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"Price war" forces sensor companies, and the Internet of Things has become a new fertile ground

 Last Update: 2021-06-17
 Source: Internet
 Author: User

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[ Focus on Chemical Machinery and Equipment Network ] With the society’s demand for information technology improvement, as well as the impact of the epidemic and the international environment, localized sensors have made considerable progress in technology and the market, giving domestic sensor companies more room for development.
Wide
.
With more and more sensor companies entering the game, price wars are hard to avoid
.

Chemical machinery equipment network hotspots focus on chemical machinery equipment sensors

It can be said that most industries have price wars, so in the sensor industry, will the price war between companies make the industry regress or force it forward?

Proliferation of local sensor companies

Since last year, the number of domestic sensor companies has been increasing.
According to the company's data, in the first half of 2020 alone, there were 2,369 domestic sensor companies that have increased, and so far, there are about 50,000 domestic sensor-related companies.

.

What is the concept of adding 2369 new houses? Let us look at a set of data.
From 2010 to 2013, the number of new registrations of sensor-related companies per year was less than 2,000, and the number of new additions in 2020 is not the largest and fastest year.
2014 is China's sensor-related The fastest growing year for enterprises, the number of newly registered enterprises in that year was close to 3000, an increase of 56% year-on-year
.
The growth rate in 2019 is even more rapid, with more than 7,600 newly registered companies in the sensor industry
.

　　The author believes that the biggest reason for the rapid growth in the number of companies in recent years is that related application scenarios such as the Internet of Things, consumer electronics, and "new infrastructure" have been greatly improved.
The market is getting bigger and bigger, and companies can go into it when they target vertical scenarios.
Drill
.

　　However, with the gradual maturity of the company’s product line and business line, the stability of industry demand and the pressure of competing products, companies have to face a very difficult problem, how to maintain the existing business and market share, or to iterate the product, or Carry out the method of taking price wars to reduce profits to be stable
.

　　From a rational analysis of the market, the product iteration time period is generally very long, so more methods for companies to stabilize the market are to adopt price wars
.

　　The classic case of price wars is that foreign sensor companies are suppressing domestic brands.
In 2010, a switch from Omron was close to 400 yuan.
Now with the gradual rise of Chinese brands, it now only costs 60 yuan.
Faced with price wars, domestic brands are under pressure.
It is conceivable that in this case, how to be fully integrated in the industry may be the question they think about the most
.

　　When communicating with companies, the author found that sensor manufacturers such as temperature and humidity sensors, gas sensors or millimeter wave radars are currently facing price competition among domestic counterparts, especially large foreign sensor companies like Omron.
Price suppression measures will be adopted for small and medium-sized enterprises
.

　　"Price war" forces companies to adjust their routes

　　From the earliest international price war, to domestic and foreign sensor companies are fighting price wars
.
For companies, in addition to being able to stabilize their market share, there is another most important reason, that is, controlling the market share of segments is more conducive to the company's cutting of leeks in the capital market
.

　　According to the data from the company, 68% of sensor-related companies in China have capitals of less than 5 million yuan, and 34% of them have registered capitals of less than 1 million yuan
.
It can be seen that most local sensor companies are small and medium-sized enterprises
.
So under the price war, it is very difficult for these small and medium-sized enterprises to survive.
If they are in the high-end market, compared with foreign giants, the cost pressure is very large.
If they are in the low-end market, then the enterprise The advantage in price is basically negligible
.

　　For example, the price of commonly used fingerprint sensors is less than US$2, and the gross profit margin of commonly used sensors is basically only 10-20%
.
Relevant industry sources said that such industry development status can only force companies to find more subdivided application scenarios, or extend downstream, involving sensor modules, terminals, and landing projects
.

　　On the other hand, sensor price wars will also force sensor manufacturers to think about how to improve efficiency? How to promote the development of sensors to high growth areas? In addition, the reversing effect of sensor manufacturers is beneficial to the development and promotion of the entire industry
.

　　The price war of sensors has forced companies to start strategic selections on sensor modules and terminals.
In addition to automotive electronics and consumer electronics, the Internet of Things has become a key target for these sensor companies
.

　　In the field of Internet of Things, intelligent networked vehicles, environmental monitoring, and consumer Internet of Things have become key areas of downstream extension of sensor companies, including lidar, water quality sensors, water level sensors, flexible sensors, and human body monitoring sensors.
These fields are for domestic Small and medium-sized enterprises have brought more room for development beyond fierce competition
.

　　The scale and number of IoT terminals are very large.
It is estimated that 75 billion IoT devices will be put into use by 2025.
Among them, industry, logistics, health, and medical care will all be popular application areas, which are expected to reach hundreds of billions.
Dollar scale
.
At the same time, in domestic Internet of Things projects, local companies have more advantages in terms of shipping speed and related technical support
.

　　According to industry insiders, as far as the current situation is concerned, it is difficult for many large foreign companies to provide technical support on projects, and our domestic companies can provide related technical services very quickly.
This will also become a domestic sensor company gaining domestic access through the Internet of Things.
Important timing for a place in the market
.

　　Original title: "Price war" forces sensor companies, and the Internet of Things has become a new fertile ground

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