With a localization rate exceeding 40%, Inovance Technology ranks first in China's low-voltage inverter market

Data source: MIR DATABANK

01 In 2024, the scale of China's low-voltage inverter market will drop below 30 billion yuan for the first time

According to MIR DATABANK data, the scale of China's low-voltage inverter market in 2024 is about 28 billion yuan, a year-on-year decrease of 7%. It has exceeded 30 billion yuan for three consecutive years since 2021, and fell below 30 billion yuan for the first time in 2024. Looking ahead, it is expected that the scale of the low-voltage inverter market will continue to decline in 2025, but the decline will be smaller. In addition, the recent instability of Sino-US tariff policies will lead to an increase in the export cost of China's low-voltage inverters and intensified market competition, but this will also accelerate domestic substitution and prompt companies to actively expand into emerging markets.

China's low-voltage inverter market size and forecast from 2020 to 2027 (million RMB)

Data source: MIR DATABANK

Demand side:

• In 2024, the demand for most downstream industries of low-voltage inverters will decline, especially in sectors strongly related to real estate, such as elevators and lifting machinery, which together account for 15% of the overall industry, and the decline is more obvious.
• Livelihood-related industries have rebounded due to exports, such as food and beverage, textiles, packaging, and other industries, which together account for 12% of the overall industry, with an increase of about 2-5%.
• Some project-based industries have benefited from policies encouraging equipment renewal and technological transformation, and increased investment, such as chemical, mining, petrochemical, and other industries, which together account for about 11% of the overall industry, driving the growth of some markets.

• Low-price competition strategy: The current market shows a trend of low prices, and various domestic companies have implemented "low-price strategies". In this context, facing the squeeze of domestic (including Hong Kong, Macao and Taiwan) manufacturers and the overall sluggish market environment, some European and American manufacturers have adopted dual response measures: on the one hand, they lowered product prices to cope with price wars, and on the other hand, they launched Chinese localized products to meet the needs of Chinese local customers. At the same time, Japanese and Korean brands are squeezed by domestic and European and American brands, and their competitive advantages are not obvious. To change this situation, some Japanese and Korean manufacturers launched a second brand in 2024 to further strengthen their localization layout in the Chinese market.
• Overall solution strategy: In the fierce market competition for low prices, many domestic manufacturers regard "providing customers with overall solutions" as an important strategy to enhance brand competitiveness, in order to cope with the situation of a low-price volume market of various manufacturers.
• Industry layout: Engineering inverters have become the focus of attention of various manufacturers in the past two years. Many manufacturers have laid out project-based industries and actively expanded their market share to enhance their competitiveness.

• Data center: With the gradual implementation of super-large data centers and intelligent computing center projects, it is expected that the construction demand for data room air conditioning systems will increase significantly, thereby effectively driving the sales growth of supporting low-voltage inverters.
• Shipbuilding industry: Driven by the national energy-saving and environmental protection policies, the shipbuilding industry has developed rapidly and is expected to drive the continued growth of inverter demand in the future.

02 The localization rate exceeded 40%, and Huichuan ranked first

The localization rate of China's low-voltage inverter market was less than 40% from 2021 to 2023, but it has been steadily increasing. In 2024, the localization rate exceeded 40% for the first time. From the perspective of manufacturers' performance, domestic manufacturers have continued to seize market share with their strong competitiveness, which has caused the market share of European, American, Japanese, and Korean manufacturers to drop by about 1%.

Proportion of Chinese low-voltage inverter manufacturers by type in 2023-2024 – Sales

Data source: MIR DATABANK

Domestic manufacturer - Inovance Technology: In 2024, Inovance will become the first in China's low-voltage inverter market for the first time. Based on the market strategy, Inovance adjusted its organization, strengthened the "battle zone operation" mode, and adopted the "industry + battle zone" collaborative operation mode. Through the battle zone operation mode and with the help of channel power, Inovance has penetrated the segmented product clusters and individual customer groups in the regional market, and successfully seized many customers and market share with system solutions and high-quality services.

European and American manufacturers- Siemens: Focus on the needs of the Chinese market and develop a localization layout.

• Release 18 new products: On March 25, 2025, Siemens held the "China Acceleration 2.0" innovation product launch conference, at which 18 new industrial automation and digitalization products for the Chinese market were launched at one time. Among them, 16 products were developed in China, covering low-voltage inverters (SINAMICS V20 3AC 400V), PLC (S7-1200 G2++), servos (SINAMICS S200/B/C), and other categories.
• Behind the new products, Siemens' organizational structure has also changed: in October 2024 (the first quarter of Siemens' new fiscal year in 2025), Siemens established the China Innovation Products Division (CNP). Compared with the 2024 fiscal year, Siemens increased its R&D investment by 67% for the research and development of localized products in China, and plans to launch new products and solutions on a quarterly basis. The 18 new products launched at one time are the first batch of results of the plan.
• Siemens has also strengthened its local supply chain: On March 24, 2025, the new factory of Siemens Electromechanical Technology (Jiangsu) Co., Ltd. was officially put into operation. The factory is mainly responsible for the production of motors and drive equipment, and its products will not only supply the Chinese market, but also be exported to more than a dozen countries and regions.

Japanese and Korean manufacturer - Mitsubishi Electric: In 2024, Mitsubishi Electric launched the localized brand "Lingling" to cope with the fierce competition in the domestic market with a localization strategy. The Lingling brand is precisely positioned in the mid-to-low-end market. Mitsubishi Electric hopes to compete head-on with domestic brands in the mid-to-low-end market through this brand and regain the previously lost market share. At present, Lingling brand products are mainly concentrated in the fields of inverters, servo motors, input and output modules (IO), etc.