Industrial X-ray testing equipment: a blue ocean market with a scale of tens of billions

1.1 X-ray testing equipment: an important means of non-destructive testing

X-ray testing is one of the important means of non-destructive testing.

Non destructive testing refers to the use of physical or chemical methods combined with modern technology and equipment to examine the internal structure, state, and types, quantity, and defects of mechanical materials, without damaging or affecting the performance or internal organization of the tested object The method of inspecting and testing the shape, properties, position, size, distribution, and their changes.

Non destructive testing mainly includes five conventional testing methods, namely radiographic testing, ultrasonic testing, magnetic particle testing, eddy current testing, penetration testing, as well as some unconventional testing methods such as laser, electromagnetic wave, infrared, etc. Among them, X-ray testing is considered the most important detection method due to its non-destructive and fast detection method, as well as intuitive and clear detection results.

Working principle:

Firstly, the X-ray source generates X-rays; The difference in attenuation of X-rays penetrating materials of different densities (or thicknesses), that is, the number of remaining photons detected by X-ray detectors after penetrating the tested object is different, can obtain imaging of the internal structure of the tested object; Through image analysis, it is possible to determine whether there are defects and the types and levels of defects inside the object. At the same time, computer image processing systems are used to store images, ensuring the traceability of detection data.

With excellent detection capabilities, X-ray testing equipment is widely used in various fields.

According to the different application fields of X-ray testing equipment, X-ray intelligent testing is mainly applied in the medical and health fields and industrial non-destructive testing. Among them, industrial non-destructive testing is mainly applied in integrated circuit and electronic manufacturing, new energy batteries, casting welding parts and material testing, public safety, and other fields (such as the food industry):

1) Integrated circuit and electronic manufacturing field: including chip and integrated circuit manufacturing, as well as PCB printing, PCBA testing, etc;

2) New energy battery field: including power battery testing, energy storage battery testing, and consumer battery testing;

3) Castings, weldments, and material testing: including automotive components, integrated die-casting frame, aviation die-casting, weldments, and pressure vessels;

4) Public safety field: including security testing in public places (such as small luggage testing at airports, train stations, subways, etc.), vehicle testing (high-speed intersection vehicle testing, prison vehicle testing);

5) Other fields: including food safety, material testing, etc.

There are significant differences in the main technical parameters, packaging forms, and technical characteristics of X-ray testing equipment in different application fields.

Among them, integrated circuit and electronic manufacturing, new energy batteries, castings, welding parts, and material testing have high requirements for X-ray testing equipment, so the equipment value is also high. According to Frost Sullivan data, the market size of the three major fields mentioned above accounted for about 50% in 2021, and it is expected to increase to 70% by 2026.

1.2 Market Space: Billion scale with rapid growth

Downstream demand is high and booming, and the market size of industrial X-ray testing equipment is growing rapidly.

According to Frost Sullivan data, the market size of X-ray testing equipment in China (excluding the medical and health sector) in 2021 is about 11.9 billion yuan. Affected by the rapid growth of demand in downstream integrated circuits, electronic manufacturing, new energy batteries and other industries, X-ray testing equipment is expected to maintain a high-speed growth trend in the next five years, and is expected to reach 2026, The market size of X-ray testing equipment (excluding medical and health fields) in China is 24.14 billion yuan, with a CAGR of 15.2% from 2022 to 26.

1.3 Industrial Chain: The core barrier lies in upstream X-ray sources and X-ray detectors

Analysis of the X-ray testing equipment industry chain:

(1) Upstream: The X-ray testing equipment upstream includes components such as X-ray sources, X-ray detectors, high-voltage power supplies, multi axis linkage systems, ion pumps, control boards, etc. High end components heavily rely on overseas imports, and domestic substitution urgently needs to be broken through.

(2) Mid stream: The mid stream of X-ray testing equipment includes equipment design, detection algorithms, system integration, and manufacturing processes, involving the design and integration of imaging systems, scanning systems, etc. The demand for X-ray testing equipment varies among different testing fields, and currently only a few companies are able to achieve a multi-disciplinary layout. For example, Yxlon, a leading overseas enterprise, has laid out the fields of electronic manufacturing and integrated circuit testing, castings, weldments, and pressure vessel testing, while Japan United, a leading domestic manufacturer, has laid out the fields of electronic manufacturing and integrated circuit testing, battery testing, castings, weldments, and pressure vessel testing, and foreign object testing Security testing and other fields.

(3) Downstream: X-ray testing equipment has downstream customers in various industries, and leading enterprises in different fields often choose to use X-ray testing equipment with better comprehensive performance to ensure product quality and improve product yield.

2 Complete machines: Rapid growth in terminal demand and rapid promotion of domestic substitution

2.1 Integrated Circuit and Electronic Manufacturing

2.1.1 Market size: The market size is expected to reach 6.12 billion yuan in 2026, with a CAGR of 23.0% from 2022 to 2026

The field of integrated circuits and electronic manufacturing has high X-ray testing accuracy and strong demand. The field of integrated circuits and electronic manufacturing involves the manufacturing/assembly of electronic components, PCB printing, packaging, etc.

