Core Insights - The Chinese zinc oxide varistor industry is experiencing rapid growth, becoming one of the largest producers and consumers globally, with a market size of approximately 2.487 billion yuan in 2024, reflecting a year-on-year growth of 10.63% [1][4] - The primary drivers of this growth include the rapid development of the power industry, particularly in smart grid construction and renewable energy integration, as well as advancements in the electronics and communications sectors [1][4] Industry Overview - Zinc oxide varistors are critical electronic components used for overvoltage protection in power systems, characterized by their nonlinear voltage-current properties [2] - The industry is segmented into multilayer chip and disc/radial lead types [3] Industry Chain - The upstream of the zinc oxide varistor industry includes raw materials such as zinc oxide, bismuth oxide, cobalt oxide, and production equipment [3] - The downstream applications encompass power systems, electronic engineering, communication devices, new energy vehicles, and photovoltaic inverters [3] Market Size - The global zinc oxide varistor market is projected to reach approximately 9.157 billion USD in 2024, with a year-on-year growth of 6.64% [4] - The demand for zinc oxide varistors is closely linked to the upgrades and new projects in the power industry, as well as the rapid development of 5G communication, electric vehicles, and industrial automation [4] Key Companies - Major players in the Chinese zinc oxide varistor industry include China XD Group, Jinguang Electric, and Yikun Electric, which hold significant market shares and brand influence [5] - China XD Group has notable technological advantages and market position, contributing to significant projects in high-voltage direct current transmission [5][6] - Jinguang Electric is recognized for its innovations in high-voltage varistor formulations and has achieved breakthroughs in various product lines [8] Industry Development Trends 1. **Improving Voltage Gradient**: Higher voltage gradients in zinc oxide varistors allow for smaller, more efficient devices, achieved through advanced material and structural innovations [9] 2. **Enhancing Energy Tolerance**: Increasing the energy tolerance of varistors is crucial for meeting the demands of modern power systems, focusing on material optimization and structural improvements [10] 3. **Reducing Residual Voltage**: Lowering the residual voltage enhances protection performance, with ongoing research aimed at developing new materials and designs [11] 4. **Developing AC/DC Universal Varistors**: There is a growing trend towards creating varistors that can function in both AC and DC systems, expanding their application range and market competitiveness [11]