China's charging pile industry has great potential but faces entry barriers

1. Analysis of Competition among Existing Enterprises

Price reduction, new product development or service quality improvement are the main modes for existing industry competitors to participate in market competition. Because the charging pile industry is a new industry, at present, every enterprise is still in the initial stage of technology research and development, technology is not mature, production scale and consumption market are relatively small, and production costs are relatively high. Competition among existing competitors mainly focuses on the strength of technology research and development and production costs, especially the stability of equipment work and the high cost-performance ratio. Technical indicators. OFweek Industry Research Center: At present, there are many manufacturers of charging pile equipment, many kinds of charging pile, the market is in the stage of development, has not been fully developed, the development potential is huge, so the existing industry competition situation is fierce. Moreover, various countries have issued new energy vehicle development strategies and national plans, further pointing out the direction of development for the industry, charging pile industry has also been highly valued, R&D investment has increased sharply, the expectation of breaking through the technical bottleneck of electric vehicles has been greatly enhanced, which has greatly accelerated the pace of the electric vehicle industry, as a sunrise product, although its current competitive situation is not very fierce. But competition is growing.

2. Analysis of potential entrants

The so-called potential entrants may be a newly established enterprise or a former enterprise engaged in other industries with diversification strategy. The potential entrants will bring new production capacity and demand a certain market share. The threat of potential entrants to the industry depends on the entry barriers of the industry and the intensity of the reaction of the original enterprises after entering the new industry. The main factors influencing the threat of intruders are barriers to entry, investment capital requirements, cost advantages, sales networks and so on. Li GUOQING, a senior researcher in the new energy automobile industry of OFweek, believes that the entry of the charging pile industry requires not only investment and accumulation at the technical and capital levels, but also approval and approval from relevant state departments on production, research and development, sales and other aspects at the policy level, so it has a high access threshold. In addition, because the charging pile industry is a new high-tech product, the output is relatively small, the relative production cost is relatively high, so the cost of sales and technical support is relatively high, which also forms an industrial barrier. This creates barriers to entry for potential intruders. Moreover, for equipment operators, the knowledge of high-tech new products is often concentrated on the most advanced enterprises entering the market, so it is more difficult for potential intruders to improve their market awareness. In short, due to the high barriers to entry, large capital demand and small absolute cost advantage, the potential intruders in the charging pile equipment industry are relatively less threatened.

3. Threat Analysis of Substitutes

OFweek Industry Research Center: Unless there are other new energy vehicles that can replace lithium batteries. From the current development situation, hydrogen fuel cell vehicles are less commercialized in the market due to various reasons. As for other alternative threats, we do not see them at present, so the alternative threats faced by the charging pile industry are relatively small.

4. Analysis of Vendor's Bargaining Ability

The suppliers of charging pile equipment are mainly composed of suppliers of electrical equipment products and other electronic components. The bargaining power of suppliers is determined by the following aspects: 1. the number of suppliers available, 2. the difference and uniqueness of products, 3. the choice of alternative products, 4. the price of products, 5. the quality of products and the level of after-sales service.

Li GUOQING, senior researcher in the new energy automotive industry of OFweek, believes that the bargaining power of suppliers in these industries is relatively weak, because the traditional electrical equipment industry and electronic components industry have been very mature, there are a large number of suppliers in the market, and there are many component suppliers available for charging pile manufacturers. Therefore, manufacturers of charging pile equipment can make full use of these factors of component suppliers, while suppliers' bargaining power is relatively weak, thus improving their bargaining power.

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