The National State Grid has accelerated the construction of UHV power grids, and the power equipment industry such as high-voltage switches is facing development opportunities. Although the increased market competition and fluctuations in raw material prices have had a significant impact on the industry’s profit levels. The rapid development of China's industrialization and urbanization has contributed to the continued growth of electricity demand.

During the "Twelfth Five-Year Plan" period, China's power industry will accelerate the construction of the "Sanhua" ultra-high voltage AC synchronous power grids in Central, North and East. In the next five years, the State Grid plans to invest 1.6 trillion yuan to build 100 smart substations of 110kV and above. The smart grid will be basically completed in China, and the transmission and transformation equipment manufacturing industry will develop towards the direction of intelligent high-end development. The high-voltage switch and other power equipment industries are also reaching a very good development period. With the development of industrialization and urbanization in modern society, the demand of the power industry is also growing rapidly. At present, China is dominated by power equipment manufacturers in central China, with more than 10 Sino-foreign joint ventures and about 50 other domestic enterprises.

In recent years, large international power transmission and transformation equipment companies have accelerated the localization process in various ways. Its brand advantage occupies a certain market share in the field of voltage level switches of 550kV and below, and the market advantages of the three traditional switch companies have weakened. At the same time, some domestic private enterprises have gradually entered the field of medium and low voltage power transmission and transformation equipment. Some enterprises have developed into the field of high-voltage and ultra-high-voltage equipment manufacturing. Market competition has become fiercer, and industry profitability has declined. Cables and wires using copper and aluminum as raw materials account for a large portion of the production cost of power equipment. Fluctuations in the prices of raw materials such as copper and aluminum pose certain challenges to the cost control of power equipment manufacturers. From 2009 to 2011, the average monthly price of electrolytic copper rose from 28,909.00 yuan / ton in January 2009 to 71,577.00 yuan in April 2011, an increase of 147.59%. The increase in raw material prices has increased the burden of production costs for power equipment manufacturers. In October 2011, the price dropped to 55964.00 yuan per ton. Until March 2013, the price of electrolytic copper slowed down, and the average monthly price fluctuated slightly, about 57166.41 yuan / ton. Moreover, in 2012, the prices of raw materials used have also decreased, alleviating the costs of manufacturers.