Micro switch industry market structure

my country is a big manufacturing country with a complete industrial system. As one of the basic electronic component products, the micro switch has basically achieved nationalized production. Micro switches have a wide range of applications, not only in precision manufacturing industries such as medical instruments and aviation equipment, but also in industries with relatively low technical content such as toy manufacturing. Due to the wide application field of micro switches, various product types, and varying degrees of process complexity, there are many micro switch manufacturers in the industry. The mid-to-low-end market of micro switches has large capacity and low entry barriers. There are a large number of small-scale and homogeneous enterprises, and the industry concentration is low. Such enterprises often have problems such as backward production equipment, insufficient large-scale production, and insufficient technology accumulation, and it is difficult to effectively control the product quality. It is mainly used in low-end toys and other products that do not require high quality of micro switches. Such enterprises participate in market competition through low-price strategies, resulting in particularly fierce competition among manufacturers at this level, and they are in a weak position in the industry competition.

Mid-to-high-end microswitches are mainly used in household appliances, medical instruments, aviation devices, etc. These microswitch products have high technical content and high industry concentration. For example, some micro switch products are used in medium and high-end fields such as household appliances and passenger cars. The home appliance and automobile industries have high requirements on the safety and durability of microswitches, and at the same time, they put forward high requirements on the research and development capabilities and product quality of microswitch manufacturers. With the improvement of people’s living standards, the concentration of the home appliance industry is also rising, and consumers are increasingly favoring home appliances of big brands, and home appliance manufacturers of big brands often have high-quality and customized requirements for micro switches. It can be seen that with the development of the home appliance and automobile industries becoming more and more mature, the industry concentration of the mid-to-high-end micro switch market continues to increase, and the advantages of large-scale micro switch manufacturers will become more obvious.

Post time: Jul-26-2022