Dongxing Securities: Policy support and AI empowerment for new industrialization, the industry is expected to usher in accelerated development

According to the Zhitong Finance APP, Soochow Securities released a research report stating that China's industrial large models and industrial intelligent entities are evolving rapidly, with a flourishing of industrial large models across various sectors. Most industrial information and digital companies in different industries have released industrial large models based on their products and industries. The penetration rate of industrial intelligent entities is gradually increasing. National policies strongly support AI-enabled new industrialization, and the firm expects that there will be subsequent supportive policies related to industrial AI, which is likely to usher in accelerated development in the industrial AI sector.

The main points from Soochow Securities are as follows:

Industrial AI has entered a stage of widespread adoption

Industrial AI refers to the application of AI technology in the industrial field, optimizing and intelligentizing industrial production processes through advanced computational intelligence methods such as machine learning, deep learning, and computer vision, ultimately helping enterprises improve production efficiency, reduce costs, and enhance product quality, achieving digital transformation. The development of industrial large models is transitioning from initial emergence to widespread exploration, with more and more industrial enterprises beginning to layout and utilize industrial AI technology.

The market size of industrial AI could reach trillions

Industrial scenarios have scaling characteristics, where even minor improvements in AI (such as a 1% reduction in energy consumption or an increase in yield) can yield exponential returns in mass production. The global industrial AI market size is expected to reach USD 43.6 billion by 2024 and USD 153.9 billion by 2030.

National policies strongly support AI-enabled new industrialization

On August 26, 2025, the State Council issued the "Opinions on Deepening the Implementation of the 'Artificial Intelligence+' Action." The policy clearly states: Promote the intelligent development of all elements in the industry. Accelerate the application of artificial intelligence across all links of design, pilot testing, production, service, and operation. Zhang Yunming, Vice Minister of the Ministry of Industry and Information Technology, explicitly stated that "developing artificial intelligence is a must-answer question, not an optional question, for achieving the key task of new industrialization."

Industrial AI is a distinctive strategic direction for China's AI development

The strategic orientation of AI development in China has a distinct characteristic, placing greater emphasis on the intelligent transformation of the secondary industry, especially manufacturing. China's rich industrial scenario resources, data resources, and complete industrial chain and supply chain systems provide a unique development soil for AI technology. From 2024 to 2029, the compound annual growth rate of China's AI + industrial software sub-market is expected to reach 41.4%.

Related targets

R&D and design: Zhongwang Software, Suochen Technology, BGI, Kailun Electronics, Guangli Micro, Nengke Technology, Haocen Software, etc. Manufacturing: SUPCON, Baoxin Software, SIE, Hand Information, Digiwin Software, etc. Operation and maintenance services: Rongzhi Rixin.

Risk warning: The development of AI technology may fall short of expectations, the localization of industrial software may not meet expectations, and the level of policy support may be less than anticipated