Today, this article takes stock of the status quo of industrial equipment and core parts, the dismantling of industrial core parts segments, the attention of the capital market to the leading companies of core parts, and the typical challenges and solutions of core parts:

While the domestic equipment manufacturing industry is booming, the self-production rate of core components is low, and there is still a huge gap and development space between high-end devices and overseas brands.

Based on the dismantling of typical equipment, parts with high added value such as industrial control, photoelectric, transmission, etc., are currently heavily dependent on imports, and there are a lot of opportunities for domestic substitution;

Under the premise that the performance of domestic parts manufacturers meets the needs of the first line, there are many advantages, including 7*24 hours localization service, significantly high cost performance, non-standard requirements of supporting customization and joint research and development;

In the past, many challenges faced by parts companies, such as the low ceiling of vertical categories and the lack of trial opportunities, have been well improved in recent years, based on the three-dimensional extension of product, industry and vertical integration, with the globalization strategy of step by step, domestic parts companies also have great opportunities to become stronger and bigger.

01 Status of industrial equipment and core components

Since 2010, China has become the world’s largest manufacturing power, in terms of scale, manufacturing added value in 2012-2022 accounted for about 20% of the global proportion increased to nearly 30%, continue to maintain the world’s first manufacturing power status, at the same time, we are the only country in the world with all the industrial categories listed in the United Nations industrial classification. In the process of rapid rise in the output value scale of China’s manufacturing industry, especially the vigorous development of equipment manufacturing industry, also presents certain characteristics:

The machine equipment localization rate is high

Machine equipment output value is large, rapid production expansion, strong capital characteristics, in the process of manufacturing globalization and localization become the first breakthrough link, in addition to semiconductor process equipment, five-axis CNC machine tools and other high-end application scenarios, we in construction machinery, consumer electronics, lithium, photovoltaic, consumer goods and other most industries of machine equipment localization rate is higher, Also born a group of such as Sany Heavy Industry, Dazu laser, Bozhong Seiko, micro, North China Chuang, lead intelligence, Mai for, Jiejia Wei Chuang and other excellent automation equipment manufacturers, the overall market is dominated by domestic players, and gradually from domestic sales to exports.

Low self-production rate of core components

Compared with the whole machine equipment, the core parts output value is low, the need for intensive cultivation, relatively slow, from the process of localization, in addition to sheet metal, plate, pipe fittings and other traditional mechanical workpiece, most of China’s whole machine equipment parts have a low self-production rate, high-end dependence on imports. In the technical difficulty is not high parts such as general hydraulic parts, conventional industrial lenses and other fields, China gradually achieved breakthroughs, quickly occupy the market; In some high-end components, it takes a long time to accumulate parameters and iterate processes, such as medium and large PLC (Programmable Logic Controller), high-end industrial cameras, machine tool numerical control systems, high-purity vacuum valves, high-speed connectors, etc., which rely heavily on overseas imports.

The technology gap between high-end devices is large

High-end parts manufacturing requires breakthroughs in materials, design, technology, processing equipment and other aspects, such as MLCC (Multi-layer Ceramic Capacitors, that is, chip multi-layer ceramic capacitors) has long been dominated by overseas giants such as Murata of Japan and Samsung of South Korea. The device from the ceramic powder, sintering process to the processing equipment need to take time to overcome.

Vertical industry parts also involve a deep understanding of the industry and equipment applications, in the commercialization process and customers to constantly grinding testing iterative process parameters to optimize the product, is the underlying theoretical research and complex scene application practice system combination. We clearly see the gap between domestic high-end parts and overseas giants, the breakthrough of these parts requires both the pull of the industrial chain, but also the precipitation of time, and it is a test of the team craftsman spirit.