The construction of power grid in China falls behind that of power plants. The ratio of PTD assets to power generation assets was only 38:62 by the end of 2005, while the similar ratio in developed countries is typically 60:40. To redress the regional imbalance between supply and demand of power, China began to increase investment in power grid construction in 2006. Then in 2007, the investment reached RMB267.8bn, accounting for 48.8% of the total investment in power industry, while the similar percentage was 31.1% in 2005. This showed that China is improving the situation of its power industry.

Table: Scale of Investment by China in Power Grid Construction 2006-2010

With the incentive governmental policies, the total investment in power grid in China is expected to reach RMB1, 662.3bn 2006 through 2010, with the compound annual growth rate (CAGR) of 15.3%. And of the total investment, Southern Grid would account for RMB298.6bn, with the CAGR of 14.5%, while State Grid RMB1,363.7bn, 19.0%.

The increasing investment in power grid construction has greatly promoted the PTD subsectors. According to China National Bureau of Statistics, the total revenue of 5,426 companies in China's PTD equipment industry achieved in 2007 was RMB508.3bn, increasing by 32.5% year-on-year, while the gross profit was RMB37.6bn, up by 35%. And the investment in 2008 is still increasing rapidly, and market demand strong. The similar revenue of 2008 is expected to reach RMB670.9bn, up by 32% year-on-year, while the gross profit RMB52.3bn, 39%.

PTD equipment falls into two categories: primary equipment and secondary equipment. The former refers to the equipment used directly for power transmission, distribution and use, for example, control devices, breakers, switches, transformers, cables etc, while the latter the equipment helping stabilize and control primary equipment, for example, the automation control system. In China there are a lot of primary equipment producers, thus that the competition is fierce in that field. But the higher the voltage grade is, the fewer the companies can get in the field, and the more the field is monopolized, especially equipment for UHV grade, which is dominated almost exclusively by the few multinational giants or their branches in China. As for secondary equipment, only very few China's homegrown companies can deal with it, especially equipment for HV grades, of which the producers are even fewer. As a result, profit in HV fields is higher.

While elaborating on the development environment, business operation, supply and demand, competitive landscape, niche markets and other aspects of China's PTD equipment industry, this report compares the status quo and future of the leading market players in the country. And as it is necessary, this report also provides in-depth analysis of the development trend and investment potential of China's PTD equipment industry.