Electromagnetic wire is a conductive metal wire with an insulating layer, which is used in coils or windings in electrical products. It uses Faraday's electromagnetic induction effect, using the magnetic field generated by the current or cutting the magnetic lines of force to generate the induced current, so as to promote the mutual conversion between electric energy and magnetic field energy. There are many types of Electromagnetic wire, which can be divided into enameled wire, wound wire, enameled wound wire and inorganic insulated wire according to the type. According to the shape, it can be divided into round wire, flat wire, special-shaped wire, etc. Its downstream market mainly covers home appliances, industrial motors, automobiles and other industries.

01 Flat line technology has obvious advantages

It can be seen from the above that Electromagnetic wire can be divided into round wire, flat wire and special-shaped wire according to the material shape. Round wire technology has experienced hundreds of years of development and is currently the largest and most widely used Electromagnetic wire. However, after the whole wire is rolled into a coil, there will be a stroke gap, and the space utilization rate is not maximized, so the conversion rate of improving the efficiency of the motor has become one of the research hotspots in the industry. In this context, flat wire technology has received widespread attention. Flat wire motors are based on a winding technology Electromagnetic the cross-sectional area of the wire is square, and the cross-section of the winding copper wire is generally rectangular. In the manufacture of the stator support, the windings are hairpin-shaped and inserted into preformed stator slots, and then twisted and combined at the other end to form a complete winding. In the cross section of the square stator, the circular arrangement will leave many gaps, and the square copper wire can completely fill the entire section, which greatly improves the use efficiency of the copper wire.

Flat wire motors can significantly reduce copper consumption. Today, the energy conversion efficiency of permanent magnet synchronous motor is close to 97%, of which about 3% of the motor loss mainly comes from copper loss, iron loss and wind loss. The loss of copper is because the conductor is not completely filled, and the flat wire motor changes the cross-sectional area of the copper wire into a square, which cleverly solves the problem of copper loss and improves space utilization. The substitution trend of flat wire has appeared in the industry, and the first to realize flat wire motor is foreign automobile enterprises. In 2007, flat wire motors were first used by foreign car companies. As early as 2007, Chevrolet Volt was equipped with Magna's flat wire motors. The next Toyota and Nissan also carried electric flat wire motors, and Schaeffler also completed the research on flat wire motors. At this stage, domestic motor factories are also speeding up the research on flat line technology, including SAIC, BYD, BAIC, Great Wall and other enterprises have achieved phased results.

02 traditional enameled wire industry has entered a stable period?

Enameled wire is the core raw material for electrical appliances, motors, electronic power grids and other fields. With the continuous strengthening of the domestic industrial base and the diversification of terminal applications, the traditional enameled wire has experienced a period of rapid growth. Chinese companies already have a comparative advantage in this area, with domestic capacity accounting for 50 per cent of global capacity. Among them, the downstream market mainly includes home appliances, industrial motors, power equipment and the automotive industry.

According to the data, China's demand for enameled wire was 1.68 million tons in 2018, up 2.4 percent year-on-year, and 1.72 million tons in 2019, up 2.3 percent year-on-year, with a slower growth rate. Based on the fact that the two major application areas of downstream household appliances and industrial motors have entered a stable development stage, we expect the national enameled wire to maintain a steady growth state. However, the 5G layout and the development of new energy vehicles are expected to break the original stability and bring new market increments.

03 The arrival of the era of electric vehicles will break the smooth industry

The deterministic trend towards electrification of vehicles and dual motors presents new market opportunities for Electromagnetic wire. The automotive industry is moving towards the era of electric vehicles faster than we anticipated a year ago. In the face of the neo-coronary pneumonia crisis, with solid support from governments and leading automakers, the global market share of electric (including hybrid) cars, SUVs and other light vehicles has grown from 8% in 2019 to 12% in 2020 and will continue to grow in early 2021.

In 2020, China's new energy vehicle sales reached 1.367 million, up 10.6 percent year-on-year; of which, pure electric vehicle production was 940000, up 11.5 percent from the previous year. Against the background of the epidemic to achieve counter-trend growth. The popularity of new energy vehicles will greatly increase the amount of enameled wire. In addition, different grades of electric vehicles have different demands for motors. With the maturity of artificial intelligence, automatic driving and other technologies, the grade of electric vehicles will continue to improve, resulting in more dual motor models. Automotive electrification trend, new energy motors for Electromagnetic wire to bring a broad pure incremental market.

The trend of intelligent driving will increase the use of automotive electronic lines. In traditional fuel vehicles, the starter, generator, wiper motor, solenoid valve, seat motor and other components are the main applications of the motor. In high-end electronic vehicles, more micro-motors will be added to realize the control of various components to meet more high-end and intelligent driving requirements. In addition, the design of communication lines needs to be enhanced in the process of realizing intelligence in automobiles. According to the relevant research results, the new energy vehicle bicycle needs about 10kg of electronic wire. Based on the cost of 100,000 yuan per ton of round wire, the bicycle value of automotive electronics is 600 yuan. With the previous drive motor Electromagnetic wire, the Electromagnetic wire bicycle of a new energy vehicle is worth about 1000 yuan.

At present, the pattern of enameled wire industry is relatively scattered. Data show that in 2019, China's enameled wire industry pattern, the industry leader Jingda shares accounted for 15% of the share, ranked second is Great Wall Technology, the market accounted for 6%. With the continuous development of artificial intelligence, intelligent driving and other technologies and the continuous optimization of the domestic market environment, the enameled wire industry is expected to upgrade with the change of external demand, and the industry concentration is expected to further improve.