Core Viewpoint - The article discusses the "one-stop" offline docking event for key products and processes in the Yangtze River Delta region, aimed at promoting collaborative innovation and accelerating the localization of core products and processes by integrating various industries and regions [1][3]. Group 1: Event Overview - The event took place on March 15, 2026, in Shanghai, gathering representatives from the industrial and information departments of Shanghai, Jiangsu, Zhejiang, and Anhui, as well as national think tanks and leading enterprises from the industry chain [1][3]. - Key officials, including the Deputy Director of the Planning Department of the Ministry of Industry and Information Technology, delivered speeches, emphasizing the importance of collaborative development in the Yangtze River Delta [3]. Group 2: Strategic Partnerships - A significant cooperation signing ceremony occurred, where representatives from various enterprises in the Yangtze River Delta signed multiple strategic cooperation agreements covering areas such as AI-integrated cloud-native CAD, hydrogen compression technology, and CT detector development [5]. - The signing marked a transition from top-level design to practical implementation of the "one-stop" model, indicating a solid step towards collaborative cooperation across the industry chain [5]. Group 3: Key Projects - The "AI-integrated cloud-native 3D CAD project" aims to overcome challenges in traditional industrial software by utilizing AI to understand proprietary knowledge and physical continuity requirements, enhancing the manufacturing process in sectors like precision instruments and aerospace [6][7]. - The "high-pressure large-displacement membrane hydrogen compressor" project has achieved a significant upgrade, increasing hydrogen transport capacity by over 60% and reducing operational costs by 20%, addressing short-distance transport bottlenecks [8]. - The "photon counting CT detector" project aims to break the monopoly of foreign companies by developing a domestic detector that improves image clarity by three times while reducing radiation dosage to one-third, with a target to launch commercially viable products within two years [9]. Group 4: Future Implications - The successful hosting of the "one-stop" docking event has established an efficient communication bridge for the industry chain, injecting confidence into tackling core technologies and enhancing resilience in key industries across the Yangtze River Delta and nationwide [12]. - The ongoing development of this collaborative model is expected to support the advancement of Chinese manufacturing towards higher value chains [12].

工业软件行业丨研究报告 摘要： 工业软件具有发展的紧迫性和必要性，且当前处于政策红利带的有利时间窗口期。 当前，我国工业和经济达到分水岭，经济体发展需要创新驱动，而工业软件作为工业知 识 的 载体，既是新型工 业化的核心生产资料和关键生产力，又是工业大脑和数字基 石，其 自主可控意义深远。不同于 国外工业软件是 先工业后软件的自然生长 ，我国的工业 软件先是用市场换 效 率，后是工业 和软件同步的压缩 式 发展，现在是追赶核 心技术可控，保障供应链安全。因此，当前工业软件既有发展的必要性，又有发展的紧迫性。 工业软件是一个慢行业，发展需要耐心和长期主义思想，同时在变化与重构中，也为企业带来机遇与挑战。 中国的工业软件市场是千亿的大盘子， 2024 年市场接近 3000 亿，市场增长稳健， 但 核心技 术空心、产业结构失衡等 问题凸显。当前，研发设计类工业软件是卡脖子最为 严重，其本质 是与数学 与基础 学科相关的根技术缺乏海量真实工业场景试错进行工程优化，表现为实体就是核心组件 / 引擎层受限。值得注意的是，根技术的突破没有捷 径可走，只能死磕 。 工业软件产业处于动态发展中，未来产业、市场、产品的发展方向值 ...

Investment Rating - The report does not explicitly state an investment rating for the industrial software sector in China, but it highlights significant growth potential and ongoing trends in domestic software development and market penetration. Core Insights - The development of the industrial software sector in China is driven by three main factors: policy guidance, market demand, and technological advancements. The government supports domestic software through strategic policies, while manufacturing needs for efficiency and quality drive demand for systems like MES (Manufacturing Execution Systems) [9][10]. - The report emphasizes the acceleration of domestic production software's localization process, particularly in the context of Industry 4.0 and the integration of AI technologies, which are expected to enhance automation and decision-making capabilities in manufacturing [10][19]. Summary by Sections 1. Current State of the Industrial Software Industry - The industrial software sector is crucial for controlling, executing, and optimizing production processes, essential for achieving smart manufacturing. It includes production control software (DCS, SCADA, PLC) and manufacturing execution systems (MES) [19][26]. - The domestic market has seen a significant increase in the localization of production control software, with high replacement rates in certain areas, although reliance on foreign technology remains in high-end programmable logic controllers (PLC) [19][26]. 2. Localization Progress and Evolution of Sub-sectors - **MES Software**: The domestic MES market is projected to reach 6.29 billion RMB by 2024, with local vendors gaining significant market share due to their adaptability and cost-effectiveness [41]. - **CIM Software**: Domestic CIM solutions have made notable advancements, particularly in the semiconductor sector, where they are increasingly replacing foreign systems [49][54]. - **PLC Software**: The report notes that domestic PLC manufacturers are gradually moving into the mid-to-large PLC market, although challenges remain in software ecosystem development and operating system compatibility [55][60]. 3. Case Studies of Key Companies - The report analyzes several leading companies in the industrial software space, including: - **Zhongkong Technology Co., Ltd.**: Leading in DCS market share and expanding into international markets [66]. - **Holley Technology**: Dominating the DCS market in power generation with a comprehensive product line [66]. - **Saimate Information Group**: A key player in the CIM sector, particularly in semiconductor manufacturing [48]. 4. Future Development Trends - The industrial software sector is expected to evolve towards integrated business processes and ecosystem reconstruction, with a focus on high-precision control scenarios and deeper integration of AI technologies [10][19]. - The report anticipates that the localization of industrial software will continue to accelerate, driven by policy support and technological advancements, particularly in the context of smart manufacturing [10][19].

