China High-End Instruments, Testing and Measurement & Control Innovation and Development Forum
11month16 - 17day,2023The High-End Instruments and Testing, Measurement & Control Innovation and Development Conference was grandly held in Wuxi.
The conference is themed 'Innovation Collaboration, Self-reliance and Self-improvement', widely inviting forces from central enterprises in the instrumentation field, high-level universities, research institutes, private enterprises, financial institutions, etc., to jointly discuss deepening the innovation-driven development of the instrumentation industry and industrial collaboration, exploring new business forms that integrate various innovation elements; expanding the broad development space for major national strategic needs and economic battlefields, consolidating common foundations, aggregating 'four chains' resources, and strengthening the strategic scientific and technological strength of instrumentation through a new approach.
11month16On the afternoon of the same day, Frost & Sullivan analyst Wen Shang was invited to give a speech at the China High-End Instruments and Testing & Measurement Innovation Development Forum under the theme of 'Strong demand for autonomy and control, and opportunities for domestic substitution of mid- to high-end electronic measuring instruments'.
Frost & Sullivan analyst Wen Shang
The report points out that the Chinese electronic measurement instrument market is one of the fastest-growing markets in the global market. Affected by favorable factors such as the booming downstream new energy vehicle market and the continuous advancement of digital and intelligent reforms in manufacturing, the scale of the Chinese electronic measurement instrument market2018Year-end2022Year-on-year at a high12%The annual compound growth rate has increased.2023In [year], affected by fluctuations in downstream consumer electronics and semiconductor markets, the growth rate of the Chinese electronic measurement instrument market slowed down. However, it is expected that the overall market size will still be within2023Year-end2027Exceeding10%The annual compound growth rate continues to rise.
Judging from the investment and financing situation, the annual investment and financing of China's instrumentation industry30 - 50Between. Due to2021The year marks the beginning of the '14th Five-Year Plan' period, with active implementation of policies for domestic substitution of mid- to high-end products, and a high level of investment and financing interest in instrumentation. Currently, the instrumentation industry is in its early stages of financing.AMost are wheel and angel round financings, with the majority of financing enterprises located in Guangdong Province and Jiangsu Province. Specifically in terms of investment and financing for electronic measuring instruments:2022In 2023, the market heat rose slightly due to industry impacts. Currently, the heat is not high, but it is also a good time for bottom fishing.
In US dollars, the market size of China's electronic measuring instrument industry is2018 - 2022The annual compound growth rate for the year12.0%Among them, the oscilloscope segment has the fastest growth rate, with an annual compound growth rate of14.9%.2023In [year], affected by fluctuations in downstream consumer electronics and semiconductor markets, the growth rate of China's electronic measurement instrument market slowed down. However, with favorable factors such as the booming development of the downstream new energy vehicle market and the continuous advancement of digital and intelligent reforms in manufacturing, the overall market scale is expected to remain at2023Year-end2027Exceeding10%The annual compound growth rate continues to rise.
In the market of electronic measuring instruments divided into different grades, prices for mid- to high-end products show an upward trend year by year. Although the demand is relatively small, the prices are high, thus accounting for a relatively large market share. Taking oscilloscopes as an example,2022In China, the market share of high-end oscilloscopes reached52.6%It is expected that the high-end market scale will continue to expand, by2027The proportion of annual contributions has expanded to60.0%, the high-end market is profitable.
The document indicates that the changing trend in the global electronic measurement instrument market size is similar to that of the Chinese market.2023After the market growth rate slowed down in the year, it is expected to resume rapid growth in the following years. Global market2018 - 2022The compound growth rate for the year is7.5%Compared to the slower growth rate of the Chinese market, China's share in the global electronic measurement instrument market is gradually expanding.2022The annual proportion reached37.7%estimated2027Year-on-year growth to40.0%.
Wen then introduced the industrial chain of the electronic measurement instrument industry. The upstream of the industry is raw materials, mainly consisting ofICchips, electronic components,PCB boardThe display screen, packaging materials, etc., which are composed of, taking the raw materials of domestic leading enterprises as an example,ICThe proportion of chip materials exceeds50%Among them, the proportion of chip imports is in45%-55%between;ICThe most critical chip in the chipset isADCchip, currentlyADCThe domestic self-sufficiency rate of chips is relatively low.2022Annual data is13 - 14%In addition, high-end chips have been affected by the trade war, leading to a certain degree of bottlenecking. In the downstream market, high-end demand mainly comes from communications, aerospace, defense, etc. High-end customers have high brand loyalty and are not sensitive to price; they focus more on product performance and indicators. Mid-range customers have certain technical threshold requirements for products and also rely on brand reputation. The application end of basic-level products mainly includes daily-use instruments, with lower technical barriers.
Looking at the competitive landscape of the overall Chinese market, the top five market shares are held by international companies.CR5for43%The companies are: Advantech, Rohde & Schwarz, Tektronix, LeCOS and ABB. Domestic enterprises including Lianxun Instruments, Puyuan Precision Instrument, and Dingyang Technology are mainly active in the mid-range and basic market segments and have a clear price advantage. With the continuous advancement of the domestic substitution process in the market, domestic enterprises have great development potential.
The document indicates that from an international perspective, the development path of domestic high-end products mainly starts from two aspects: hardware and software. The most core aspect of hardware is chips, and leading international companies have autonomous chip layouts, especially in indium phosphide technology, which is a unique high-end chip technology globally. Taking Puyuan Precision Electric's use of its own-developed chips as an example,2022After the year when self-developed chips were installed, chip costs decreased41.4%Gross profit margin increased19%The average price of oscilloscopes has risen.26%Revenue from products equipped with chips increased94.5%.
Therefore, local enterprises entering the high-end market need to improve hardware and bandwidth, as well as the corresponding supporting probes. In addition, software is equally important for high-end products; single measurements are difficult to meet the testing requirements of high-end users. The high-end market requires software to shorten development cycles and improve efficiency, as well as enhance the reusability of technology. Moreover, hardware products need to be softwareized; hardware is only responsible for signal acquisition and storage, while software is used for signal analysis and result display, accelerating the construction of testing systems and solving problems caused by hardware limitations.
