1.2023Industrial Automation Market Overview

According to data from the Champ Consulting Group,2022The size of China's industrial automation market in2807Billion yuan, year-on-year growth10.9%, is expected2023Year-on-year growth of about11%Maintain the rapid growth trend.2022The size of the global industrial automation market in4575Billion yuan, year-on-year growth5.9%，23-25YearCAGRAbout6%. From a global perspective, Asia is the main growth engine of the industrial automation market, especially in emerging countries such as China and India. Benefiting from the huge demographic dividend, the settlement of the foundry industry, and the booming development of e-commerce, the demand for industrial automation equipment continues to be strong.

From the perspective of market structure, industrial automation equipment can be divided into control layer equipment (suchPLC、HMI、CNCetc.), drive layer equipment (such as frequency converters, servo drives, etc.), execution layer equipment (such as servo motors, valves, etc.) and perception layer equipment (such as various sensors, etc.). Among them, the control layer equipment is the core component to realize the collection, processing and output of various parameters and signals in the production process, occupying a high added value and profit space; the driving layer equipment is the key component to realize various motion control in the production process, occupying a large market share and growth potential; the executive layer equipment is the executive component to realize various actions in the production process, it has a high technical threshold and stable demand, and the perception layer equipment is the basic component to realize the detection and conversion of various physical quantities in the production process, which has lower cost and profit, but also has more innovation space and application scenarios.

From the market growth rate,2023The expected growth rates for each segment of China's industrial automation market for the full year are as follows:PLCAbout12%，HMIAbout10%, the frequency converter is about9%, the servo is approximately15%, the sensor is approximately8%. Among them, the servo market has the highest growth rate, mainly benefiting from industrial robots,3Cthe rapid development of high-end manufacturing industries such as electronics and semiconductors;PLCThe second largest market growth rate is mainly due to the upgrading and transformation of traditional manufacturing industries such as intelligent manufacturing, new energy and chemical industry; the lowest growth rate of frequency converter market is mainly affected by the fluctuation of cyclical industries such as electric power, metallurgy and building materials.

From the perspective of market trends, the industrial automation market is facing the following changes:

"Industry4.0”The promotion and implementation of the concept has promoted the development of industrial automation equipment in the direction of intelligence, networking, digitization and integration, and improved the information transparency, data analysis ability and resource optimization ability in the production process;

The support and encouragement of national industrial policies have promoted the wide application of industrial automation equipment in strategic emerging industries such as new energy, new materials, and new technologies, and traditional manufacturing industries, and improved product quality, efficiency and competitiveness;

The aging of the population and rising labor costs have promoted the alternative demand of industrial automation equipment in labor-intensive industries such as textiles, logistics, and food, and improved the safety, stability and flexibility of the production process;

The acceleration of the domestic substitution process has promoted the technological innovation and market breakthrough of industrial automation equipment in the control layer, drive layer and other high-end fields, and increased the market share and influence of domestic brands.

2.2023Industrial Automation Market Supply and Demand Analysis in

2.1 Market Supply Analysis

The suppliers of the industrial automation equipment market mainly include the following categories:

International big factory: suchABBSiemens, Schneider Electric, General Electric, Emerson Electric, Honeywell, etc., these enterprises have strong technical strength, brand influence, channel advantages and customer resources, and occupy a high market share and profit space in the world. These enterprises mainly focus on the R & D and production of control layer equipment and drive layer equipment, and also provide integrated solutions and services to meet the needs of customers in different industries and fields. These companies also have a deeper layout and influence in the Chinese market, but they also face the challenges and pressures of domestic substitution.

Domestic leaders: such as Huichuan Technology, Goodway, Inventive, Zhongheng Electric, Mindray Medical, etc., these companies have strong technological innovation capabilities, cost control capabilities, market expansion capabilities and customer service capabilities, and occupy a larger market in the domestic market Share and growth potential. These enterprises mainly focus on the development and production of drive layer equipment and execution layer equipment, but also in the control layer equipment and perception layer equipment layout and breakthrough, to provide more perfect and diversified products and solutions to meet the needs of customers in different industries and fields. These companies also have a certain degree of competitiveness and influence in the international market, but they are also facing competition and resistance from major international companies.

Domestic small and medium-sized enterprises: such as Kelu Electronics, Central Control Technology, Xinjie Electric, Cosda, Huazhong CNC, etc., these enterprises have a high degree of focus, flexibility, innovation and adaptability, in the domestic market to occupy a certain market share and growth space. These enterprises mainly focus on the research and development and production of perception layer equipment and some execution layer equipment, but also in the control layer equipment and drive layer equipment to follow up and imitate, to provide more low-cost and differentiated products and solutions to meet the needs of customers in different industries and fields. These enterprises also have a certain export volume and influence in the international market, but they also face technical barriers and quality problems.

