Industrial automatic control system device manufacturing industry: risks and opportunities coexist
(1) Industry overview
1. Industry classification and industry development
The industry of the controller and control cabinet products is the manufacturing industry of industrial automatic control system devices. According to China's national economic industry classification standards, the product belongs to the "Industrial Automatic Control System Device Manufacturing Industry" in the instrumentation industry; according to the "Industry Classification Guidelines for Listed Companies" (2012 Revised Edition) issued by the China Securities Regulatory Commission in October 2012, this product Belongs to the manufacturing industry (C)-instrument manufacturing (C40)-general instrument manufacturing (C401)-industrial automatic control system device manufacturing (C4011). According to the "Guidelines for the Classification of Management Industries for Listed Companies", the industry in which the product belongs belongs to "C4011-Industrial Automatic Control System Device Manufacturing".
1. Industry regulatory system
The application scope of industrial automatic control system involves electric power, chemical industry, food, machinery, textile and other industries, and its main products are basic means and equipment for automatic detection and control of the production process. Under the subdivided administrative management mode, the automation applications of each industry are managed by the competent departments of each industry one by one, and the industry application system is self-contained and the industry is self-supporting. With the deepening of reforms and the cancellation and merger of various ministries and commissions, the industry authorities have gradually reduced, but the industrial automation control system industry has not yet formed a unified industry management system. Currently, the State Council, the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Commerce, and the Ministry of Information Industry formulate relevant industry policies and plans, mainly focusing on industry macro management and self-discipline management in the form of industry associations. Related industry associations include the Chinese Society of Automation, China Mechanical Engineering Society Mechanical Industry Automation Branch, China Machinery Industry Federation, China Instrument and Meter Industry Association, China Electrical Equipment Industry Association, China Instrument and Meter Society, China Electrical Engineering Society, etc.
2. Main industry policies and regulations
At present, in order to ensure the smooth development of the industrial automatic control system device manufacturing industry, the country has successively introduced relevant policies to promote technological progress, strengthen energy conservation and emission reduction, and adjust the industrial structure, mainly including
Issuing document number or issuing unit
"National Work Safety "Twelfth Five-Year Plan"
No. 47  issued by the State Council
"The "Twelfth Five-Year" Comprehensive Work Plan for Energy Conservation and Emission Reduction"
State Development  No. 26
"Resources Conservation and Comprehensive Utilization and Environmental Protection Technologies Encouraged by the State for Development"
National Development and Reform Commission, Ministry of Science and Technology, State Environmental Protection Administration
"2006-2020 National Informatization Development Strategy"
No. 11  issued by the Central Office
"National Medium and Long-term Science and Technology Development Plan Outline (2006-2020)"
State Development  No. 44
"Several Opinions of the State Council on Accelerating the Revitalization of the Equipment Manufacturing Industry"
State Development  No. 8
"Guide to Priority Development of High-Tech Industrialization Key Fields (2011)"
National Development and Reform Commission, Ministry of Science and Technology, Ministry of Commerce
"Catalog of Key Technologies and Important Products with Independent Intellectual Property Rights in my country's Information Industry"
Ministry of Information Industry, Ministry of Science and Technology, National Development and Reform Commission
"Outline of the Twelfth Five-Year Plan for National Economic and Social Development"
"Plan for Adjustment and Revitalization of Equipment Manufacturing Industry"
"Decision of the State Council on Accelerating the Cultivation and Development of Strategic Emerging Industries"
State Development  No. 32
"The 12th Five-Year Plan for the Development of High-end Equipment Manufacturing Technology"
Ministry of Industry and Information Technology
"The Twelfth Five-Year Plan for the Development of Intelligent Manufacturing Technology"
Ministry of Science and Technology
3. The upstream and downstream relationships of the industry and the composition of the value chain
The upstream of the industrial automatic control system device manufacturing industry is mainly electrical components, steel and various mechanical parts. The downstream of the industry involves many fields, including petroleum, chemical, metallurgy, electric power, construction, construction machinery, rail transit and other fields.
Upstream industries such as electrical components, steel, and mechanical parts have little impact on the industrial automation industry. The upstream industry basically belongs to the market liberalization competition industry. Although the prices of raw materials and parts fluctuate to a certain extent due to factors such as supply and demand, the industrial automation business is fully developed, the technology is mature, and the product supply is relatively stable. The price of steel fluctuates slightly. Moreover, the automation industry can transfer the risk of price fluctuations of some raw materials and parts by adjusting product prices and reasonably controlling inventory.
The market demand of downstream industries has a significant impact on this industry. The downstream industries require a wide range of automation equipment products with different models and specifications. Therefore, the production of products in this industry that is highly dependent on downstream industries is also based on non-standard products. The expansion of market demand in downstream industries has greatly promoted the rapid development of the industrial automation industry; the continuous improvement of the equipment manufacturing level of industrial automation control systems by downstream industries has played a positive role in the independent research and development of industry products and technological innovation.
