China Searun Solar Solution Co., Ltd. , https://www.srsolarlights.com
In 2012, the second phase of the State Grid's smart grid investment and construction entered a comprehensive development stage. Thanks to the national push for smart grid initiatives, the power line communication (PLC) chip market in China experienced rapid growth, with sales rising by 45.5% and revenue increasing by 56.6%. Meanwhile, applications such as IoT-based smart homes, smart security systems, and broadband networks also contributed significantly to market expansion, making the domestic PLC chip market a key driver of growth.
The strong demand for smart meters played a crucial role in driving market growth. As one of the world’s largest electricity meter manufacturers, China saw steady growth in its meter shipments. In 2012, the total output of electricity meters reached 110 million units, with over half being smart meters. The State Grid accelerated procurement of smart meters, concentrators, and data collectors, leading to a 56.6% year-on-year increase in smart meter chip shipments—reaching 53.339 million units. The PLC chip market size hit 770 million yuan, reflecting a 45.5% annual growth. With the gradual adoption of IoT technologies like smart homes and security systems, demand for PLC chips is expected to rise even further.
A major technological shift has been the rise of SoC (System on Chip) solutions. Early ammeter designs used multi-chip combinations, with separate components like microcontrollers, carrier chips, amplifiers, and memory installed on the mainboard. However, advancements in SoC technology have allowed manufacturers to integrate MCU, low-noise amplifiers, A/D and D/A converters, digital clocks, tuners, and memory into a single package. This not only reduces the chip’s footprint but also lowers power consumption and manufacturing costs, making it a preferred choice for future smart meter designs. While most domestic solutions still rely on multi-chip setups, companies like Neusoft have started to lead the transition toward SoC-based solutions, signaling a shift in industry standards.
The domestic PLC chip market remains highly concentrated, with a CR4 (Concentration Ratio) exceeding 92%. Four major players—Qingdao Dingxin, Neusoft Carrier, Fuxing Xiaocheng, and Miia Microelectronics—dominate the market. Globally, Broadcom (which acquired Atheros) holds a significant share. However, foreign suppliers have struggled to penetrate the Chinese market due to high prices and inadequate technical support. Domestic firms, with their cost-effective solutions and strong local service, have maintained a firm grip on the majority of the market.
Looking ahead, the PLC chip market is projected to surpass 1 billion yuan in 2013. Despite continued growth, the rate of expansion is expected to slow slightly as the market matures. In terms of application structure, power management still accounts for the largest share, though its proportion may drop to 78% in 2013 due to slower smart meter tender growth. On the other hand, security monitoring applications are expected to grow steadily, driven by the “Safe City†initiative. Smart home solutions are also gaining traction, moving from high-end to mid-range residential markets. Meanwhile, industrial applications show modest growth, and overall market share distribution is expected to shift slightly.
In the broadband network sector, power line communication (PLC) chips are primarily used in electric broadband modems. Although China Unicom has experimented with deploying these devices in cities like Nanjing and Beijing, progress has been slow due to unstable voltage levels in the power grid. Voltage fluctuations during peak hours often cause network disruptions, limiting widespread adoption. However, as power grid stability improves, the market for PLC-based broadband access may see some growth, albeit constrained by competition from fiber-to-the-home technologies. As a result, the share of broadband applications in the PLC chip market is likely to decline gradually.