Market Research of TDLAS Gas Sensing System in Mainland China, 2015-2020

1. Overview of Industry

1.3 Industry and Driving Factors

1.3.1 Industry Chain

Whole industry chain of TDLAS consists of components manufacturers, gas sensing system manufacturers and gas sensing system users in downstream.

1. Components mainly sold in the upstream of TDLAS gas sensing system include: TDLAS gas sensor, tunable semiconductor lasers, host, bus, casing, laser probe, detector and processing modular etc, the upstream component manufacturers almost are monopolized foreign enterprises. As core component, the global market of TDLAS gas sensor is almost monopolized by Siemens etc few enterprises. With the constant development of technology, the domestic TDLAS gas sensing technology has broke up international monopoly. Focused Photonics has been capable to research all technologies independently and has taken most of market shares in China, their target customers mainly are TDLAS sensing system manufacturers and OEM manufacturers.

2. the midstream of TDLAS gas sensing system include TDLAS gas sensing system manufacturers, OEM manufacturers and foreign manufacturers, in which, TDLAS gas sensing system manufacturers and OEM manufacturers are primary. In domestic enterprises, Focused Photonics is one leading brand in this industry, their TDLAS gas sensing system is mainly sold to steel and petrochemical industries etc.

3. In the downstream of TDLAS gas sensing system, the application industries are extensive, involving in steel, petrochemicals, power, atmosphere environment protection, coal mine safety monitoring, natural gas, electronics and automobile manufacturing etc industries. However, in respect of current market demand, steel, petrochemicals and atmosphere environment protection are the major industries with demands for TDLAS gas sensing system. At present, China has strict requirements on steel manufacturers, such as: output reduction, emission requirements and energy consumption etc, for example, China has stipulated that the steel output in Hebei will reduce to 60 million t by 2017. 

1.3.2 Driving Factors

Tab.3: Factors Driving Development of TDLAS Gas Sensing System Industry

Driving industries Driving Factors

International influence In 2014, the global application of TDLAS gas sensing system continued to be increased, and more and more toxic and harmful gases are demanded. For example, in 2014, the global sales of Siemens TDLAS gas sensing system was 600 sets, it was estimated by the related staffs in enterprise that the sales will hit 800 sets by the end of 2015, the demand increased rapidly, however, the domestic TDLAS gas sensing system only accounted for about 15% of global market shares. Under the background of rapid growth of global demand, the market demand for TDLAS in China will certainly increase rapidly.

Domestic driving China government has developed national standard: GB-T25476-2010: Tunable laser gas analyzer for TDLAS gas sensing system industry, so as to regulate the development of TDLAS gas sensing system.

China government is very supportive to enterprises’ independent innovation and R&D of new technology and encourages enterprises to research and develop new technology and products as well as provides capital and social support for enterprises.

In recent years, China government takes strict corrective and remedial measures for atmosphere protection industry and highly harmful industries, so as to promote and increase market demand of TDLAS gas sensing system faster and better.

Source: Enterprise Interviewing, Association Experts Interviewing, Huidian Research.

2. Development Status Quo of TDLAS Gas Sensing System Market

2.1 Overseas Market Status Quo

2.1.1 Global Market Capacity

According to the Sales of Siemens, Neo Monitors and SICK AG etc foreign brands of TDLAS gas sensing system in China and global and experts’ analysis on TDLAS product Marketization, it can be known that the global market scale of TDLAS sensing system was USD 883 million in 2014.

In 2010-2012, influenced by global financial crisis, the growth rate of global economy slowed down, which caused the demand for TDLAS sensing system to shrink, and market scale grew slowly; in 2013-2014, the recovery foundation of global economy tended to stable and financial situation had been improved, the recovery of application industries accelerated the TDLAS sensing system industry. Investigation suggested that the global market scale of TDLAS sensing system was USD 880 million in 2014, up 7.32% over last year.

Tab.4: Global Market Scale of TDLAS Sensing System, 2010-2014

Source: Enterprise Interviewing, Association Experts Interviewing, Huidian Research.

2.1.2 Global Market Development Trend

With the discovery of world economy, the demand for TDLAS gas sensing system was enlarged further, it is predicted that it will increase steadily by 8%-9% in future. By 2020, the global market scale will hit USD 1.475 billion.

Tab.5: Global Market Scale of TDLAS Sensing System, 2015-2020

Source: Enterprise Interviewing, Association Experts Interviewing, Huidian Research.

2.2 Status Quo of TDLAS Sensing System Market in China

2.2.1 Domestic Market Capacity

Influenced by complicated global economy situation, the domestic economy has entered into New Normal, the market of TDLAS gas sensing system in China keep growing steadily. Investigation suggested: in 2014, the market scale of TDLAS gas sensing system stood at CNY 856 million in China, up 8.56% over last year.

Tab.6: Market of TDLAS Sensing System in China, 2010-2014

Source: Enterprise Interviewing, Association Experts Interviewing, Huidian Research

2.2.2 Proportion of China Market in Global

With the constant increase of demand for TDLAS gas sensing system in China, by 2014, the market scale of this product hit CNY 856 million, accounting for 15.8% of global market scale. Through comprehensive analysis, it is predicted that: by 2018, the TDLAS gas sensing systems in China will account for 16.3% of the total ones in global.

Tab.7: Proportion of China Market in Global

Source: Enterprise Interviewing, Association Experts Interviewing, Huidian Research.

2.2.3 Domestic Market Development Trend

In future, the monitoring and management on high pollution industries in China, mainly referring to steel, atmosphere environment, petrochemical and power industries, promote the demand for TDLAS products, it is predicted that TDLAS gas sensing system will increase by over 9% in future, and by 2020, the market scale will hit CNY 1.485 billion.

Tab.8: Market Scale of TDLAS Sensing System in China, 2015-2020

Source: Enterprise Interviewing, Association Experts Interviewing, Huidian Research.

2.3 Technical Development Home and abroad

At present, internationally, the enterprises adopting TDLAS technologies mainly are Siemens, Neo Monitors in Norway and SICK MAIHAK in Germany. Based on TDLAS technology, all foreign enterprises integrate independent R&D, production and sales and realize production and sales integration.

The domestic enterprises adopting TDLAS technology mainly are classified into independent R&D, agent sales and OEM enterprises, in which, as one of main representatives of independent R&D enterprises, Focused Photonics issued national standard: GB/T25476-2010 Tunable laser gas analyzer in 2012.