China's key instrumentation equipment "Eleventh Five-Year" is still a period of rapid growth

Industry Overview

Four consecutive years of growth rate of more than 20%

China's instrumentation industry is a high-speed and steady development industry. However, in the 13 industries of the machinery industry, instrumentation does not belong to the industry with the highest growth rate. The growth rate has been between 20% and 27% in the past four years.

Another feature of the instrumentation industry is that the import and export deficit is relatively large, and it is the largest deficit among the 13 industries in the machinery industry. In 2005, the total import and export volume of China's instrumentation industry was 19.359 billion U.S. dollars, of which imports were 14.014 billion U.S. dollars, up 15.7% year-on-year, and exports were 5.254 billion U.S. dollars, up 30.8% year-on-year.

The instrumentation industry is in the entire electromechanical industry, which has undergone rapid restructuring and transformation. A considerable number of state-owned enterprises have become privately owned, and foreign-funded enterprises are also very active. Many well-known multinational instrument companies invest in or expand production in China. . According to statistics of economic structure types, China's enterprises (including state-owned, state-controlled and private enterprises) accounted for approximately 55.12% of the sales revenue in the industry, and profit accounted for 54.59%. The rest were foreign-funded enterprises.

Yan Jiacheng told reporters that there are still some concerns for China's instrumentation industry. First, China is a developing country, and the instrumentation industry has a gap of 10 to 15 years compared with developed countries. However, in the developing countries, China is the largest and most complete and most powerful country in the instrumentation industry.

Second, China’s demand for instruments and meters is one of the fastest growing countries. The growth rate of instrumentation in the world is 3% to 4%. China has achieved an annual growth rate of more than 20% for four consecutive years, and some products already account for one-tenth of the world's total.

Third, at present, the instrumentation industry is a sector that directly competes with foreign companies. Foreign investment has entered the third phase in China. The first stage is the joint venture and technical output. The second phase of the joint venture from the joint venture before and after the 1990s is the second stage. Now it has entered the third stage, which is based on the sole proprietorship and the merger of outstanding Chinese companies.

Fourth, some middle and low-end products already have scale advantages and international market competitiveness. For example, ordinary digital multimeters and other products account for a large amount of production in the world, and household electrical meters have a production capacity of 50% of the world's total. At present, China has become a major producer and exporter of electricity meters, microscopes, telescopes, thermometers, pressure gauges, water meters, gas meters, and optical components. Exports of high-end products such as container inspection equipment have also begun to make breakthroughs.

Market opportunities

"Eleventh Five-Year" is still a period of rapid growth

In 2004, the production and sales of China's instrumentation industry exceeded 100 billion yuan for the first time, and it is expected to exceed 200 billion yuan at the beginning of the “Eleventh Five-Year Plan” period, and reach 300 billion Yuan at the end of the “Eleventh Five-Year Plan”, with an average annual growth rate of 20% This means that since the founding of the People’s Republic of China, the first 100 billion yuan has been in the period of 55 years, and it has spanned the second and three 100 billion yuan on average for only three years.

During the “Eleventh Five-Year Plan” period, China’s export of instrumental products will maintain an annual growth rate of around 30%, with a medium-term increase of more than US$10 billion and a final period of more than US$15 billion. The annual increase in imports of instrument and control products is expected to be approximately 20%. In the last year, the imported instrument and control products will exceed 20 billion U.S. dollars.

The annual growth rate of industrial automation instrumentation and control systems is estimated to be 25% in the “Eleventh Five-Year Plan”, and will reach 100 billion Yuan in the final period. The demand for trunk products such as DCS, PLC, transmitters, flow meters, regulating valves, and electric actuators will enter the world. The top three, the size and potential of the market are quite large. According to the forecast of the electric power sector, the average number of newly added thermal power supercritical assembly machines reached at least 20 during the “Eleventh Five-Year Plan” period. The price of a DCMW product imported from a 600MW thermal power unit is approximately 11 million yuan. The price of domestic DCS is lower than that of imported products by 20% to 30%. The market potential is quite large.

In the same way, the main unit control system of a refinery with a capacity of more than 5 million tons per year is taken as an example. At present, China's refinery equipment is gradually moving toward the direction of large-scale equipment and diversification of processed crude oil. The investment in these projects is generally several billion yuan, and the investment in automation equipment accounts for 8% to 13% of the total investment. It can be predicted that the scale of its market is very large. In addition, the refinement and transformation of old devices is also a trend, that is, there is a market demand for upgrading automation devices.

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