ENTERPRISE AI ANALYSIS
The Current Situation and Countermeasures of the Development of China's Industrial Software Industry
This paper analyzes the current development of China's industrial software industry, identifying key trends and proposing countermeasures for sustainable growth. It highlights the industry's rapid expansion, increasing market penetration of domestic software, and the critical role of government support and technological innovation. Challenges include a fragmented competitive landscape, a need for higher-level talent, and dependence on foreign giants in certain areas. Proposed solutions focus on learning from international experience, prioritizing technological breakthroughs, optimizing policy, enhancing talent training, deepening standard construction, and cultivating benchmark application scenarios.
Executive Impact
Key metrics illustrating the current landscape and future trajectory of China's industrial software sector.
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2024 Market Size (China Industrial Application Software)
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Year-on-Year Growth Rate (2024)
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Total Authorized Industrial Software Patents (as of Feb 2025)
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Small & Medium-Sized Enterprises (Registered Capital < 5 Million Yuan)
Deep Analysis & Enterprise Applications
Select a topic to dive deeper, then explore the specific findings from the research, rebuilt as interactive, enterprise-focused modules.
China's industrial software market is experiencing gradual growth, driven by demand for high-end manufacturing and government policies. The market reached 364.97 billion yuan in 2024, projected to hit 531.27 billion yuan by 2027. Domestic penetration is rising, with East China leading market share. The industry structure is improving, becoming a global market component.
The Chinese industrial software sector is fragmented, dominated by small and medium-sized enterprises (65% have less than 5 million yuan registered capital). While domestic leaders like Zhongwang Software (CAD), Digital Dafang (PLM), and UFIDA (ERP) hold notable market shares, they lag behind foreign giants in technology and overall market presence. The global market shares for CAD and CAE remain non-responsive to domestic players.
China is seeing a substantial increase in industrial software talent, concentrated in key regions like Guangdong, Beijing, Jiangsu, and Shandong. However, the proportion of high-level talent needs improvement. As of February 2025, there were 5,964 authorized industrial software patents, with 32% being invention patents. R&D investment by leading domestic firms like ZWsoft is significant but still a fraction of international counterparts.
Industrial software development is concentrated in economically advanced regions with strong industrial roots and dense manufacturing chains, such as the Yangtze River Delta, Pearl River Delta, Beijing, Shanghai, Guangdong, and Jiangsu. These areas also attract basic software suppliers and emerging technology companies, highlighting a regional imbalance in industry distribution.
Market Share Spotlight
40.5% Market Share in East China (Highest Regional Share)Context: Illustrates the regional concentration of industrial software development.
Enterprise Process Flow
1980s: Imitation & Development (2D CAD)
→
1986-2005: State Support (CAD, 863/CIMS)
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2006-2010: Support for 2D to 3D CAD Migration
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2010-2022: Rapid Development (Foreign Blockades & Domestic Industry Growth)
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Since 2023: Localization Substitution (Self-Designed Products)
| Software Category | Leading Domestic Player | Domestic Market Share | Key Strengths/Challenges |
|---|---|---|---|
| CAD | Zhongwang Software | About 5% |
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| PLM | Digital Dafang | About 4% |
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| ERP | UFIDA | About 3% |
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Context: Highlights the competitive landscape and market positioning of key domestic players.
Localization Acceleration via M&A
Company: Zongwang Software
Scenario: Zongwang Software strengthened its capabilities in power and fluid simulation by acquiring Beijing Bochao Times and CHAM (UK). This demonstrates a strategic approach to accelerate localization.
Impact: Significantly enhanced technical strength and reduced dependence on foreign technology in key simulation areas, boosting domestic substitution efforts.
Context: An example of a successful strategy for domestic technological advancement.
Calculate Your Potential ROI
Estimate the impact of optimized industrial software implementation on your operational efficiency and cost savings.
Potential Annual Savings
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Annual Hours Reclaimed
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Your Strategic Implementation Roadmap
A phased approach to integrate and leverage advanced industrial software within your enterprise, ensuring sustainable growth and competitive advantage.
Phase 1: Strategic Alignment & Talent Cultivation (0-6 Months)
Establish cross-functional steering committees. Prioritize technological bottlenecks (e.g., industrial simulation, EDA) and form collaborative innovation initiatives with universities/research institutes. Launch specialized university majors and vocational training programs for industrial software talents. Implement 'software first edition' policies.
Phase 2: Core Technology Breakthroughs & Standard Development (6-18 Months)
Focus R&D on 3D geometric modeling, multidisciplinary joint simulation, and industrial knowledge modeling. Deepen standard construction for interoperability and data security. Aggregate and develop high-level technical specifications and group standards. Support the transition of advanced group standards to industry/national standards.
Phase 3: Ecosystem & Market Expansion (18-36 Months)
Optimize the policy environment with incentives and subsidies. Support M&A among domestic software enterprises to build scale. Cultivate benchmark application scenarios, integrating industrial software with key manufacturing sectors (automotive, aerospace, energy). Promote successful cases and sharing mechanisms across the industry.
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