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CleanroomTopic: Industry Demand Continues to Expand, Expected to Maintain Growth Momentum in the Future
Cleanroom: Basic Engineering Service for High-End Manufacturing
A cleanroom is an enclosed space that controls airborne pollutants within a specific range to meet the requirements of product production processes. In terms of application fields, industries that require cleanrooms in their production or operation processes include electronics, biomedicine and healthcare, food, precision instruments, aerospace, etc. Different industries and production links have varying requirements for cleanliness: among them, electronic industries such as chip manufacturing, TFT-LCD, and hard disk drives (HDD) have high requirements for cleanliness, while industries like pharmaceuticals and food have relatively lower cleanliness requirements.
From the perspective of domestic demand, China is strongly supporting high-end manufacturing at present, leading to a robust demand for cleanroom projects. The market size grew from 76.755 billion yuan in 2015 to 214.614 billion yuan in 2021, with an annual growth rate of over 10%; it is expected that this growth rate will remain above 10% in the future.
Demand Side: Semiconductor, Big Health, and New Energy Jointly Support High Industry Growth
China strongly supports the development of high-end manufacturing, and downstream industries of cleanrooms such as semiconductors and new energy have received policy support. As an important part of high-end manufacturing, the cleanroom industry benefits from a large number of supportive industrial policies covering semiconductors, pharmaceuticals, clean energy, etc. The scale expansion of these downstream industries will further drive the development of the cleanroom industry.
Semiconductor sector: IT and AI drive the growth of computing power demand. China is the world’s largest chip consumer market, but the market share of domestic chips has long been at a low level. In addition, recent changes in the international situation have further boosted the demand for domestic substitution. Moreover, with the continuous implementation of AI applications, the demand for computing power is expected to rise in the future. According to IC Insights, the scale of China’s chip market was 143 billion US dollars in 2020 and is expected to reach 223 billion US dollars in 2025, with a compound annual growth rate (CAGR) of 9.3%; the output value of domestic chips in China was 22.7 billion US dollars in 2020 and is expected to reach 43.2 billion US dollars in 2025, with a CAGR of 13.7%. The continuous expansion of the domestic chip market scale is likely to further drive capital expenditure, promoting the growth of cleanroom project demand.
Big health sector: Population aging stimulates medical and health demand, providing long-term driving force for the scale of cleanroom projects. Against the irreversible trend of aging, the increase in the elderly population and the enhancement of residents’ health awareness will push up medical demand, injecting impetus into the development of big health-related industries (pharmaceuticals, medical devices, etc.). According to Frost & Sullivan, China’s pharmaceutical market will maintain rapid growth from 2021 to 2025, with the market size expected to reach 2.2873 trillion yuan in 2025, at a CAGR of 9.6%; the market size of China’s medical device industry will grow at a CAGR of 10.9% from 2020 to 2025, reaching 1.2267 trillion yuan in 2025.
New energy sector: The continuous growth of photovoltaic installed capacity drives the expansion of corporate capital expenditure. The U.S. Inflation Reduction Act provides high subsidies for green industries whose main production links are completed in the United States; the European Union has established the European Solar Photovoltaic Industry Alliance, aiming to achieve 30GW of local photovoltaic manufacturing capacity by 2025. China’s 14th Five-Year Plan for Renewable Energy Development proposes that the total installed capacity of wind power and solar power should exceed 1.2 billion kilowatts by 2030, which will also drive domestic enterprises to increase capital expenditure and stimulate the demand for the cleanroom market.
Side: Leading Enterprises Have Distinct Advantages, with Great Potential for Breakthroughs in High-End Fields
The low-end market of the cleanroom industry has a large number of enterprises with small scales, while the competition pattern in the high-end market is relatively better. Leading enterprises have a long development history, advanced technologies, rich project experience, and outstanding capabilities in undertaking high-end projects. In the past few years, cleanroom engineering enterprises have continuously expanded their supply, but the growth rate of new enterprises has slowed down since the 2020 epidemic. Relying on their comprehensive strength advantages, leading enterprises’ dominant position in mid-to-high-end projects helps them build their own brands and makes them more likely to stand out in the market. At the current stage, considering that the cleanroom industry as a whole is expected to maintain high growth in the future, and that the demand for computing power under the influence of AI may drive capacity expansion, the sector targets deserve attention.
