2019 China Clean Room Market: Electronics Industry Still the Largest Source of Demand
Source: State Administration of Work Safety, Chinabaogao.com
Translated by: Cleanroom Guangzhou Exhibition Committee
Analysis of China’s clean room market 2019: market status & prospects
Over the years, the clean room market has witnessed a rapid boom as semiconductor and flat panel display suppliers shift their productions to China, and China and Europe published regulations on GMP and CGMP respectively. In 2015, the clean room project market was worth RMB 76.8 billion, and anti-static ultra-clean product market worth RMB 76.4 billion. China is in the midst of industrial upgrading. The production shift of semiconductor and photoelectric suppliers, together with structural optimization will boost the high-tech industry’s development.
Downstream industries including integrated circuit, photoelectric, pharmaceutical and healthcare providers would develop rapidly at this stage. Given the growing market, the increasing number of companies and technological progresses, downstream industries have higher standards on manufacturing environment and soaring demand for clean room projects and ultra-clean products. (For example, clean room class 100 or 10 is used to manufacturing large integrated circuits.)
Chinese Institute of Electronics expected that by 2019, the clean room project market worth would grow from RMB 43.2 billion in 2012 to RMB 126.9 billion at a compound rate of 19.65 percent. The growing market boasts huge potential and brings big opportunities to leading companies.
China Clean Room Market Analysis from 2012 to 2018
Electronics industry takes up the largest share of clean room market, especially for the production of integrated circuits and flat panel displays, both of which require high cleanliness level and technology.
About LCD Panel
As the construction of production lines slowed in South Korea and Taiwan region, China’s LCD manufacturers started to grow. In 2016, China has produced 77 million LCD panels, 32% of the world total. This is the first time that Mainland China had occupied more market share than Taiwan region(25.5%). By March 2017, China had topped the LCD screen for smart phone, tablet screen, laptop screen markets, and emerged as the largest producer of big screen panels followed by South Korea. China is to build 8 high generation panel production lines, 2 low generation panel production lines and 7 AMOLED lines, which will produce 0.84 million, 70,000 and 0.188 million panels monthly to facilitate the development of clean room industry.
The authority predicts that by 2020, China would produce semiconductors at an annual growth rate of not less than 20 percent. Backed by government funds, investments on integrated circuit started to surge. Mainland China is the major driver for the global growth of semiconductors. From 2011 to 2016, sales for semiconductors in Mainland China has increased from RMB 317.6 billion to RMB 637.8 billion at a compound rate of 20.2 percent. It was expected that in 2017, China would sell RMB 720.1 billion worth of semiconductors, up by 12.9 percent in 2016. China has 10 12-inch wafer suppliers that can produce 0.58 million wafers a month. From 2017 to 2020, 62 wafer factories will go into operation, 26 of which will be based in China. 6 of China-based wafer manufacturers was expected to be put into operation in 2017, and in 2018, this number would go up to 13. Most of the wafer factories whose constructions would be completed in 2018 are foundries. In 16/14-nano chip process, $ 0.15-0.16 billion is needed to produce 1000 silicon chips. If 5-nano chip process is widely applied in the future, it would cost $ 1 million to build a chip production line. Given that, if the construction fee of clean room accounts for 10 percent of the line cost, RMB 0.6 billion would be needed to build clean room for each line.
Sales Volume of integrated circuits in China from 2010 to 2016
About medical equipment
To encourage China GMP conform to international GMP, the government has introduced GMP-2010 that was to become effective from March 1st 2011. Medical device companies need to complete certification within 5 years by December 2015. Around 2,000 companies failed to be certified and quit the market, and thereby the demand for clean room projects for pharmaceutical companies will drop in 1-2 years. However, clean room technology is still embraced by drug manufacturers as some of them need to expand production, build new pharmaceutical factories and even adopt more advanced clean technology.
About pharmaceutical and medical device industries
China has nearly 8,000 drug manufacturers and 14,000plus medical device suppliers, both of which can produce 60plus different forms and over 4,500 types of chemicals, over 300 types of biological products, 3000 different medical devices. In 2016, the market was worth over 3 trillion and grew at the rate of 10 percent. China has 19 pharmaceutical companies registered in Europe, US and Japan, or approved by cGMP, over 10 agent manufacturers approved by WHO, 20 drug producers on the process of registration or approval and over 50 companies to apply for cGMP certificate. China is the third largest pharmaceutical market following US and Japan. In 2015, drug expenditure totaled RMB 465.3 billion. Since 2009, drug expenditure has grown at a compound rate of nearly 25 percent. The income growth and rapid ageing tendency means the demand for medicines in China keeps soaring.
As world industry develops, anti-static/clean room products and services are widely applied in industries including communication equipment manufacturing, aerospace, precise machining, chemical, food processing and automobile. As Robot manufacturing system rapid develops, its manufacturing section requires higher cleanliness level to improve production yield and accuracy without manual intervention. Clean technology will be also adopted by industries such as aerospace, ship & diving equipment, semiconductor lighting, solar battery and quantum computing to create stable market demand.
Sales Volume and Growth Rate of Medicine and Medical Devices 2010 - 2016
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