Instrumentation Industry Regains Spring

[Review: In 2010 and beyond, the situation of China's instrumentation market will be greatly changed compared with previous years. The main performance is that with the continuous promotion of national policies such as energy conservation, emission reduction, and low-carbon economy, the traditional market demand will be reduced. Wind power, nuclear power, smart grid, rail transit and other industries will produce instrumentation products. New large demand. 】

A few days ago, the Ministry of Environmental Protection announced the 2010 pollution reduction targets. According to the new target plan, in 2010, sulfur dioxide emissions will be reduced by 400,000 tons more than in 2009 when the emission reduction task is completed one year ahead of schedule; the chemical oxygen demand is based on the completion of the “Eleventh Five-Year Plan” target. Strive to cut more than 200,000 tons. At the same time, ensure that the daily treatment capacity of newly added urban sewage is 10 million cubic meters, and the installed desulfurization capacity of new coal-fired power plants is 50 million kilowatts.

The new emission reduction targets are within the expectation of the industry, and the scale of compression or structural transformation that the thermal power, steel, and other industries have begun will also continue. The direction of development of the instrumentation industry is also being framed - the demand in the traditional market will weaken, and the demand for new industries such as wind power and smart grid will increase.

Demand for emerging industries will accelerate China's instrument and meter industry association deputy secretary-general Dong Jingchen said that in 2010 and beyond, China's instrumentation market situation will have a big change compared to previous years. The main performance is that with the continuous promotion of national policies such as energy conservation, emission reduction and low-carbon economy, the traditional market demand will be reduced, while wind power, nuclear power, smart grid, rail transportation and other industries will produce instrumentation products. New large demand.

In order to promote energy-saving and emission-reduction targets, in recent years, China has actively promoted the thermal power unit “too big pressure”. Especially after the financial crisis, our investment in the field of thermal power continued to decrease. In 2009, the amount of thermal power investment decreased by 15% year-on-year, and the output of thermal power generators dropped by more than 28%. It is understood that China will continue to implement the policy of "big pressure on small," and the scope of pressure will be expanded to 125,000 kilowatts and 200,000 kilowatts. This means that the instrumentation requirements traditionally applied to thermal power plants will be greatly reduced.

The demand for instrumentation in the steel and cement industries will also continue to decrease. At present, the overcapacity of steel and cement is obvious. According to the relevant data released by the state, the steel industry's capacity exceeds the market demand of 200 million tons, while exports in 2009 fell by 65% ​​year-on-year; cement has nearly 100 new production lines under current conditions of excess production capacity. China has already put in place restraint policies for overcapacity in the above industries, and mandatory restrictions on emission reduction targets are expected to further reduce the demand for instruments and meters in the traditional market.

Intelligent instrumentation is an important direction for research and development. New industries have new requirements. So, what should be the new R&D direction of the instrumentation industry?

Instrumentation industry expert Jia Jiacheng believes that if energy saving and emission reduction is to be achieved, accurate energy collection, measurement and real-time monitoring, analysis, and control of the load must be carried out. This requires instrumentation, especially energy metering and instrumentation. Electrical automation management system products are highly intelligent, networked, and highly reliable. Generator-specific measuring instrument, power quality analyzer "The instrument industry is still in a relatively weak overall stage, we must pay attention to the improvement of product strength. Among them, an important direction is the product's intelligence." Yan Jiacheng said. The intelligent industry is not only a low-carbon economy but also has advanced technology, which is in line with the current overall economic development direction. However, the weakest areas in China's intellectualization and most need to develop are precisely the basic industries such as instruments, meters, and sensors. Therefore, the instrumentation industry should seize the current opportunities and strive to develop new types of instrumentation products needed by the new industry.

The traditional market has shrunk, but the new market is worth the wait.

Energy-saving, emission-reducing, and low-carbon economy have become a long-term development trend. The above trends have also led to a number of high-speed development of new industries. For example, wind power, nuclear power, smart grids, high-speed trains, and rail transit, these industries have set new requirements for instrumentation.

In the field of wind power, the country will form several tens of millions of kilowatts of wind power bases in accordance with the requirements of “incorporating large power grids and building large bases,” and the total installed capacity of wind power has been raised to 100 million kilowatts. In the field of nuclear power, the state plans that by 2020, China’s nuclear power will account for 4% of the country’s total installed capacity of electric power from 4% to 5%, nuclear power installed capacity will reach 100 million kilowatts, total construction cost will reach 150 billion US dollars, and the nuclear power equipment industry’s domestic market scale is expected to reach 5000 100 million yuan. In the field of smart grids, the State Grid Corporation of China has issued smart grid construction plans, and the requirements for intelligent and digital grid equipment have also provided opportunities for instrumentation. In the field of rail transportation, the Urban Rail Transit Plan approved and approved by the State Council involves a total of 23 cities. Currently, 36 urban rail transit lines are currently under construction in 12 cities across the country. The scale of rail transit investment will exceed RMB 1 trillion by 2020. yuan.

Related Links: Over-reliance on investment in the instrumentation industry According to data released by the China Instrument and Meter Association, sales of the instrumentation industry in 2009 were greatly affected by the financial crisis. At the beginning of 2009, the instrument and meter industry's sales increased only 2.6% and 2.9% year-on-year, which is the lowest point in history since the reform and opening up. The increase in November 2009, compared with January, also rose by only 4 percentage points.

Another feature of the instrumentation industry in 2009 was that profit growth was better than sales growth. Profit in February 2009 was a negative year-on-year increase of 13.7%, reaching the lowest point in history, but it began to reverse from positive in May, and the growth rate in November was 13.1%. The rapid growth of profits is related to the tightening of payment recovery, and the decline in prices of raw materials and devices.

It is worth noting that the trend of increase in the total output value of the instrumentation industry and the continuous decline in sales growth has occurred since 2007. Among them, the growth rate of industrial output value was 28.5% in 2007 and 18.7% in 2008, and it has dropped to less than 10% by 2009. The reason is mainly due to the high degree of dependence on investment, especially the high dependence on traditional new construction projects. At present, new trends have emerged in the industry, and the instrumentation industry should seize the opportunity to avoid the financial crisis and the risks associated with relying on investment.