Always Pay Attention to Industrial Switches!

With the acceleration of new infrastructure construction, the industrial Internet has ushered in new development opportunities. The essence and core of the industrial Internet is to closely connect and integrate equipments, production lines, factories, suppliers, products and customers through the industrial Internet platform. It can help the manufacturing industry to extend the industrial chain, form cross equipment, cross system, cross plant and cross region interconnection, so as to improve efficiency and promote the intellectualization of the entire manufacturing service system. It is also conducive to promoting the integrated development of the manufacturing industry, realizing the leapfrog development between the manufacturing industry and the service industry, and enabling the efficient sharing of various elements and resources of the industrial economy. The industrial Internet connects intelligent machines and ultimately human-machine connections. Through software and big data analysis, it can stimulate industrial productivity and realize faster, safer, cleaner and more economical upgrading of traditional industries.

Industrial Ethernet has the "openness" of Ethernet, which realizes the technical characteristics that can not be provided by field bus, and also has the "industrial particularity". Different from commercial Ethernet, it meets the requirements of real-time, high reliability, fast redundancy, zero packet loss, network precision clock synchronous transmission, data security, physical layer security, classified broadcasting Storm suppression characteristics and other technical requirements. Industrial Internet communication products are closely related to the development of upstream and downstream industries. In recent years, the growth of investment scale in smart cities, mines, rail transit, electric power and new energy, intelligent manufacturing and many other fields, as well as the acceleration of digitization, networking and intelligent transformation, have brought about the continuous growth of demand for industrial ethernet switches.

According to IHS data, the global industrial Internet communication equipment industry's revenue in 2018 was US $2.65 billion and that in 2019 was US $3.082 billion. At the same time, it is expected that the industry revenue will increase to US $5.530 billion by 2023, of which the industrial Ethernet switch revenue will reach US $3.016 billion. The application fields of domestic industrial Ethernet switches are mainly concentrated in the two major industries of power and rail transit. It is estimated that the total market share is still more than 50%. For the domestic market, we expect that the power and transportation industries will generate an average annual market demand of 3.2 billion yuan in the next five years, and the average annual demand of the overall market will exceed 6 billion yuan.

The power industry is expected to increase the market demand by 1.3 billion each year. From 2016 to January September 2020, the completed investment in the construction of national power projects reached 884 billion yuan, 823.9 billion yuan, 812.7 billion yuan, 829.5 billion yuan and 598.1 billion yuan respectively. Among them, the investment in power supply reached 340.8 billion yuan, 290 billion yuan, 278.7 billion yuan, 328.3 billion yuan and 308.2 billion yuan respectively; The power grid investment reached 543.1 billion yuan, 533.9 billion yuan, 534 billion yuan, 501.2 billion yuan and 289.9 billion yuan respectively. Overall, the average annual investment in power engineering during the "13th five year plan" period is about 800 billion, of which the power supply and power grid are 300 billion and 500 billion respectively. Considering that the investment in power automation control system accounts for 6.5% of the investment in power grid, and the industrial Ethernet switch accounts for 3% of the investment in power grid automation system; The investment in automation control system accounts for 5.5% of the investment in power supply, and the investment in Industrial Switches accounts for 1.5% of the investment in automation control system. If the investment in power engineering construction keeps a compound growth of 2% in the next five years, it is expected that the power industry will bring an average annual market demand of 1.3 billion to industrial switches.

Urban rail transit is expected to increase the market demand by 1.6 billion each year. In 2020, 39 new urban rail transit lines will be added, with a new operating mileage of 1240.3 kilometers, an increase of 20.1% over the previous year. It is conservatively estimated that the new mileage will maintain a compound growth of 10% in the next five years. Assuming that the cost of a single kilometer is 800 million yuan, if the intelligent system accounts for 3% of the urban rail transit investment, The urban rail transit construction in the next five years will provide an annual market demand of 1.6 billion yuan for industrial switches. Therefore, with reference to the market share in previous years, considering that the newly increased market demand of the power and transportation industries accounts for 50%, it is estimated that the annual domestic industrial switch market demand is about 6.4 billion yuan.

The high-speed railway is expected to increase the market demand by 300 million every year. During the 13th Five Year Plan period, the annual traffic mileage of high-speed railway, high-speed railway and urban railway is 2337 / 1856 / 4050 / 4285 / 2520 kilometers respectively, with an average annual mileage of about 3000 kilometers. We assume that the average annual traffic mileage during the 14th Five Year Plan period remains stable, and the investment in single kilometer construction is 130 million yuan. Considering that the investment in information and digital system of high-speed railway accounts for 5% of the investment in high-speed railway, and the industrial Ethernet switch accounts for 2% of the investment in information and digital system of high-speed railway, The high-speed railway will bring an average market demand of 300 million yuan for industrial switches in the next five years.

Based on the independently developed industrial switch and network management platform NIS, Houshi network can form an industrial switch operation and maintenance management solution that integrates equipment discovery, ring network identification, port management, link monitoring, switch configuration, fault monitoring, network security and performance collection, and helps end users to occupy a favorable position in the process of smart factory upgrading. The company's products can be divided into three categories: Industrial Ethernet switch, industrial data optical transceiver and industrial optical transceiver. The industrial Ethernet switch is the main product of the company, which can be divided into two categories: network managed switch and non network managed switch.

At present, the company occupies a leading position among domestic industrial communication manufacturers. Its industrial communication network products have been widely applied and implemented in smart grid, nuclear power, wind power, petrochemical, rail transit, security and other industries. The company's autonomous controllable chips will help it further strengthen its competitive advantage in the future industrial network product competition, and at the same time, it will be greatly strengthened in the continuous supply guarantee of the supply chain, especially in the uncertain global supply chain environment. The company's independent chip has built-in chip level network security function, and the performance has been greatly improved. The subsequent company's network products can be extended to the field of network security, and the overall solution cost has been greatly reduced. The market space will be further opened.