China Heat Sink Industry Analysis

The heat sink is a collective term for a series of devices used to conduct and release heat. China heat sink industry has been developing for more than two decades. With traditional channels being impacted and the financing environment cold, the development of radiator companies is being affected.

According to the analysis data of the current China heat sink industry situation from 2010 to 2019, the number of patent applications related to China heat sink increased year by year, reaching 11,818 in 2019, a year-on-year increase of 10.55 percent, indicating that the overall technology of the industry has reached a certain maturity and entered a bottleneck period.

It is estimated that in 2020, the average annual compound growth rate of China's automobile ownership will reach 24.7%, and the average annual growth rate of automobile radiator output will reach 22.3%, basically maintaining the same growth as China’s automobile industry. The radiator industry continues the "13th Five-Year Plan" "The rapid development momentum during the period continues to maintain a relatively high growth rate.
At present, in the Chinese market, most high-end plate radiators are imported products. There are not a few domestic users who buy imported brands. They mainly value performance advantages and product appearance. Installation at home is also a symbol of taste. What follows is that more foreign brands continue to squeeze into the domestic market, and even the phenomenon of domestic products OEM, harming the direct interests of consumers.

The analysis of the current situation of the radiator industry pointed out that Chinese radiator manufacturers have no advantage in the steel plate radiator market. However, with the continuous expansion of the Shougang plate radiator market, and domestic brands attach importance to product development, design, and after-sales service, domestic steel The plate radiator competes with foreign brands with advanced technology and affordable prices, so that the advantages of foreign brands in China no longer exist.

1. Small scale and weak brand. 

There are currently more than 2,300 heat sink manufacturers in the China industry. However, they are mainly regional brands and small and medium-sized enterprises and lack influential leading brand companies.

2. Threat of substitutes. 

The vigorous promotion of underfloor heating has allowed underfloor heating to gradually win a larger market development space in some places, which has brought obvious challenges to radiator heating methods.

3. Consumers have a low level of awareness of products and industries. 

The industry lacks professional and unified measurement standards, weak publicity and promotion, low penetration rate of industry and product knowledge, and low consumer awareness and attention to the industry.

At the beginning of 2020, China heating sector began to advocate "steel-based". Steel plate radiators have become mainstream products due to their light weight, high efficiency, material saving and energy saving, beautiful and environmentally friendly, and have been listed as national key promotion products. It is estimated that in the next few years, China heat sink industry will maintain a growth rate of about 7-10% driven by these subdivisions. Above is the analysis of the current situation of the heat sink industry.