Investment Rating - The report maintains an "Overweight" rating for the industrial software industry, driven by domestic localization and intelligent transformation [1]. Core Insights - The domestic industrial software market is experiencing rapid growth, with a compound annual growth rate (CAGR) of 13.20% from 2019 to 2023, significantly outpacing the global market [10][25]. - The localization rate in the research and design software segment is currently low at around 10%, indicating substantial room for domestic manufacturers to replace foreign competitors [10][31]. - External pressures, such as U.S. export restrictions on key software, are accelerating the need for domestic self-sufficiency in industrial software [11][41]. - The integration of AI into industrial software is expected to drive significant advancements, with the AI+ industrial software market projected to grow at a CAGR of 41.4% from 2024 to 2029 [47]. Summary by Sections 1. Rapid Growth of Domestic Industrial Software Market - The industrial software sector is crucial for China's industrial transformation, enhancing efficiency and product quality while reducing costs [20]. - The market share of research and design software is currently only 8.5%, highlighting a significant gap compared to embedded software, which holds a 57.4% share [21][23]. - The domestic industrial software market size is expected to reach approximately 3,390 billion yuan by 2025 [25]. 2. Localization and Intelligent Transformation 2.1 External Pressures and Policy Support - U.S. restrictions on industrial software have highlighted the urgency for China to develop its own capabilities [11][41]. - The Chinese government has introduced various supportive policies to bolster the industrial software sector, including targets for software updates and technology upgrades [43][44]. 2.2 AI Integration - AI technologies are increasingly being integrated into industrial software, enhancing development efficiency and creating new market opportunities [47]. - The penetration rate of AI in industrial software is expected to rise from 9% in 2024 to 22% by 2029 [47]. 3. Key Companies in the Industry 3.1 Huada Jiutian - Huada Jiutian is a leading domestic EDA company, providing a comprehensive suite of EDA tools for integrated circuit design, manufacturing, and packaging [59]. - The company is the only domestic provider of a complete EDA tool system for analog circuit design, filling a critical gap in the market [59].

Core Viewpoint - The article discusses the significant rise of China's industrial software sector, highlighting its transition from reliance on foreign imports to a growing domestic market with increasing innovation and market share [2][11]. Group 1: Current State of Industrial Software - In 2019, 95% of R&D design industrial software in China relied on imports, indicating a significant dependency on foreign technology [2]. - As of 2024, domestic software's market share in the PLM sector has reached 30%, with plans to replace 200,000 sets of industrial software with domestic alternatives by 2027 [3][12]. - The industrial software market is crucial for enhancing product development, production efficiency, and resource optimization in various sectors, including manufacturing and aerospace [7]. Group 2: Historical Context - China's industrial software industry faced a decline over the past 20 years due to competition from foreign giants and the prevalence of pirated software [9][10]. - The 1990s saw the emergence of several domestic software companies, but the market share of domestic software continued to decrease, with EDA software's domestic rate at only 5% by 2020 [9][10]. Group 3: Recent Developments and Opportunities - The demand for domestic software has surged due to geopolitical factors and government policies promoting local innovation [12]. - Many state-owned and private enterprises are increasingly willing to collaborate with domestic software providers, creating new opportunities for growth [12][13]. - The rise of AI technologies is accelerating the development and adoption of domestic industrial software, allowing for more flexible and efficient solutions [30]. Group 4: Investment Strategies - Companies like 汇川技术 (Inovance Technology) are actively investing in the industrial software sector, having invested in eight companies since 2021 [3][18]. - The investment strategy focuses on long-term growth, with a typical industrial software company requiring 5-10 years to establish a sustainable business model [19][21]. - Successful investments are characterized by teams with deep industry knowledge and a commitment to long-term development [21][23]. Group 5: Future Outlook - The integration of AI into industrial software is expected to enhance product development processes and improve operational efficiency [30][31]. - The article emphasizes that the future of China's industrial software industry will be shaped by its ability to innovate and adapt to new technologies, positioning it as a key driver of the manufacturing sector's transformation [37].