Oriental Fortune: In 2025, the general electronic test instrument market is expected to exceed $10 billion, and domestic manufacturers are expected to break through

Zhitong Financial APP learned that Oriental Wealth (300059) securities release research report said that 2021 "Science and Technology Progress Law" issued, strongly promote the localization process of electrical measuring instrument industry, test instruments belong to a highly specialized industry, Frost&Sullivan estimates that the market size of the global electronic measurement instrument industry will reach $17.24 billion in 2025, of which general electronic test instruments account for about 60%, and the market size is expected to exceed $10 billion. The bank believes that domestic manufacturers have crossed the zero-to-one stage and are expected to break through in the global electrical instrumentation market and achieve strong Alpha. Recommended attention: Puyuan Jingdian (688377.sh), Dingyang Technology (688112.sh), Youlide (688628.sh), Oriental Zhongke (002819)(002819.sZ), etc.

The main views of Oriental wealth are as follows:

The market size of general electronic test instruments is expected to exceed 10 billion DOLLARS.

Testing instruments and meters belong to highly specialized industries, among which, oscilloscope, signal generator, power supply and electronic load, multimeter and other electronic measurement tools of high standardization, can be attributed to the general electronic testing instruments, is considered as "the eye of electronic engineers". Frost&Sullivan estimates that the market size of the global electronic measurement instrument industry will reach $17.24 billion in 2025, of which general electronic test instruments account for about 60%, and the market size is expected to exceed $10 billion.

Electronization, electrification, intelligence and informatization promote the continuous expansion of electronic test application fields and scenarios, and the industry demand is expected to steadily increase, which will present a weak Beta.

New energy vehicles, automotive electronics, 5G communications, semiconductor and electronic components, consumer electronics and other industries have become the main growth points of demand for test instruments. The research institute estimates that from 2019 to 2025, the revenue and growth of global and Chinese segmentation products are: Oscilloscope: 1.73/650 billion USD, CAG 6.3%/8.0%; Rf instruments: $2.78/940 million, CAG 5.8%/6.8%; Signal generators: $1.18/380 million, CAG 5.1 percent /6.5 percent; Power and electronic loads: $1.34/550 million, CGR 5.8%/6.8%. Multimeter: $1.25/500 million, CGR 6.2%/7.2%. The global digital multimeter market has a CAGR of 4.33% in 2019-2024. The market size will reach us $1.047 billion, with North America, Asia Pacific and Europe being the most important markets for digital multimeters.

Overseas companies temporarily dominate the market, and brand, product and channel are the three elements of the industry.

The industry is temporarily dominated by American, European and Japanese enterprises, with German Technology, Fortive and other leading enterprises occupying the main market share. The revenue scale of domestic leading enterprises is in the range of 300-800 million yuan, and the market share is less than 10%. Downstream procurement demand presents low frequency, brand is an important basis for customers to choose. Products need to meet the requirements of research, professional and technical personnel, high-performance products is an important technical barrier. Professional and long tail markets need strong channels to support, direct selling, distribution and other ways to cooperate to achieve channel barriers.

Domestic brands have taken hold and are in phase 1 to N.

With policy support and talent advantage, domestic brands are expected to expand in breadth and depth to achieve strong Alpha. In 2021, the Law on Scientific and Technological Progress was issued, vigorously promoting the localization of the electric measuring instrument industry. Instrument and instrument industry is a strong R & D driven industry. With the support of policies and capital, domestic brands make full use of China's engineer bonus advantages, and are making an impact on overseas, middle and high-end markets, and have made some breakthroughs in the field of key components such as self-developed chips. The bank believes that domestic manufacturers have crossed the zero-to-one stage and are expected to break through in the global electrical instrumentation market and achieve strong Alpha.