Current situation of core system market of Chinese digital intelligence factory

1, policy to promote the rapid development of digital intelligence market

With the adjustment of domestic industrial structure and the rapid development of intelligent manufacturing industry, China has paid more and more attention to the development of digital intelligence factory core software, and the support has become more and more strong. In recent years, the national level has successively issued policy documents such as the Guiding Opinions on Deepening the Integrated Development of the New Generation of Information Technology and Manufacturing, the 14th Five-Year Plan for the Deeply Integrated Development of Informatization and Industrialization, and the Overall Layout Plan for the Construction of Digital China, all of which propose to accelerate the development of digital industry, industrial software, and industrial Internet. We will accelerate the digitalization and intelligent upgrading of the manufacturing industry.

2. Enterprises are optimistic about digital construction

NFDR541-T50 In recent years, with the slowdown of macroeconomic growth, the operation of major manufacturing enterprises are facing different degrees of market volatility risks, and the survival pressure is increasing. More and more manufacturing enterprises have begun to reconstruct all aspects of manufacturing research and development, production, management and service through digital and intelligent transformation, so as to improve the overall efficiency of production and manufacturing, and enhance the anti-risk ability and comprehensive competitiveness of enterprises.

According to IDC’s survey data of 100 production-oriented discrete manufacturing enterprises, 100% of enterprises are willing to explore digital factories, and more than 90% of enterprises believe that digital factories will achieve clear results.

3, electronic manufacturing and other industries are more mature

From the perspective of downstream application fields, according to the data of the “Intelligent Manufacturing Development Index Report (2022)” released by the China Institute of Electronic Technology Standardization, the intelligent manufacturing maturity level of computer and electronic equipment, automobiles, electrical machinery and equipment, food, medicine, special equipment and other industries ranks at the forefront of the country. In 2022, the maturity level distribution of intelligent manufacturing in the TOP10 domestic industries is as follows:

4, the domestic market size of more than 50 billion yuan

As China’s manufacturing industry continues to transition to high-end manufacturing, the market demand for core system products for smart factories is growing rapidly. In 2022, the market size of China’s digital intelligence factory core system (PLM+ERP+MES+AIoT) will reach 53.4 billion yuan, with a compound growth rate of 14% from 2020 to 2023.

Note: The 2023 market data can be estimated by referring to the average growth rate of industrial software product revenue disclosed by the Ministry of Industry and Information Technology in the first half of 2023.

From the perspective of market size structure of segmented products, industrial AIoT software accounts for nearly half of the market share, followed by industrial ERP software accounting for 37%, MES software and PLM software accounting for a relatively small proportion.

China digital intelligence factory core system market competition

1, the segmentation of product market competition pattern has its own advantages

NFDR541-T50 There are many enterprises participating in the core system market of domestic digital intelligence factory, and the market competition is more dispersed. From the perspective of a single product field, the industrial ERP market is relatively mature, domestic and foreign enterprises tug at each other, and the market competition is fierce; Industrial MES system market, foreign enterprises occupy a leading position, domestic brands such as Baoxin, Dingjie and other rapid development, catch-up momentum is strong; In the industrial PLM system market, the leading position of foreign brands such as Siemens and Dassault Systemes is stable, and at the same time, domestic manufacturers such as Dingjie and Sipu are speeding up innovation and breakthrough; In the industrial AIoT system market, there are various types of participating enterprises, including Internet enterprises such as Alibaba and Tencent, communication enterprises such as telecom and mobile, industrial enterprises such as Foxconn, and software enterprises such as Yonyou and Dingjie, and the market competition is relatively dispersed. Among them, software enterprises based on their strong technical strength, excellent performance in industrial AIoT solution innovation, such as Dingjie based on Athena industrial Internet platform, equipment cloud industrial APP and OT equipment, from the management benefits, post-integration, resource allocation, capacity improvement and other aspects of the breakthrough of the traditional model, to fully meet the needs of different scenarios of digital factory construction.

2. Integrated service plan becomes a popular competitive track

In recent years, with the goal of meeting the individual needs of users, the core system integration service scheme of digital intelligence factory emphasizing integrity and maximum benefit has been favored by market customers, and the integration scheme covers the whole process of R & D design, production and manufacturing, business management and the whole life cycle of products. The integrated service level of an enterprise is closely related to its technical strength, service capability and competitive position, and industry leaders such as Siemens have relevant layouts.

Taking the technological innovation of the enterprise in industrial application as the vertical coordinate and the service level of the core system integration scheme of the digital intelligence factory as the horizontal coordinate, the competitive position of the participating enterprises in the core system market of the digital intelligence factory is comprehensively evaluated. Among them, the technological innovation level is comprehensively evaluated through the scale of relevant R&D investment, software works and patent information. The service level of integrated solutions is evaluated by product line diversity, business scale and customization ability. As can be seen from the figure below, foreign brands such as Siemens and SAP, as well as domestic manufacturers such as Dingjie and Yonyou, are in the competitive position of “strong performers”.

Note: The innovation level of industrial application technology is evaluated by the scale of investment in R&D related to industrial application, software works and patent information. The service level of the integrated solution is comprehensively evaluated by the diversity of the digital intelligence factory’s product line, business scale, and customized services.