The latest release of CMIC (China market intelligence center): since the 1990s, China's heat shrinkable material industry has entered a period of rapid development. In 2010, there were about 180 heat shrinkable material production enterprises with a certain scale in China, achieving a total industrial output value of 8.15 billion yuan. It is expected that the total industrial output value will reach 12.6 billion yuan by 2015.

Figure: Output Value Forecast of China's heat shrinkable materials industry from 2008 to 2015 (million yuan)

Heat shrinkable materials for electronics and electric power are the leading products of heat shrinkable materials in China. There are many manufacturers of electronic heat shrinkable materials in China, but they mainly focus on low-end market competition. Benefiting from the growth of China's power grid investment scale, the market demand for heat shrinkable materials for electric power is strong. It is expected that the output of heat shrinkable cable accessories in China will reach 9.75 million sets in 2011, and the market capacity of heat shrinkable materials for electric power will reach 2.03 billion yuan.

China's automotive heat shrinkable material market is mainly occupied by American Raychem and Sumitomo Electric, and domestic enterprises only account for 20% of the market share. However, with the comprehensive certification of domestic heat shrinkable materials in the automobile industry and the advantages in price, the market share of domestic heat shrinkable materials for automobiles is expected to be further increased.

American Raychem, Changyuan group and Wal Mart nuclear materials Co., Ltd. accounted for 66% of China's heat shrinkable material market in 2010. Raychem is the world's largest manufacturer of heat shrinkable materials. Its main products include heat shrinkable sleeves, communication cable accessories and heat shrinkable cable accessories. Its heat shrinkable products monopolize most of the international market. Especially in the application of aerospace and military fields, Raychem has an absolute competitive advantage.

Changyuan group mainly produces heat shrinkable sleeves for electronics, automobiles and oil and gas pipelines, and maintains the first position in China and the second position in the world in the heat shrinkable material industry. In 2010, the capacity of heat shrinkable casing of Changyuan group was 1.64 billion meters, and the business income of heat shrinkable materials was 647 million yuan, of which the sales income of heat shrinkable materials for high-speed railway was 80 million yuan. As the only enterprise with high-speed railway heat shrinkable materials certification in China, it is expected that this field will become a new profit growth point of Changyuan group.

Wole nuclear material is an important heat shrinkable material production base in China, mainly producing heat shrinkable products for electronic and electric products. In 2010, it sold 1.15 billion meters of heat shrinkable tubes for electronic products, ranking first in China for three consecutive years. In 2011, with the commissioning of the new production capacity project of Wal Mart nuclear materials, the production scale will be greatly increased