Overview of Intelligent Manufacturing Industry in China

Driven by a series of favorable policies such as the ‘‘Intelligent Manufacturing Development Plan (2016–2020)’’ (《智能制造发展规划(2016–2020年)》) and ‘‘Made in China 2025’’ (《中国制造2025》), the revenue of the intelligent manufacturing industry in China is well positioned to accelerate its growth in the future. The revenue of the intelligent manufacturing industry rose from CNY 838.4 billion in 2012 to CNY 1,450.0 billion in 2016, representing a CAGR of 14.7%, and is expected to grow to CNY 3,668.4 billion in 2021 at a CAGR of 20.4% from 2016 to 2021.

According to the ‘‘Intelligent Manufacturing Development Plan (2016–2020)’’, the smart manufacturing industry will develop at least 60 major technologies by 2020, among which the development of smart testing and assembling (智能检测与装配装备) is one of the eight key major technologies that will be emphasized in this period. As precision 3D testing and precision machining represent a key technology breakthrough, the precision 3D testing and precision machining solutions market has a promising future as intelligent manufacturing continues to grow in application.

Output value of high-end equipment manufacturing

The 12th Five-Year Plan for the High-End Equipment Manufacturing Industry has proposed for the first time that high-end equipment manufacturing should be the focus of the industrial manufacturing industry, which led to various developments in related fields. In particular, aviation, aerospace, shipbuilding, ground transportation vehicles and electronics are the major industries in high-end equipment manufacturing.

According to the National Bureau of Statistics of China, the total output value of equipment manufacturing increased from CNY 6.4 trillion in 2012 to CNY 8.5 trillion in 2016, representing a CAGR of 7.3%. The high-end equipment manufacturing segment showed a faster growth than the overall equipment manufacturing industry, and it grew from CNY 0.6 trillion in 2012 to CNY 1.8 trillion in 2016 at a CAGR of 31.2% during the same period.

With the national strategy in upgrading the overall equipment manufacturing industry, high-end equipment manufacturing is of great importance, and the share of output value of equipment manufacturing contributed by high-end equipment manufacturing increased significantly from 9.6% in 2012 to 21.4% in 2016.

In the forecast period from 2016 to 2021, led by the 13th Five-Year Plan, the high-end equipment manufacturing segment is expected to continue to grow and outperform the overall equipment manufacturing industry. The output value of high-end equipment manufacturing is expected to reach CNY 3.9 trillion in 2021 with its share in the overall equipment manufacturing industry growing to 32.1%.

Precision 3D testing and precision machining solutions

Precision 3D testing solution is a system that makes use of photogrammetry and grating measurement principle for data collection. It can provide precise measurement and generate analyzed data of the testing object. Precision machining solution is generally a customized CNC machining system that offers automatic, precise and consistent motion control in the manufacturing process by enabling motions to be done through programmed commands.

The upstream markets of precision 3D testing and precision machining solutions are manufacturers, or their agents, of 3D scanner, 3D deformation measurement system, customized CNC machining center, auxiliaries tools such as fixtures and general-purpose components, and software.

Precision 3D testing solutions and precision machining solutions can be applied in various downstream segments, among which the industrial manufacturing for high-end equipment manufacturers is the major one. Among the industries, industrial manufacturing, aviation, aerospace, shipbuilding, ground transportation vehicles and electronics are the major ones in which precision 3D testing solutions and precision machining solutions are used. The industrial precision 3D testing and precision machining solutions market thus refers to the market where intelligent manufacturing solution providers offer precision 3D testing solutions and precision machining solutions to high-end equipment manufacturers in industries such as aviation, aerospace, shipbuilding, ground transportation vehicles and electronics.

China’s industrial precision 3D testing and precision machining solutions market has flourished in the past five years due to growing demand in downstream industries. The total revenue of industrial precision 3D testing and precision machining solutions increased from CNY 412.9 million to CNY 820.6 million from 2012 to 2016 at a CAGR of 18.7%. During the same period, the revenue of industrial precision 3D testing solutions increased from CNY 98.7 million to CNY 164.0 million, while the revenue of industrial precision machining solutions increased from CNY 314.2 million to CNY 656.6 million. In the forecast period from 2016 to 2021, the total revenue of industrial precision 3D testing and precision machining solutions is expected to grow at a CAGR of 18.6% from CNY 820.6 million in 2016 to CNY 1,928.9 million in 2021, among which the revenue of industrial precision 3D testing solutions is expected to increase from CNY 164.0 million in 2016 to CNY 297.8 million in 2021, representing a CAGR of 12.7% from 2016 to 2021, and the revenue of industrial precision machining solutions is expected to increase from CNY 656.6 million in 2016 to CNY 1,631.1 million in 2021, representing a CAGR of 20.0% from 2016 to 2021.

Among all downstream industries, aviation and aerospace are the two major growth engines of the industrial precision 3D testing and precision machining solutions market. Revenue for the aviation manufacturing industry and aerospace manufacturing industry grew at CAGRs of 26.3% and 33.2% from 2012 to 2016, respectively, and is expected to grow at CAGRs of 25.1% and 30.6% from 2016 to 2021, respectively.