A Guide to Your Business in China

MARKET REPORT

2008 Report on China's Infrared Imaging

Device Market

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 Market Avenue 2008 Report on China's Infrared Imaging Device Market

Description

The infrared imaging device market can be divided into military and civil sub-markets, which are all in their infancy stage in
China. In developed countries, infrared imaging devices have already been part of the equipment for military ground
operations as well as the air force and navy. For example, each US soldier was equipped with 1.7 units of infrared imagers
on an average basis during the Gulf War. In contrast, this figure is very small for China's army, which spent less than
RMB1bn on infrared imaging equipment in 2008. But the potential military demand is huge in China. The current number
of China's troops is 2.3 million. If 10% of them are equipped with infrared imagers, the military demand would be 230,000
units in the country, and presuming an average price per unit of RMB100,000, the total value would be RMB23bn.

Figure 1: Effective Demand for Infrared Imaging Device in China's Civil Market, 2006-2011

21.2%
1,008
20.6% 20.6%
832
20.0% 690
572
480
400 19.2%

2006 2007 2008 2009E 2010E 2011E

Effective Demand (rmb m) Growth Rate

The effective demand for Infrared Imaging Devices in China's civil market was RMB572m in 2008, up by 19.2%
year-on-year, with a potential to increase at an average rate of about 20% annually in the next three years. By 2011, the
effective civil demand would go beyond RMB1bn. In general, there is still limited use of Infrared Imaging Devices in China.
The power industry is, as compared with other industries in China, the veteran in using infrared imaging for its prevention
testing, while the application of technology in other fields, including fire-fighting, construction, and safeguards and security
has not yet been promoted. However, the potential of civil demand for infrared imaging is huge too. The total demand of
above-mentioned four application markets—power supply, fire-fighting, construction, safeguards and security—is
estimated to be RMB20bn.

Table: Potential Size of China's Infrared Imaging Device Market

Unit Price: Scale (bn
Application Market Assumption
RMB RMB)
Military If 10% of the 2.3 million troops are equipped with infrared imagers 100,000 23
Fire-fighting One infrared imager for each of the 30k fire trucks 40,000 1.2
Power Supply 25,000 units of infrared imagers are needed 80,000 2.0
Construction One infrared imager for each of the 100,000 builders 20,000 2.0
Production Process One infrared imager for each of the 10% of 1.32 million producers
100,000 13.2
Control in metallurgy, electronics, and food industry
Total 41.4

China's infrared imaging system market is highly concentrated now, with 50% of the market held by three local companies:

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 Market Avenue 2008 Report on China's Infrared Imaging Device Market

Dali Technology, Guangzhou SAT Infrared Technology Co., Ltd. and Wuhan Guide, which all import focal plane detectors,
the key parts for Infrared Imaging Device, from France, while they design the circuits and image processing software by
themselves. On the other hand, almost all the homegrown producers other than the above-mentioned three are agents or
assemblers of Infrared Imaging Device, while almost all the research institutes stay only in the military field.

Figure 2: Market Share of Infrared Imaging Device for Civil Use in China, 2008

Others, 8% Dali Technology,

22%

Foreign Brands
including
FLIR/FLUKE,
35% Guangzhou SAT,
18%

Wuhan Guide,
17%

Table of Contents

Executive Summary

Chapter One: Overview of Infrared Imaging System

1.1 Definitions and Categories
1.2 Features of the Industry
1.3 Industrial Chain

Chapter Two: Overview of Global Infrared Imaging System Industry

2.1 Status Quo
2.1.1 Supply
2.1.2 Demand
2.1.3 Features
2.2 Infrared Imaging System Industry in Major Countries of the World
2.2.1 The U.S.A
2.2.2 Japan
2.2.3 Europe
2.3 Developing Trend of Global Infrared Imaging System Industry

Chapter There: Overview of China's Infrared Imaging System Industry

3.1 Development Environment
3.1.1 Governmental Policies
3.1.2 Technological Factors

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 Market Avenue 2008 Report on China's Infrared Imaging Device Market

3.2 Cycle of Development

3.2.1 Development Cycle of the Industry
3.2.2 Growth and Volatility
3.2.3 Maturity
3.3 Competitive Landscape
3.3.1 Industrial Concentration
3.3.2 Degree of Competition

Chapter Four: Operation of China's Infrared Imaging Device Industry

4.1 Status Quo
4.2 Mix of Products and Market Structure
4.3 Economic Effectiveness of the Industry
4.3.1 Industrial Climate and Profit
4.3.2 Gross Sales Profit
4.3.3 Costs and Expenses
4.4 Supply and Demand of Infrared Imaging Device in China
4.4.1 General
4.4.2 Total Import and Export Volume
4.4.3 Factors Influencing Import and Export