4. The cyclical, seasonal, and regional characteristics of the industry
There is a certain positive correlation between the industry and the degree of macroeconomic prosperity.
The industry has no obvious seasonal characteristics.
However, according to the characteristics of the company's downstream refrigeration and air-conditioning industry, seasonal characteristics are mainly manifested in seasonal differences in product demand. The first quarter is the off-season, and the second, third and fourth quarters are the peak sales season, especially the third quarter.
At present, three major plates have been formed in East China with Jiangsu, Zhejiang, and Shanghai as the main ones, Bohai Rim with Beijing, Tianjin and Liaoning as the main ones, and Southwest China with Chongqing as the main plate.
(2) Market situation
1. Overview of the domestic market
In recent years, China’s industrial automatic control system device manufacturing industry has developed rapidly under the dual benefits of national policy support and increased market demand. Since 2011, the market size of 195.2 billion has continued to increase steadily, and it is expected to exceed 350 billion in 2015. Reached more than 380 billion yuan.
Data source: gongkong.com
Industrial automation control technology is the use of control theory, instrumentation, computer and other information technology to achieve detection, control, optimization, scheduling, management and decision-making of industrial production processes to increase output, improve quality, reduce consumption, and ensure safety. Purpose of comprehensive technology. The industry involves many fields such as electric power, electronics, computers, artificial intelligence, communications, electromechanics, etc. It has distinctive features such as technology intensive, high investment and high efficiency, and is a typical high value-added industry. The industrial automation control industry has a wide range of products, a large market demand, full competition in the market, and a high degree of liberalization. However, due to the slow technological innovation and the backward management model, domestic enterprises are still relatively lacking in overall strength compared with the mature automation control system production and management models abroad.
There are so many types of industrial automation control products that it is impossible to form a unified and exact classification standard. According to the industry's first portal website, the only portal website of the Chinese Society of Automation, and the cooperative website "China Gongkong.com", there are 16 major items and more than 200 minor items.
Judging from the current development scale of China's industrial control and automation control market, China has the world's largest market. Whether it is the transformation of traditional domestic industrial technology, factory automation production, or enterprise information management operation, a large amount of industrial automation system equipment is required, and the domestic potential market is huge. In the world, there are many industrial automation manufacturers, with 200,000 manufacturers worldwide, and more than 2,000 inverter manufacturers alone. Although China has a huge market, the overall technological development of the industrial control industry is relatively lagging, and domestic product suppliers are directly facing strong competition from well-known brand companies in the United States, Japan, and Germany. In IPC, DCS, PLC and other fields, foreign companies have absolute advantages over domestic manufacturers.
On the whole, China's automation control companies lack economies of scale and cannot yet build well-known domestic brands. Multinational integrated companies such as Siemens, ABB, York, Schneider, etc. are still leading the Chinese market. my country is still unable to compete with major European and American countries in key technology research and development and product manufacturing technologies for industry-leading and high-end products. However, in recent years, through the introduction and independent research and development of international production technology by domestic enterprises, the gap with multinational enterprises is constantly being narrowed. In the domestic market, Chinese companies also have the ability to quickly respond to market demands, quickly understand the needs of customers for product varieties, models and specifications, and quickly meet them. Due to the industry characteristics of a wide range of automation control system products, domestically strong special-purpose enterprises can in-depth research and development of related products in some subdivisions according to domestic market needs to occupy a different place in the market. At the same time, domestic integrated enterprises also have certain advantages in localized production, product prices and sales channels. Therefore, although multinational integrated enterprises still occupy a dominant position in the competitive landscape of this industry, domestic enterprises can also have certain competitiveness.
2. Industry development prospects
From a global perspective, the manufacturing industry of industrial automatic control system devices is an emerging direction that will benefit from future development. The industrial automation control system has obvious effects of improving efficiency, saving energy and reducing consumption, saving labor costs, and promoting industrial upgrading, and has great potential for future development. From a domestic perspective, the industrial automation control system industry is strongly supported by national regulations and policies, and has a huge and diversified market demand. Moreover, the gap between my country's industrial automation control level and the developed countries in Europe and the United States is still very significant, and the future industrial automation rate is very broad. The central government put forward that the main task of economic construction and reform in the first 20 years of this century is to basically realize industrialization and vigorously promote informatization, and further proposed that informatization is an inevitable choice for my country to accelerate industrialization and modernization. Automation plays a role as a bridge and link between informatization and industrialization. Facing the backward status of my country's traditional industries, the country will increase the pace of technological transformation, so that my country's industrial technology will develop in the direction of diversification, automation and intelligence. At the same time, protecting the environment and reducing energy consumption as my country's future strategic directions also provide a good guarantee for the development of the industry. New energy equipment, environmental monitoring, water treatment projects, and environmental protection management of large-scale engineering projects all require the support of industrial automation control system technology, which brings a broad space for the future development of the industry. The adoption of automation control technology in our country is an important means to develop and improve the technological level of many industries in the national economy, and it is also a key force in the transformation of traditional industries, the establishment of an automated industrial system and high-tech industries in our country, and its development prospects are huge.
