Demand fragmentation leads to low market concentration, and midstream companies with both capabilities are favored

261A1812P012 Downstream demand is fragmented and customized, and machine vision systems are less versatile, resulting in lower concentration in the midstream market. The downstream application market of machine vision shows the characteristics of highly fragmented and customized, involving many industries and diverse needs, and a set of machine equipment can only be applied to a single industry, or a set of accessories in the vision system can only use specific manufacturers’ products, so most of the customized development is needed for different industries. At present, it is difficult for midstream machine vision enterprises to cover all major downstream industries, and 261A1812P012 it is not possible to cover all models of products, and the development costs and use and maintenance of the promotion between different industries are high, resulting in a low concentration of the midstream machine vision market. At the same time, most enterprises have many product models, but the amount of individual products is not high, showing the characteristics of multiple varieties and small batches.

261A1812P012

261A1812P012 From the perspective of the machine vision midstream industry, we are optimistic about midstream enterprises with underlying algorithm capabilities and upstream parts self-production capabilities. First of all, at present, most of the midstream enterprises in machine vision do not have the ability to develop the underlying algorithm, and more are based on secondary development, and the integration degree with the needs of specific scenarios is not high, and the response to the update demand is slow, so the future independent midstream enterprises with the development ability of the underlying algorithm will be more advantageous; Secondly, the middle stream industry is highly competitive, there are many product types and the value of a single product is generally not high, so how to reduce the cost will be the key to the game between enterprises in the future. 261A1812P012 Therefore, the midstream enterprises that can extend to the upstream industrial chain and have independent production of some parts will occupy a favorable position in the future competition; Finally, the high degree of fragmentation of downstream demand and poor versatility of machine vision equipment lead to a high degree of customization, how to develop more different downstream application industries, especially in the next few years, lithium, photovoltaic and other industries with a relatively high outlook, will be an important factor for midstream enterprises to provide excess profits. The midstream enterprises with the above two capabilities will have more advantages in the future market competition.