China's Composite Moving Contact Industry Accelerates Its Rise in 2025: Technological Iteration And Scenarios Expanding Active Growth Potential

Driven by the explosive growth of the new energy industry and the upgrading of intelligent manufacturing, China's composite moving contact industry is entering a fast track of high-quality development, becoming a key growth point in the core components of low-voltage electrical appliances. As of 2024, the domestic market size had exceeded RMB 6.8 billion, accounting for 29% of the global market share, with a compound annual growth rate of 7.3% compared to 2021. Large-scale applications in new energy vehicle electronic control systems, smart grid equipment, and industrial relays have become the core driving force. Among these, the demand from the industrial automation sector increased from 19% in 2022 to 27% in 2024, with Moving Silver Contact and Silver Alloy Moving Contact for high-voltage switches becoming the main drivers of demand growth.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In terms of technological research and development, the industry continues to break through material and process bottlenecks. Composite moving contact products, through their embedded substrate groove and embedded electrical contact layer structure design, solve the pain points of traditional products, such as easy edge cracking and insufficient bonding strength, while reducing the amount of precious metals used by up to 23%, significantly lowering production costs. Breakthroughs have been achieved in the contact resistance control technology of Electrical Moving Contact, with the fluctuation range reduced to ±4%, and the arc erosion resistance life improved by 40% compared to three years ago. On the production side, the widespread adoption of precision molding processes and intelligent testing equipment has boosted product yield to 97.8%, with nano-level surface treatment technology covering 35%, further optimizing conductivity and wear resistance.

 

Application scenarios are showing a diversified penetration trend. Relay Moving Contact has achieved large-scale application in industrial control relays, Silver Contact for Switch/Relay adapts to the high-frequency switching needs of smart home appliances, and Contact Tips (for Relays/Switches), with its stable arc extinguishing performance, has become a core component of DC contactors for new energy vehicles. In smart grid transformation projects, composite moving contact products, with their resistance to humidity and heat and vibration, are suitable for harsh outdoor conditions. In 5G base station power systems, lightweight moving contact products effectively improve equipment operational stability. Furthermore, the proportion of customized products continues to increase, with the annual growth rate of demand for high-temperature resistant, low-power composite moving contacts for special scenarios exceeding 12%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy and market environment provide dual support. The "14th Five-Year Plan for the Development of the Electrical Industry" explicitly proposes to promote the domestic substitution of composite contact materials. Related technological upgrading projects of the Ministry of Industry and Information Technology have driven the industry's R&D investment intensity from 2.3% to 3.6%. The "Technical Specification for Composite Contact Materials," implemented in 2024, further standardized core indicators such as arc erosion rate and mechanical life, pushing the industry's quality pass rate to 88.5%. Facing the risk of precious metal price fluctuations, the industry is accelerating material recycling and formula optimization, reducing reliance on silver materials through silver alloy doping modification technology, and expects to achieve a 15%-19% reduction in unit product costs by 2025. Looking ahead to 2026, industry research institutions predict the market size will exceed 9.5 billion yuan, maintaining a compound annual growth rate of 7.8%.

 

The application share in the new energy sector is expected to rise to 34%, with emerging scenarios such as hydrogen energy equipment and industrial robots driving demand for new types of Silver Moving Contacts. Technological innovation will focus on miniaturization (minimum thickness of 0.3mm) and high voltage resistance (compatible with 1500V DC systems), achieving further breakthroughs in reliability and environmental friendliness for Moving Contact products. As the global electrical equipment industry shifts to China, the domestic composite moving contact industry, leveraging its technological iteration and cost advantages, is expected to occupy a more central position in the global supply chain, promoting the cluster development of related Electric Contacts industries.