AC800M 3BSE053240R1 PM891 As the “crown” of the industrial field in the era of digital economy, as well as the “brain and nerve of industrial manufacturing”, industrial software has penetrated and applied to almost all core links in the industrial field. At present, industrial enterprises above the scale of China have basically used industrial software to assist production and decision-making, and even small and medium-sized industrial enterprises have mostly used 1-2 kinds of industrial software.

It is also the case that industrial software is used as a specific means to cut off supply and “choke” in the Sino-US trade war, and its development is directly related to the survival and development of Chinese enterprises, and is related to the security and stability of the industrial chain and supply chain.

AC800M 3BSE053240R1 PM891 In 2021, China’s software and information technology service industry has completed a total software business revenue of 9,499.4 billion yuan, of which industrial software accounts for 2.5%.

In the dimension of product life cycle, the industry’s most common division is to divide industrial software into four categories: research and development design, manufacturing, management, operation and maintenance services.

Development characteristics of industrial software

Design and development category: the highest technical barriers

R&d and design industrial software is represented by CAE, CAD and EDA, and its main role is to improve the ability and efficiency of enterprises in the field of product research and development.

AC800M 3BSE053240R1 PM891 This kind of software has the characteristics of small volume, high concentration, difficult development, long development cycle, and high capital demand. It is a very important category of industrial software, and it is also the weakest link in China. The market share of domestic manufacturers is only about 5%, and most of the R & D and design industrial software is only used in the field of simple industrial mechanism, single system function, and low industry complexity.

Manufacturing category: largest market size

Manufacturing software is mainly used for data collection, analysis and decision-making in the production and manufacturing process of industrial products, and is responsible for production management, material management, quality management, equipment management, energy consumption management, etc.

In the industrial software, the manufacturing software market is large, and the production control software business completion volume will be 68.5 billion yuan in 2020, accounting for the highest proportion in the industrial software structure.

AC800M 3BSE053240R1 PM891 DCS, SCADA, PLC domestic manufacturers are relatively small, mainly concentrated in the low-end market segments, although the single product has a good strength, but the lack of smart factory overall digital solutions. At present, domestic MES companies have industry competitive advantages in some segments, but compared with foreign MES software products, there is still a certain gap in technical depth and application promotion.

Management category: localization process is the fastest

The role of management software is management and collaboration, of which ERP is the most used software.

AC800M 3BSE053240R1 PM891 There is no functional difference between domestic and foreign business management industrial software. However, due to the early development of foreign manufacturers, the volume of downstream customers is larger and the business is more complex, and the software of international manufacturers is more suitable for large and multinational enterprises. The software of domestic manufacturers is more lightweight, the target customer volume is smaller, and the advantage is that the project implementation cycle is shorter, and the manpower to cooperate with the implementation is also less.

Management software in the low-end market share is high, has appeared such as Kingdee, UF and other representative manufacturers. The software market size is close to 50 billion, and the high-end field can be replaced by large space.

Operation and maintenance services: Promising

AC800M 3BSE053240R1 PM891 Operation and maintenance service software is a system specialized in the production of equipment for repair and maintenance, originally originated in the aviation field, and is now widely used in aviation, military, rail transit, construction machinery and other fields.

Domestic software pays more attention to data collection and monitoring, lacks the aid to data application and decision making, and relies on foreign core technology. Domestic MRO products, technology, function or market share and other aspects, there is a certain gap with foreign products.

Why is Industrial software hard

Driven by market demand and policy support, China’s industrial software industry has stepped on the fast track, and there is still a huge gap between the development needs of the manufacturing industry.