What are scientific instruments? How is the industry market structure?
Scientific instruments refer to tools or devices used to detect, measure, observe, and calculate various physical quantities, material components, and physical parameters. They are divided into four major categories: analytical instruments, life sciences, physical experiments, and chemical experiments. In 2023, China's scientific instrument market size exceeded 220 billion yuan, with a growth rate of over 12%. Overall, the concentration of the scientific instrument market is relatively low. Currently, the market share of domestic brands in China's scientific instrument industry is far lower than that of foreign brands, and the road to domestic substitution is long. The State Council, the National Development and Reform Commission, the State Administration of Taxation, and other departments have successively issued policy documents to promote the development of domestic instruments and equipment, encourage domestic manufacturers to innovate, facilitate the application of domestic equipment, and support the development of domestic scientific experimental instrument manufacturers.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323843277022.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323843277022.png"/>
Source: RimeData, Lai Mi Data WeChat Official Account, Tianfeng Securities Research Institute
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323873762055.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323873762055.png"/>
Source: Huajing Industry Research Institute, ITTIME WeChat Official Account, Zhan Research WeChat Official Account, Tianfeng Securities Research Institute
What is the market structure of scientific analytical instruments?
Scientific analytical instruments: The market is vast, but the domestic production rate of mass spectrometers and chromatographs is still relatively low. According to data released by SDI, the global laboratory analytical instrument market size was approximately 75 billion USD in 2022, with a compound annual growth rate of about 5.6% from 2016 to 2022.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323892756958.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323892756958.png"/>
Source: Haineng Technology Prospectus, Zhiyan Consulting WeChat Official Account, Zhongyan Network, Lidin Industry Research Institute, Tianfeng Securities Research Institute
Mass spectrometers: In 2023, the domestic market reached 16.712 billion yuan, with foreign companies occupying over 90% of the global mass spectrometer market share. Meanwhile, the overall import rate of mass spectrometers has shown a gradual decline. According to estimates, the import rate decreased from 89% in 2018 to 81% in 2023. We believe the main reasons are: 1. Overseas brands establishing factories in China for R&amp;D and production; 2. The competitiveness of domestic brands has improved, gradually increasing their market share from the mid to low end. Triple quadrupole and high-resolution mass spectrometers are the most mainstream product series, with significant room for replacement, and domestic manufacturers have made breakthroughs in this field
In 2022, the domestic market size of liquid phase triple quadrupole mass spectrometers reached USD 600 million, with over 96% occupied by overseas brands, indicating a large market space for domestic alternatives. FPI launched a triple quadrupole ICP-MS/MS, applied in ultra-trace impurity analysis in semiconductors; Hexin Instrument's high-end triple quadrupole mass spectrometer is under research, expected to break through technical bottlenecks within five years; LabTech's LabMS 5000 ICP-MS/MS has successfully entered several leading chip, photovoltaic, and panel manufacturing companies in China.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323934373877.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323934373877.png"/>
Source: Yiyun Technology WeChat Official Account, Zhiyan Research Institute WeChat Official Account, Tianfeng Securities Research Institute
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323958175604.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323958175604.png"/>
Source: Zhuotao Consulting WeChat Official Account, Tianfeng Securities Research Institute
The domestic market space for chromatographs is approximately RMB 16 billion, with a significant share of gas and liquid chromatographs still occupied by overseas markets, while some domestic manufacturers have already developed the capability to compete with overseas companies in niche areas. In the first half of 2024, the top four bidders for liquid mass spectrometers were all overseas manufacturers; however, in the relatively smaller market space of gas mass spectrometers, domestic brands Fuli and Pannuo ranked fourth and fifth. In the slightly smaller market space of ion chromatographs, Qingdao Shenghan ranked second in the number of ion chromatographs bid in 2024, only behind Thermo Fisher, with a share of approximately 25.8%; it ranked third in bid amount, accounting for 18.9%. WanYi Technology's ion chromatograph ranked fourth in bid amount.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323997673234.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752323997673234.png"/>
Source: Chemical Instrument Network WeChat Official Account, Tianfeng Securities Research Institute
Spectrometers: It is expected that by 2025, the domestic market space will exceed RMB 10 billion. Compared to foreign brands, domestic brands have advantages in price and service, thus possessing significant competitiveness in the mid-to-low-end market. Foreign brands such as Thermo Fisher, PerkinElmer, and Bruker continue to lead in the high-end market due to their deep technical accumulation and brand influence. Currently, in government procurement, domestic companies still find it difficult to compete with them.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324025990534.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324025990534.png"/>
Source: Chemical Instrument Network WeChat Official Account, Tianfeng Securities Research Institute
What is the situation of the electronic measurement instrument market?
