Good News on Listing | Frost & Sullivan Congratulates SSGC Technology (Hangzhou) Co., Ltd. on Successfully Listing on the Sci-tech Innovation Board (688583.SH)

Sikankan Technology (Hangzhou) Co., Ltd. (hereinafter referred to as 'Sikankan Technology') successfully went public on January 15, 2025, with an issue price of 33.46 yuan per share and an issued quantity of 1,700.00 million shares.

• The company has outstanding core technologies, and its products possess a high moat;

   

• The company's downstream applications cover a wide range, and it has a comprehensive solution matrix;

   

• The company has established a scale and first-mover advantage in the domestic handheld 3D scanning market;

   

• The company has extensive customer resources and a sales network;

According to a report by Frost & Sullivan:

Based on 2022 sales, in the manual 3D vision digitization product market, the company is the largest handheld and tracking general-purpose 3D vision digitization product enterprise in China, holding a market share of 16.3% in the Chinese market.

3-Dimension Digitalization, also known as '3D digitization technology', refers to the use of 3D tools (software or instruments) to achieve virtual creation, modification, improvement, analysis, and other digital operations of models. This serves to meet users' needs in various application fields. 3D digitization obtains the external shape data of objects through equipment and instruments, processes and splices the obtained data information, and manipulates it through modeling to seamlessly integrate isolated single-view 3D digital models. After texturing and rendering, it forms 3D data files.

Compared to 2D imaging, 3D digitization can 1:1 restore the three-dimensional spatial dimensions of real objects, comprehensively display the spatial data structure of objects, and facilitate users to observe their appearance from multiple perspectives and obtain a more comprehensive and accurate understanding. Over the past few years, 2D imaging technology has made mature and significant progress, with resolution increasing from hundreds of thousands of pixels to hundreds of millions of pixels, and the accuracy of color restoration has also been significantly improved; however, 2D images can only provide texture information in spatial planes and cannot provide the multi-dimensional information such as spatial morphology, geometric dimensions, and pose required for more precise recognition and tracking functions. 3D digitization fully compensates for the shortcomings of 2D imaging technology in terms of insufficient spatial dimension data and information, and can be used to implement more complex and intelligent functions.

Three-dimensional digital products refer to devices that can collect three-dimensional data and information of real objects using traditional contact sensing technology or modern optical technology, and can convert them into three-dimensional digital models. This mainly includes traditional three-dimensional measurement products and three-dimensional visual digital products.

Traditional three-dimensional measurement products are mainly represented by coordinate measuring machines, which are high-precision measuring instruments. The basic principle is to place the part to be measured into its allowable measurement space, and through the contact of the front-end probe or probe tip with the object being measured, the sensor receives force feedback. It then precisely measures the three coordinate values of the measurement points on the object. Based on these point values, computer data processing is used to construct relevant three-dimensional elements. Coordinate measuring machines are typically used for the measurement of precision mechanical parts, consumer electronics components, etc. At the same time, the size of the measured object is limited by factors such as the allowable measurement space and the range of probe movement.

Three-dimensional vision digitization products refer to technical devices that rely on optical principles, typically without direct contact with the object. They involve scanning the object in various ways to identify the three-dimensional coordinate information of each point within the field of view. This allows the computer to obtain three-dimensional data of space and convert the physical object's three-dimensional information into a three-dimensional digital model, along with supporting three-dimensional data processing software.

In the future of digitalization of everything, with the continuous development of downstream application fields for three-dimensional digital products including industry and non-industry sectors, emerging fields such as virtual worlds, digital twins, artificial intelligence (AI), 3D printing, Internet of Things (IoT), and personalized customization are continuously expanding and extending the application scenarios of three-dimensional visual digital products. At the same time, considering the product iteration and upgrading driven by the continuous improvement of the technical level on the supply side of three-dimensional scanning products, as well as the global urgent need for transformation and upgrading in the intelligent equipment manufacturing industry, the market scale of three-dimensional digitalization will show a rapid growth trend. It is expected that over the next five years, the market scale of three-dimensional digitalization will still mainly rely on traditional contact-based three-dimensional scanning measurement technology. Considering the advantages of optical-based non-contact three-dimensional scanning measurement technology and the increasing demand for automation systems in industrial manufacturing, it is estimated that the market scale of three-dimensional visual digitalization will continue to grow at a faster rate in the future.

Globally, the revenue from the global 3D digital product market in 2022 was approximately 50.06 billion yuan, of which the global market size for 3D visual digital products in 2022 was 12.29 billion yuan. It is estimated that the global 3D visual digital product market will grow to 40.01 billion yuan by 2027, with a compound annual growth rate of 26.6%. By product type, in 2022, manual products accounted for about 47.5% of the global 3D visual digital products, amounting to approximately 5.84 billion yuan. Considering the portability and other advantages of manual products, as well as the rapid growth in downstream application fields, it is expected that by 2027, the proportion of manual products in the global market will exceed 50%, with a market size reaching approximately 20.5 billion yuan.