With the development of lightweight and intelligent electronic products, the size of semiconductors is constantly shrinking, and the requirements for integrated circuit packaging density are gradually increasing. Correspondingly, defect detection accuracy needs to reach the nanometer or micrometer level. Industrial X-ray testing equipment or microfocal X-ray testing equipment can meet the requirements of complex integrated circuits and electronic manufacturing processes for multi loop detection.

According to Frost Sullivan data, the market size of X-ray testing equipment in China's integrated circuit and electronic manufacturing sector was 2.34 billion yuan in 2021, with a CAGR of 11.2% from 2017 to 21. In the future, with the vigorous development of China's integrated circuit and electronic manufacturing industry, as well as the further expansion of demand for X-ray testing equipment from integrated circuit and high-end electronic manufacturers, it is expected that the market size will reach 6.12 billion yuan in 2026, with a CAGR of 23.0% in 2022-26.

2.1.2 Competitive landscape: Overseas manufacturers dominate, and the process of domestic substitution begins

Mainly overseas manufacturers, with a high market concentration.

Overseas manufacturers have a significant technological advantage over domestic manufacturers due to their early start and deep accumulation of technical experience. According to Frost Sullivan data, overseas enterprises currently account for over 75% of the X-ray testing equipment market in China's integrated circuit and electronic manufacturing fields.

Especially in the field of high-end integrated circuits and electronic manufacturing X-ray testing equipment, only a few Chinese companies, including Nippon Technologies and Shansi, have gradually entered the market. X-ray testing equipment in the field of integrated circuits and electronic manufacturing in China has gradually shifted from foreign monopolies to domestic substitutes.

According to Frost Sullivan's data, the current market share of Japan United Technology is 6%, which is at the leading level in China.

2.2 New energy batteries

2.2.1 Market size: The market size is expected to reach 5.80 billion yuan in 2026, with a CAGR of 28.9% from 2022 to 2026

The rapid increase in the shipment volume of new energy batteries has assisted in the expansion of the X-ray testing equipment market. The X-ray testing equipment in the new energy battery industry is mainly used in the fields of new energy batteries such as power battery testing for new energy vehicles, consumer battery testing, and energy storage battery testing.

According to Frost Sullivan's data, the market size of X-ray testing equipment in the battery testing field was 1.32 billion yuan in 2021.

With the rapid expansion of power battery and energy storage battery enterprises' production capacity and the further improvement of battery safety awareness, the demand for X-ray testing equipment in this field has grown rapidly. It is expected that the market size will reach 5.8 billion yuan in 2026, and the CAGR from 2022 to 26 will be 28.9%.

2.2.2 Competition pattern: The domestic substitution rate is relatively high, and the market share of domestic companies exceeds 90%

Chinese enterprises dominate the market with a market share of over 90%. Thanks to the rapid development of China's power battery and energy storage battery industry upstream and downstream, as well as the strong demand for non calibrated X-ray testing equipment in this field, the localization of X-ray testing equipment in China's power battery and energy storage battery field is relatively high.

According to data from Frost Sullivan, Chinese companies account for over 90% of the market share, including Zhengye Technology, Lianhe Technology, Dual Technology, and Dacheng Precision. The main participating enterprises abroad are Yingduo Meili and others.

2.3 Castings, Weldments and Materials

2.3.1 Market size: The market size is expected to reach 4.42 billion yuan in 2026, with a CAGR of 17.0% from 2022 to 2026

The continuous growth of industrial markets such as automotive components, aerospace, and pressure vessels has driven an increase in demand for X-ray testing equipment for castings, weldments, and materials. X-ray image detection technology, as the most intuitive, sensitive, and convenient image detection method for quantitative analysis in the field of casting, welding parts, and material detection, has irreplaceable advantages and has been widely applied in various defect detection and diagnosis, mainly including:

1) Metal casting parts (including various automotive components, integrated die-casting frame, industrial machinery parts, rail transit hub, etc.);

2) Sensitive structural components (such as aerospace, military components, etc.);

3) Pressure vessels (such as high-pressure boilers, gas cylinders, gas tanks, etc.);

4) Scene detection such as pipe welding. Therefore, the demand for X-ray testing equipment is gradually increasing with the overall expansion of the automotive market, aerospace, and other industries.

According to Frost Sullivan data, the market size of X-ray testing equipment in the field of castings, welding parts, and materials in 2021 was nearly 2.11 billion yuan. It is expected that the market size will exceed 4.42 billion yuan in 2026, and the CAGR for 2022-26 is 17.0%.

2.3.2 Competition pattern: There are many market participants, and the market share of domestic manufacturers is relatively scattered

There are many market participants, and overseas enterprises are relatively leading. The overseas participants in the field of castings, weldments, and materials mainly include Zeiss, Ecovision, Phoenix, etc. Their equipment technology is advanced and the value of a single equipment is high, which is widely used in fields such as automobiles and aerospace. Domestic companies such as Nippon Union Technology, Huari University of Science and Technology, and Dandong Aolong are relatively leading, and are the main competitors and challengers in the market position of foreign enterprises. According to Frost Sullivan data, foreign companies account for about 60% of the market share, while domestic manufacturers have a relatively dispersed overall market share.