In terms of supply structure, according to data from the Champ Consulting Group,2022The localization rates for each segment of China's industrial automation market in 2012 were as follows:PLCAbout20%，HMIAbout40%, the frequency converter is about44%, the servo is approximately46%, the sensor is approximately60%. Among them, the sensor market has the highest localization rate, mainly benefiting from the maturity and perfection of the domestic sensor industry chain and the advantages of domestic brands in the low-end market;PLCThe localization rate of the market is the lowest, which is mainly subject to the monopoly and barriers of international large factories in the high-end market, as well as the lack of domestic brands in technological innovation and brand awareness.

From the perspective of supply trends, the supply side of the industrial automation equipment market is facing the following changes:

The acceleration of the domestic substitution process has promoted the technological innovation and market breakthrough of domestic brands in high-end fields such as control layer equipment and drive layer equipment, and increased the market share and influence of domestic brands.2023The localization rate of each segment of China's industrial automation market will be increased to about25%（PLC）、45%（HMI）、48%(Inverter),50%(servo),65%(Sensor).

The acceleration of the integrated layout has promoted the transition of domestic brands from a single product to an integrated solution, and increased the added value and profit space of domestic brands. Domestic brands have gradually had a more complete industrial chain, taking into account the price side.15%-20%advantages and faster service response speed, domestic brands are expected to accelerate the breakthrough.

The deepening of international cooperation has promoted the complementarity and synergy between domestic brands and international major manufacturers in terms of technology, channels, and customers, and improved the technical level and market expansion capabilities of domestic brands. Domestic brands have gradually gained recognition and trust in the international market. Considering the continuous improvement of quality and the advantages of localization, domestic brands are expected to accelerate their sailing.

2.2 market demand analysis

The demand side of the industrial automation equipment market mainly includes the following categories:

Traditional manufacturing industries: such as electric power, metallurgy, building materials, chemicals, automobiles, etc., these industries are the main sources of demand for industrial automation equipment, occupying a large market share and stable demand. These industries mainly rely on the demand of the project-based market, which is greatly influenced by policy, cycle, environmental protection and other factors, and the demand fluctuates greatly. These industries mainly have high demand for control layer equipment and driver layer equipment, but also have certain demand for execution layer equipment and perception layer equipment.

High-end manufacturing: such as industrial robots,3CElectronics, semiconductors, medical equipment, etc., these industries are the main growth drivers of industrial automation equipment, occupying a higher growth rate and potential. These industries rely primarily onOEMThe demand of the market is greatly influenced by factors such as technology, consumption and export, and the demand is growing rapidly. These industries mainly have high demand for drive layer equipment and execution layer equipment, and also have certain demand for control layer equipment and perception layer equipment.

Emerging industries: such as new energy, new materials, new technologies, etc., these industries are the main innovation areas of industrial automation equipment, occupying a high added value and prospects. These industries rely primarily on project-based markets andOEMThe demand of the market is greatly influenced by policy, technology, market and other factors, and the demand changes rapidly. These industries mainly have high demand for control layer equipment and perception layer equipment, and also have certain demand for drive layer equipment and execution layer equipment.

From the demand structure,2022The market size of each segment of China's industrial automation market is as follows:PLCAbout300billion yuan,HMIAbout150Billion yuan, the frequency converter is about600billion yuan, the servo is about200billion, the sensor is about100Billions of dollars. Among them, the inverter market is the largest, mainly benefiting from the demand for energy conservation, emission reduction and efficiency improvement in traditional manufacturing industries such as electric power, metallurgy, and building materials; the servo market is the smallest, mainly constrained by industrial robots,3CHigh-end manufacturing industries such as electronics and semiconductors require high precision and high speed.

From the perspective of demand trends, the demand side of the industrial automation equipment market is facing the following changes:

The promotion and implementation of intelligent manufacturing has promoted the wide application and upgrading of industrial automation equipment in traditional manufacturing and high-end manufacturing, and improved the transparency of information, data analysis capabilities and resource optimization capabilities in the production process. Intelligent manufacturing refers to the process of intelligently controlling and optimizing the management of equipment, systems or processes in the production process by using information technologies such as the Internet, the Internet of Things, cloud computing, big data, and artificial intelligence. Intelligent manufacturing is an important means to realize the transformation and upgrading of manufacturing industry, improve production efficiency and quality, reduce cost and resource consumption, and enhance the competitiveness of enterprises.