Electronic measurement instruments: Developing towards the mid-to-high-end market. According to forecasts, the global electronic measurement instrument market size will reach USD 16.307 billion by 2024. The domestic growth rate is faster than overseas, and the market space may exceed 40 billion yuan in 2024. Oscilloscopes and RF instruments are the two types of general-purpose electronic measurement instruments with the highest market share. The overall electronic measurement market products are relatively dispersed, and the domestic market size for oscilloscopes is expected to increase to USD 650 million by 2025. From 2020 to 2024, the proportion of imported high-end oscilloscopes has remained above 85%, but this proportion is gradually shrinking, reflecting that high-end oscilloscopes in China are still mainly imported products. However, as domestic production continues to advance, the proportion is gradually decreasing. Classified by bandwidth, oscilloscopes with a bandwidth below 4GHz account for only 10% of the market share, while those with a bandwidth above 13GHz account for 70%.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324051950212.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324051950212.png"/>
Source: Huajing Industry Research Institute WeChat Official Account, Zhiyan Consulting WeChat Official Account, Tianfeng Securities Research Institute
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Source: China Customs, Tianfeng Securities Research Institute
The domestic oscilloscope market is dominated by several international brands, with leading companies being Tektronix, Keysight, and Rohde &amp; Schwarz, all of which are American companies. The domestic manufacturers in a leading position are RIGOL, SIGLENT, and UNI-T, but there is still a significant gap compared to foreign companies. As China increases investment in upstream ADC chips, FPGAs, and other fields, domestic oscilloscope manufacturers are gradually transitioning from economical oscilloscopes to the mid-to-high-end market. Domestic oscilloscope manufacturers have already developed core oscilloscope chips independently, especially in analog front-end chips and ADC chips, achieving the capability of self-developed chips, breaking through the technical barriers of bandwidth and sampling rate, and overcoming the technical limitations of oscilloscopes with 4GHz bandwidth and 20GSa/s sampling rate, initially possessing the ability to compete with foreign leading manufacturers in the high-end market with bandwidth above 4GHz.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324086630657.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324086630657.png"/>
Source: Keysight Technology WeChat Official Account, Tektronix WeChat Official Account, Teledyne LeCroy WeChat Official Account, RIGOL WeChat Official Account, SIGLENT WeChat Official Account, UNI-T WeChat Official Account, Tianfeng Securities Research Institute
What changes are occurring in the industry under trade friction?
There is still room for alternatives in U.S. imports, and one must be strong to forge ahead. Currently, the U.S.-China tariff war is ongoing. In 2024, the Chinese government will introduce a series of specific measures to promote the development of high-tech industries, strengthen research infrastructure, and encourage domestic substitution. Leading companies in the international instrument industry are accelerating their localization processes. Taking mass spectrometers as an example, after the imposition of tariffs in 2018, the import amount from the U.S. significantly decreased in 2019. We believe that most of the market share lost by U.S. manufacturers has flowed to domestic manufacturers. Under the premise of the current round of tariffs, the direct imports of mass spectrometers and other sub-sectors from the U.S. account for a high proportion, indicating significant room for substitution, which is expected to replicate the scenario of 2019, potentially providing opportunities for domestic manufacturers.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324100995010.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324100995010.png"/>
Source: Instrument Information Network WeChat Official Account, Tianfeng Securities Research Institute
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324116696941.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324116696941.png"/>
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324130858795.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324130858795.png"/>
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324143419963.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752324143419963.png"/>
Source: Customs Data, Tianfeng Securities Research Institute
What investment opportunities are available?
It is recommended to focus on: comprehensive scientific instrument companies and targets that achieve breakthroughs in high-end segments. FPI (domestic scientific instrument leader, accelerating promotion with triple four-level leverage), LabTech (steady revenue growth, expecting product volume increase), Haineng Technology (leading company in chromatography, early industrial layout through mergers and acquisitions), Hexin Instrument (leading domestic mass spectrometry technology with independent R&amp;D capabilities), RIGOL (core technology self-research, smooth expansion of high-end products), SIGLENT (accelerating high-end domestic substitution), UNI-T (steady performance growth, continuation of high-end trend), and Wanyi Technology (broadening product lines combined with high-end promotion to assist domestic substitution)
Risk Warning: Downstream demand is below expectations; R&amp;D and certification progress of high-end products are below expectations; trade friction risks.
This article is reprinted from the &#34;Tianfeng Research&#34; WeChat public account, edited by Song Zhiying from Zhitong Finance

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The scientific instrument market will exceed 220 billion yuan in 2023, with a growth rate of over 12%. The market share of domestic brands is lower than that of foreign brands, and the road to domestic substitution is long. Policy support promotes the development of domestic instruments and encourages innovation. The market for scientific analytical instruments is vast, the import rate of mass spectrometers is gradually decreasing, the competitiveness of domestic brands is increasing, and there is significant market potential

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RIGOL

LabTech

SIGLENT

Hexin Instrument

UNI-T

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