Chapter Five: Application Markets of Infrared Imaging Device in China

5.1 Healthcare Sector
5.1.1 China's Healthcare Sector in General
5.1.2 Application of Infrared Imaging Device in China's Healthcare Sector
5.2 Fire-fighting
5.2.1 China's Fire-fighting Sector in General
5.2.2 Application of Infrared Imaging Device in China's Fire-fighting Sector
5.3 Petrochemical Industry
5.3.1 China's Petrochemical Industry in General
5.3.2 Application of Infrared Imaging Device in China's Petrochemical Industry
5.4 Power Industry
5.4.1 China's Power Industry in General
5.4.2 Application of Infrared Imaging Device in China's Power Industry

Chapter Six: Major Producers of Infrared Imaging Device in China

6.1 Foreign Producers
6.1.1 Foreign Producers Entering China
6.1.2 Operation of Major Foreign Producers in China
6.1.2.1 InfraTec
6.1.2.1.1 Business Operation
6.1.2.1.2 Sales in China
6.1.2.1.3 Advantages and Disadvantages
6.1.2.2 FLUKE
6.1.2.2.1 Business Operation
6.1.2.2.2 Sales in China

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 Market Avenue 2008 Report on China's Infrared Imaging Device Market

6.1.2.2.3 Advantages and Disadvantages

6.1.2.3 IRISYS
6.1.2.3.1 Business Operation
6.1.2.3.2 Sales in China
6.1.2.3.3 Advantages and Disadvantages
6.2 China's Homegrown Producers
6.2.1 Wuhan Zirui Technology Co., Ltd.
6.2.1.1 Profile
6.2.1.2 Competitive Advantage
6.2.1.3 Corporate Strategy and Plans
6.2.2 Shanghai Deyun Optical & Electricity Technical Co. Ltd.
6.2.2.1 Profile
6.2.2.2 Competitive Advantage
6.2.2.3 Corporate Strategy and Plans
6.2.3 Guangzhou SAT Infrared Technology Co., Ltd.
6.2.3.1 Profile
6.2.3.2 Competitive Advantage
6.2.3.3 Corporate Strategy and Plans
6.2.4 Zhejiang Zybron Photoelectric Technology Co., Ltd.
6.2.4.1 Profile
6.2.4.2 Competitive Advantage
6.2.4.3 Corporate Strategy and Plans
6.2.5 Zhejiang Hongxiang Technology Co., Ltd.
6.2.5.1 Profile
6.2.5.2 Competitive Advantage
6.2.5.3 Corporate Strategy and Plans
6.2.6 Dali Technology
6.2.6.1 Profile
6.2.6.2 Competitive Advantage
6.2.6.3 Corporate Strategy and Plans
6.2.7 Beijing Xinyu Victory Equipment
6.2.7.1 Profile
6.2.7.2 Competitive Advantage
6.2.7.3 Corporate Strategy and Plans
6.2.8 Nanjing Kuyee Technology Company, Ltd.
6.2.8.1 Profile
6.2.8.2 Competitive Advantage
6.2.8.3 Corporate Strategy and Plans
6.2.9 Wuhan Huazhong Numerical Control Co., Ltd.
6.2.9.1 Profile
6.2.9.2 Competitive Advantage
6.2.9.3 Corporate Strategy and Plans
6.2.10 Wuhan Guide
6.2.10.1 Profile
6.2.10.2 Competitive Advantage

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 Market Avenue 2008 Report on China's Infrared Imaging Device Market

6.2.10.3 Corporate Strategy and Plans

Chapter Seven: Outlook for China's Infrared Imaging System Industry

7.1 Outlook
7.1.1 Industrial Environment
7.1.2 Developing Trend
7.2 Forecast for Development
7.2.1 Supply
7.2.2 Demand
7.2.3 Production Capacity
7.2.4 Import and Export

Chapter Eight: Investing in China's Infrared Imaging System Industry

8.1 Investment Opportunities
8.2 Investment Risks
8.2.1 Macro Control of Risks
8.2.2 Competition Risks
8.2.3 Risks of Unsteady Balance between Supply and Demand
8.2.4 Risks in Technological Innovation
8.2.5 Risks in Management
8.2.6 Other Risks

Selected Charts

Sales Amount and Growth Rate of Global Civil Infrared Imaging System Market, 2003-2008
Forecast for Supply in Global Civil Infrared Imaging System Market, 2009-2012
Demand Forecast for Global Military and Civil Infrared Imaging System Markets, 2009-2012
Profit of Major Producers of Infrared Imaging Device in China, 2007-2008 (Unit: rmb)
Gross Profit of Major Producers of Infrared Imaging Device in China, 2007-2008 (Unit: rmb)
Costs and Expenses of 15 Major Producers of Infrared Imaging Device in China, 2007-2008 (Unit: rmb)
Operational Efficiency of 15 Major Producers of Infrared Imaging Device in China, 2007-2008
Market Share of Producers of Thermal Imaging Systems for Civil Use in China, 2008
Market Share of Producers of Thermal Imaging Systems for Civil Use in the World, 2008
Output Value of Major Producers of Infrared Imaging Device in the World, 2008
Major Economic Indicators of Medical Instrument Manufacturing in China, 2008
Import and Export Amount of Medical Instruments in China, 2008

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