Global market scale of 3D vision digital products by major product type

In 2022, the sales revenue of China's three-dimensional digital products market reached 7.16 billion yuan. Among them, the market scale of three-dimensional vision digital products in China in 2022 was 1.49 billion yuan, and it is expected to grow to 6.03 billion yuan by 2027. In terms of product types, manual three-dimensional vision digital products accounted for about 52.3% of the market in 2022 due to their flexibility in use, portability, diversity of applicable scenarios, and competitive prices. Moreover, with the continuous improvement of intelligent manufacturing levels in future industrial production, the market demand for automation systems will also grow rapidly.

Market scale of 3D vision digital products in China by major product type

●Diversification of downstream applications and growth in demand from non-industrial sectors

In recent years, 3D digitization and 3D scanning technologies have rapidly popularized in many non-industrial fields. The downstream market shows a diversified trend, with the non-industrial sector represented by digital products for all things developing rapidly. In addition to traditional scenarios such as healthcare, education and teaching, and art and cultural relics, the rapid development of emerging fields such as 3D printing and virtual worlds has continuously created new market demands for 3D visual digital products. In the non-industrial application sector, the main downstream applications include education and teaching, medical devices, etc. In 2022, education and teaching and medical devices accounted for approximately 11% and 7% of the overall market scale respectively. In the future, with the rapid growth in demand for 3D scanning technologies in fields such as medical rehabilitation, vocational education, virtual reality, art and cultural relics restoration, the market's demand for efficient, portable, and cost-effective 3D scanning equipment will significantly increase, and the market in non-industrial application sectors will thrive.

In the medical field, 3D scanning technology has a wide range of application scenarios and significant market demand across various application areas such as medical aesthetics, biomedical engineering, orthopedic prosthetics, and digital dentistry. Taking digital dentistry as an example, 3D vision digitization products applied in the oral field, combined with professional dental 3D printing equipment, provide doctors and patients with a complete set of digital dental solutions, significantly improving the efficiency of dental product manufacturing. Additionally, it can eliminate the complex processes and manual errors of traditional techniques.

In the field of teaching and research, 3D visual digitization, as a cutting-edge technology that is currently a concern for both academia and industry, has seen well-known universities and research institutions such as Tsinghua University and the Chinese Academy of Sciences setting up research projects in this direction. They focus on studying the application and technological innovation of 3D visual technology in different subfields such as 3D reconstruction, 3D perception, and 3D recognition. The continuous development of the education industry and the breakthroughs in scientific research related fields will also lead to greater demand for products and applications in this field.

In the field of virtual reality, by flexibly utilizing 3D scanners, the technical threshold for 3D modeling can be effectively reduced. This helps to create fully realistic and holographic 3D content, allowing development teams to skip the time-consuming modeling process. It enables the accurate presentation of target objects' data, shape, structure, and texture, which can be applied to subsequent quantitative analysis. This can effectively assist teams in accelerating their development progress.

In the field of cultural relic restoration, 3D scanning can digitize cultural relics and use software for virtual restoration, which serves as a basis to improve real restoration plans. In the field of home digitization, 3D visual digital products can be widely applied in scenarios such as furniture design, online display, and product customization. By 3D modeling home products, the efficiency of modeling can be improved. Virtual reality technology enables remote display of interior decoration, providing a good foundation for real estate companies, internet home decoration companies, and other enterprises to develop VR home decoration, AR home shopping, and other business formats.

● Domestic 3D vision digitalization products are gradually replacing overseas brands

In the field of laser 3D scanners, due to the early start by foreign manufacturers, overseas companies represented by CREAFORM have a leading position in software and hardware R&D capabilities. In the past, due to the lack of deep technical accumulation in domestic 3D laser scanners and slow technological breakthroughs in models, many large manufacturing enterprises chose to purchase imported 3D vision digital equipment from abroad. However, the high prices of foreign products restrict the procurement by many domestic enterprises.

In recent years, with the continuous rise of domestic manufacturers of 3D vision digitization equipment, the pace of technological progress has been continuously accelerating, and the investment in independent innovation by enterprises has been increasing. Domestic manufacturers have achieved breakthroughs in many core technology paths in a relatively short time, with market share continuously rising. With the rapid development of technology, some powerful enterprises in the field of handheld 3D laser scanners have emerged. Handheld products have gradually approached or even surpassed developed countries in terms of scanning accuracy, operational convenience, and algorithms, and domestic brands have gained recognition from a large number of downstream customers. Today, the related technologies for domestic handheld 3D vision digitization products can fully meet the production and inspection needs of the vast majority of enterprises. At the same time, domestic brands have a more obvious cost-performance advantage, making them more attractive to small and medium-sized manufacturing enterprises with limited budgets, as well as many manufacturing and R&D customers who have low environmental requirements and high portability. The trend of domestic 3D scanners replacing overseas brands is gradually increasing.

In the future, with the continuous breakthroughs in domestic brand technology, strong price competitiveness, and the accumulation of rich cases and service experience in local customer service, the substitution effect of domestic brands is expected to continue.