3 core components: high-end components rely on imports, and independent and controllable are imperative

3.1 X-ray source: core components of X-ray testing equipment, high-end dependence on imports

3.1.1 X-ray source: Microfocal X-ray source can meet high-precision detection requirements with high technical barriers

Working principle: In an X-ray tube, electrons emitted from the cathode are accelerated by an electric field between the cathode and anode, which bombards the X-ray anode target and transfers its kinetic energy to the atoms on the target. About 1% of the energy is converted into X-rays and emitted from the X-ray irradiation window. Due to the high energy and strong penetration of X-rays, they are widely used in fields such as medical health and industrial image detection.

Main parameters:

(1) Focus size: determines the accuracy of the detected image. The smaller the focus size, the higher the detection accuracy.

(2) Tube voltage: determines the photon energy and penetration ability of X-rays. The higher the tube voltage, the stronger the penetration ability.

(3) Tube current: determines the quality of image signal-to-noise ratio. The higher the tube current, the greater the photon dose, and the better the imaging signal-to-noise ratio.

X-ray sources are divided into microfocal point line sources, high-power ray sources, and ordinary ray sources based on their different performance characteristics. Among them, microfocal X-ray sources refer to ray sources with focal sizes ranging from tens of micrometers to less than 1 micrometer. They are difficult to develop and have high technical barriers, and can meet high-precision testing requirements. They are mainly used in precision manufacturing fields such as integrated circuits, electronic manufacturing, and new energy batteries.

According to different sealing methods, microfocal X-ray tubes are divided into open (open tube) and closed (closed tube):

1) Closed tube X-ray source: Both the cathode and anode/target are enclosed in a vacuum tube, and there is no need to vacuum during use. Due to its low maintenance cost, long service life, and short startup time, it is commonly used in precision testing fields such as integrated circuits and electronic manufacturing, new energy batteries, etc;

2) Open tube X-ray source: Equipped with a vacuum pump and valve, the cathode and anode/target of the open tube can be replaced. Open tube microfocal ray sources have the characteristics of smaller focal size and higher maximum tube voltage, higher magnification and stronger penetration, but they require maintenance and are expensive, and are often used in high demand scientific research or integrated circuit fields.

3.1.2 Market size: The market size of microfocus X-ray sources in 2026 is 2.48 billion yuan, with a CAGR of 27.7% from 2026 to 2026

The high demand in the downstream has driven the rapid growth of demand for core component X-ray sources.

According to Frost Sullivan data, the market size of X-ray sources in China (excluding the medical sector) in 2021 was 2.276 billion yuan, with a CAGR of 11.7% from 2017 to 21. In the future, China will continue to vigorously develop the integrated circuit industry; At the same time, under the dual carbon policy and energy transformation strategy, the power battery and energy storage battery market has entered a period of rapid development.

The continuous growth of downstream industry demand will significantly benefit the development of the X-ray source market. It is expected that the X-ray source market size will reach 5.425 billion yuan in 2026, with a CAGR of 19.0% from 2021 to 26.

The demand for high-precision detection is becoming increasingly strong, and the growth of microfocal X-ray sources is becoming more rapid.

According to Frost Sullivan data, the market size of China's microfocus X-ray sources (excluding the medical field) in 2021 was 730 million yuan, with a CAGR of 17.73% from 2017 to 21. In the future, with the continuous increase in demand for high-precision testing in the precision manufacturing field, it will drive the rapid expansion of the micro focus X-ray source market. It is expected that the market size of the micro focus X-ray source will reach 2.48 billion yuan in 2026, with a CAGR of 27.71% from 2021 to 26.

3.1.3 Competitive landscape: Microfocal point shooting line sources are monopolized by overseas manufacturers, and Nippon Technologies achieves a 0-1 breakthrough

The technical barrier to microfocus X-ray sources is the highest, while overseas manufacturers implement strict technical protection and supply monopoly on microfocus X-ray sources, which seriously restricts the sustainable development of downstream industries. In recent years, some Chinese manufacturers have also continued to invest in research and development in this field and made certain progress, but their overall market share is relatively small. With the continuous promotion of the wave of localization, local Chinese manufacturers are expected to occupy a place in the micro focal point laser source market and achieve domestic substitution in the future.

(1) Open tube micro focus source: The open micro focus X-ray source is mainly monopolized by companies such as Ecotron, Finetech, and X-WorX, and domestic manufacturers have not yet achieved technological breakthroughs.

(2) Closed tube micro focus source: The technology and supply of closed hot cathode micro focus X-ray source are mainly monopolized by Japan's Hamamatsu Photonics and the United States' Thermo Fisher, with a total market share of over 85%. They can provide a full series of micro focus line sources of 90kV, 110kV, 130kV, 150kV and above.

Affected by factors such as the increasing demand for testing in downstream application fields, Hamamatsu Photonics and Thermo Fisher Scientific successively proposed to increase sales prices or reduce supply in 2022