(3) Analysis of industry competition
Compared with the international advanced level, my country's industrial automatic control system device manufacturing industry still has a significant gap. In China’s industrial automation market, the scale and technical level of enterprises are severely differentiated. The large-scale and high-tech hardware and software manufacturers are mainly concentrated in multinational companies, the original state-supported ministries and commissions, scientific research institutes and a few private enterprises. Hundreds of small and medium-sized enterprises are mainly engaged in the trade of automation components and simple system sets, and some local enterprises are engaged in the technical research and development and production of special products. Foreign-funded companies account for most of the high-end market, and many local companies are fighting in the low-end market.
(1) Foreign-funded enterprises occupy the high-end market
From the perspective of the overall competition pattern of the industry, foreign capital accounts for about 70% of the market share of my country's automation control equipment market, and is mainly concentrated in the high-end market.
The industrial automation control multinational companies in the world’s top 500 industries have entered the domestic market, such as Siemens, General Electric (GE), Emerson, WestingHouse, ABB, Schneider, Omron )Wait. Compared with domestic automation control equipment companies, foreign companies have obvious advantages in design and core technology. Multinational companies rely on advanced control technology, communication technology, and computing technology to design and manufacture ultra-large-scale, fast response, operational safety, and achieve control optimization, management optimization, and engineering integration automation equipment systems, which basically monopolize the high-end automation control system equipment Market, especially the high-end market of automated control equipment for foreign customers.
(2) Local enterprises are concentrated in the low-end market
At present, the overall technical level of China's industrial automatic control system equipment manufacturing products is low, and the development capability is weak. Only a small number of high-end domestic industrial automation control instruments, devices and systems have entered the most important production equipment, such as Chongqing Chuanyi Automation Co., Ltd., Shanghai Automation Instrument Co., Ltd., Zhonghuan Tianyi Co., Ltd., and most of the rest are monopolized by foreign high-end industrial automation technology and systems. Domestic enterprises engaged in industrial automation system integration and engineering are mostly small and medium-sized enterprises. Through many years of agency or distribution of foreign industrial automation products, they have gradually mastered the technical performance of foreign industrial automation products, and have a deep understanding of domestic enterprise process conditions and market Under demand conditions, the secondary development was carried out according to the project situation, which reduced the cost, and the technical performance reached or approached the technical level of foreign manufacturers, realizing partial replacement of foreign manufacturers. Some companies do not follow the trend and do special product research and development in industry segments, and they also occupy a place in the local market.
(4) Basic industry risks
1. Policy risk
The industrial automatic control system device manufacturing industry is an industry that the state attaches great importance to and encourages promotion. Thanks to the continuous increase of new and technological transformation industrial projects and infrastructure construction projects, the overall scale of the industry has been growing steadily. In recent years, based on the sustained and rapid growth of my country's national economy, in order to prevent the risk of economic overheating, relevant state ministries and commissions have successively issued a series of policies to macro-control the construction engineering equipment industry. Control measures include land supply, taxation, credit, and foreign investment. Therefore, changes in relevant national laws and regulations and changes in industrial policies will have a greater impact on the industry.
2. Industry risks
At present, the number of enterprises engaged in independent research and development, manufacturing and sales of automation control system equipment is continuously increasing, and market competition is intensifying. After years of operation, the company has formed a number of core technologies in the development of automation control system integration, established a relatively stable market position and customer group, and occupied a certain position in the industry. However, with the strong support of national industrial policies, the demand for automation in various application industries has greatly increased, and more companies will participate in the competition in the automation industry in the future, leading to intensified industry competition. If the company is unable to continuously upgrade its industry, realize the transformation from traditional business to emerging business, tap emerging business, and open up emerging markets, it will face relatively severe market competition.
3. Technical risks
This industry is a technology-intensive industry, including electronics, software, precision machinery, optoelectronics and other modern technologies. In the new economic era, the frequency of high-tech upgrades is increasing. With the continuous development of information technology, microelectronics technology, computer technology, network technology, and control theory, technological updates in the industrial automation industry change with each passing day. If the company cannot continue to carry out technological innovation, it will inevitably affect the company's product innovation and business innovation, making it difficult for the company to exert its advantages under the fierce market competition mechanism. Moreover, the company's future downstream industries will continue to be updated and upgraded. In order to meet the production needs of downstream industries, the company also needs to continue to promote technological research and development and technological transformation.
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