with a compound growth rate of 7.5% from 2019 to 2024 .

From the perspective of application fields, mobile terminals are the largest application market for inductors, accounting for 35% of the global output value of inductors. In addition, automobiles, industries, home appliances, communication equipment, computers, etc. are the main application markets for inductors. In the next few years, the demand from the automotive, industrial, and communication markets will become the main driving force for the growth of the inductor market.

Japan is dominant, and there is a wide space for domestic substitution of inductors. The main global inductor manufacturers are concentrated in Japan, the United States, mainland China, Taiwan, South Korea, Germany and other places. The backbone enterprises include Murata Manufacturing Co., Ltd., TDK, Taiyo Yuden, Sumida, Vishay, Coilcraft Electronics, and Sunlord Electronics , Chilisin, Samsung Electro-Mechanics, Wurth, etc. Among them, Japanese companies have the highest overall market share, reaching 49.7%; Chinese mainland inductor manufacturers account for about 16.1% of the world's share.

Magnetic components are in the middle of the industry. The upstream includes wire rod manufacturing, magnetic material manufacturing, insulating material manufacturing and auxiliary material manufacturing, and the downstream includes various power supply products (including inverters) used in various industries.

Enameled wire, magnetic core, silicon steel sheet, semiconductor, etc. are the main raw materials. The proportion of direct materials of companies in the industry is usually more than 70%, and the main raw materials are enameled wires, magnetic cores, silicon steel sheets, semiconductors, etc. Taking Jingquan Huawei as an example, enameled wires, magnetic cores, silicon steel sheets, and semiconductors accounted for 24.9%, 16.2%, 10.6%, and 5.4% of the purchase amount in 2016, respectively. The main material of the enameled wire is copper, and the silicon steel sheet is mainly made of cold-rolled silicon steel.