Domestic inductors will create a new trillion-RMB market.

In the 3C electronic products sector, inductors, capacitors and resistors are regarded as the three core electronic components. In the PCB circuits constructed with these components, the inductor, which is composed of magnetic core materials and coils, although seemingly insignificant, plays a crucial role in ensuring the stable operation of modern circuits. Whether it is to ensure the smooth operation of smart phones, or to assist in the stable driving of new energy vehicles; whether it is to achieve efficient transmission of 5G base stations, or to achieve precise control of smart homes, inductors, with their core functions of "filtering, energy storage, and anti-interference", have already become the mainstay supporting the development of the electronic information industry.

1. Domestic inductors will give rise to a market worth hundreds of billions of yuan.

The application of inductors covers almost all electronic devices. According to previous statistics, the market size of inductors in China reached 42.074 billion yuan in 2023, an increase of 7.14% compared to 2022. And it is expected that by 2030, the market size will successfully exceed 65.954 billion yuan. The strong growth momentum mainly comes from the following three directions:

The popularization of 5G base stations and IoT technology: With the advent of the era of high-frequency communication, more stringent requirements have been imposed on the miniaturization and high-frequency characteristics of inductors. Taking mobile phones as an example, the amount of inductors used in a single 5G phone has increased by more than 30% compared to 4G phones.

The rise of domestic new energy vehicles: The number of inductors used in an electric vehicle exceeds 1,000, and they are widely applied in key systems such as battery management, motor drive, tire pressure detection, intelligent cabin, key, and central control screen. At the same time, due to the special working environment of electric vehicles, the requirements for the reliability and high-temperature resistance of inductors are extremely strict.

The iteration of AI technology: The high-performance development of AI has led to increasingly higher power requirements for GPU power supplies and server power supplies, and the current demand for inductors' current has also been continuously rising, reaching a level of 100A. This has caused the unit price of inductors to keep increasing.

2. The Transformation of Domestic Inductors from Followers to Leaders

Although the demand for inductors is strong, the Chinese inductor industry has been severely constrained by technical barriers for a long time. International industry giants, such as TDK and Murata, have firmly occupied the high-quality inductor market by leveraging their material innovation and leading-edge advantages. However, domestic enterprises started later and had to find alternative approaches, starting from model substitution.

Material and process innovation: Through continuous research and development of magnetic ring materials such as manganese-zinc powder and carbonyl powder, the inductance characteristics have gradually caught up with international advanced levels, and the price has been reduced by 54% compared to imported models.

Automated production: For models with high demand, such as NR magnetic tape inductors, CD inductors, and I-beam inductors, with the assistance of mature automated equipment, the prices have been significantly reduced, making domestic inductors more cost-effective.

3. Upstream and downstream collaboration for innovation in the domestic inductor industry

The selection of inductors is extremely complex, with over ten thousand different models available. It involves factors such as magnetic cores, enameled wires, package sizes, performance characteristics, and installation methods. With a wide range of inductor models to choose from, the rapid rise of China's inductor industry is inseparable from the deep collaborative cooperation throughout the entire industrial chain.

1. Upstream material domestication: Currently, key materials such as magnetic cores have achieved 90% domestic substitution, and compared to imported products, the cost has been reduced by 30%.

2. Downstream applications feed back to innovation: The customized demands put forward by domestic mobile phone and domestic new energy vehicle manufacturers have, in turn, driven the development of large current inductor products by inductor enterprises, thereby promoting significant breakthroughs in inductor technology.

3. Regional Cluster Effect: The Yangtze River Delta and Pearl River Delta regions have established large-scale electro-inductor industrial clusters. The number of supporting enterprises in the surrounding areas exceeds 20,000, and they have successfully implemented a "one-hour supply chain" rapid response mechanism.

4. Challenges and Development of Domestic Inductors

Increased competition: The entry barriers in the inductor industry are not high, and there are numerous enterprises participating in the competition. Some enterprises resort to low-price competition and the use of finer wire diameters, etc., which has led to a significant increase in the heat generation of inductors.

Higher integration: Through the modular design concept, the components such as inductors, capacitors, and resistors are effectively integrated to better meet the "lightweight" development requirements of intelligent terminals.