The acceleration and expansion of new energy construction has promoted the innovative application and market expansion of industrial automation equipment in the field of new energy, and improved the energy saving, emission reduction and environmental protection benefits in the production process. New energy refers to the use of solar energy, wind energy, hydropower, geothermal, biomass and other renewable energy, or the use of nuclear fusion and other future energy, clean, efficient and sustainable energy production and utilization process. New energy is an important means to realize the adjustment of energy structure, ensure energy security and cope with climate change.

The aging population and rising labor costs have promoted the alternative demand and market growth of industrial automation equipment in labor-intensive industries such as textiles, logistics, and food, and improved the safety, stability and flexibility of the production process. Population aging refers to the increasing proportion of the elderly population in the population, resulting in insufficient labor supply and increased social burden. Rising labor costs refer to the continuous increase in the wage level of workers in the labor market, leading to the increase in production costs and the compression of profit margins.

3.2023Industrial Automation Market Development Prospects in

3.1 market opportunities

In 2023, the industrial automation market will face the following opportunities:

The support and encouragement of national industrial policies provide policy dividends and market space for the industrial automation market. The state takes manufacturing power as one of the national development strategies and has issued a series of policies or guidelines, such as "Made in China".2025"New Generation Artificial Intelligence Development Plan", "Guiding Opinions on Accelerating the Construction of Manufacturing Innovation Centers", etc., aim to promote the transformation and upgrading of the manufacturing industry, innovative development, and quality improvement, and provide policy guidance and financial support for the industrial automation market.

The rapid development and innovation needs of emerging industries provide technology-driven and market demand for the industrial automation market. Strategic emerging industries such as new energy, new materials and new technologies are the key industries developed and cultivated by the state, with high technological content, added value and prospects, and high demand for industrial automation equipment. it provides opportunities for technological innovation and market expansion for the industrial automation market.

The development of the international market and the improvement of competitiveness have provided the industrial automation market with channels and brand influence. With the continuous improvement of domestic brands in terms of technical level, product quality, service capabilities, etc., as well as their advantages in price and localization, domestic brands have gradually gained recognition and trust in the international market, providing the industrial automation market with overseas channels and brand influence.

3.2 market challenges

In 2023, the industrial automation market will also face the following challenges:

The competition and resistance of international large factories have formed technical barriers and market pressure on the industrial automation market. International large factories have strong technical strength, brand influence, channel advantages and customer resources in high-end fields such as control layer equipment and drive layer equipment, and occupy a high market share and profit space worldwide. International large factories also have a deep layout and influence in the Chinese market, which constitutes a technical barrier and market pressure on domestic brands.

Industry cyclicality and uncertainty have caused demand fluctuations and risk prevention in the industrial automation market. The demand side of the industrial automation market mainly includes traditional manufacturing, high-end manufacturing and emerging industries. These industries are affected by policies, cycles, environmental protection, technology, consumption, exports and other factors, and their demand fluctuates greatly. At the same time, these industries are also facing a variety of uncertainties such as epidemics, trade wars, exchange rates, and raw materials, and demand is changing rapidly.

Lack of talent and innovation, the industrial automation market has brought development bottlenecks and competitive disadvantages. The industrial automation market is a huge market involving multiple industries, multiple fields, and multiple levels. It needs to be supported by talents with rich professional knowledge, skills and experience. However, at present, the lack and loss of talents in the field of domestic industrial automation has led to the lack of technological innovation and service capabilities, which has affected the development speed and competitiveness of domestic brands.

4. Champ Consulting Group Recommendations

Based on the above analysis, the Champ Consulting Group believes that,2023The industrial automation market is a market full of opportunities and challenges. It is recommended that domestic brands adopt the following strategies:

Seize the policy dividend and market space, accelerate the layout and expansion of strategic emerging industries such as new energy, new materials, and new technologies, and traditional manufacturing industries, and improve the project-based market andOEMmarket share and influence.

Grasp the technology drive and market demand, accelerate technological innovation and market breakthroughs in high-end fields such as control layer equipment and drive layer equipment, and increase the added value and profit margin in intelligent manufacturing, energy saving and emission reduction, and alternative demand.

Seize the influence of overseas channels and brands, accelerate the development and competition in emerging markets such as Asia, Africa, and Latin America, and improve the development of industrial robots,3CThe competitiveness and influence of high-end manufacturing industries such as electronics and semiconductors.

Grasp the ability of personnel training and innovation, strengthen cooperation and exchanges with universities, scientific research institutions, and industry associations, and improve the ability and level of talent reserve, technology research and development, and service support.

Shangpu Consulting Group is a consulting organization specializing in the field of industrial automation. It has rich industry experience, professional knowledge and customer resources. It provides one-stop solutions for domestic and foreign industrial automation companies such as market research, strategic planning, project consulting, and training services. Shangpu Consulting Group is willing to work with you to create a better future for the industrial automation market!