A Brief Analysis of the Development Status of Industrial Automation in China

China's automation market size reached 186.5 billion yuan in 2019, an increase of 1.8% from 2018. With the gradual realization of the strategic objectives of the Intelligent Manufacturing Development Plan (2016-2020), the industrial automation control industry, as an important part of the intelligent manufacturing equipment industry, is expected to usher in good development opportunities.

Rapid development of the industry after the 1980s

Industrial automation technology is a kind of use of control theory, instrumentation theory, computers and information technology, industrial production process to achieve detection, control, optimization, scheduling, management and decision-making, to achieve the purpose of increasing production, improving quality, reducing consumption, ensuring safety and so on. Industrial automation control system as a comprehensive technology of intelligent manufacturing equipment. Industrial automation control system, as an important part of intelligent manufacturing equipment, is the key to the development of advanced manufacturing technology and the realization of modern industrial automation, digitalization, networking and intelligence, and is an important foundation for the realization of the optimization and upgrading of industrial structure, is widely used in machine tools, wind power, textile, lifting, packaging, elevators, food, plastics, construction, electronics, HVAC, rubber, mining, transportation, printing, medical, paper and power supply industries such as production equipment.

China's automation market reached 186.5 billion yuan in 2019, up 1.8% from 2018; by 2022, China's automation market is expected to reach 208.5 billion yuan. With the gradual realization of the strategic objectives of the Intelligent Manufacturing Development Plan (2016-2020), the industrial automation control industry, as an important part of the intelligent manufacturing equipment industry, is expected to usher in good development opportunities.

Domestic manufacturers of human-machine interface development momentum

Industrial control products in the human-machine interface (HMI), programmable logic controllers (PLC), servo systems, stepping systems, inverters, sensors, instrumentation, data acquisition and monitoring control systems (SCADA), distributed control systems (DCS)

In recent years, China's rapid economic development, manufacturing more areas to become the world's factory, the fast-growing demand for industrial control products, as well as good investment returns are expected to attract a number of internationally renowned industrial automation and control products manufacturers in China to invest in the establishment of wholly-owned or joint venture. At present, Europe and the United States, Japan and Taiwan well-known human-machine interface manufacturers with the brand and overall solution and other aspects of the advantages, in China's human-machine interface market has occupied a large market share. 2019 domestic human-machine interface market size reached 3.51 billion yuan.

China's independent research and development of human-machine interface began after 2000, through the development of nearly two decades, the main manufacturers have made greater progress in product performance, functionality, stability and other aspects of China's human-machine interface manufacturers as a whole has shown a good momentum of development, the issuer, Xintele Electric and other domestic human-machine interface manufacturers in the domestic human-machine interface market has occupied a certain market share.

Servo system refers to the position, speed, torque as the control quantity, can dynamically track the target change so as to realize the automation control system. 1970s, foreign servo system technology has developed rapidly, produced Germany Siemens, France Schneider, Japan Panasonic, Japan Mitsubishi Motors, Japan Yaskawa, Taiwan Delta and other internationally renowned enterprises. Among them, Japanese brands occupy a larger market share in China with good cost performance and high reliability, and have an advantage in the low-end equipment market, while European and American brands have an advantage in high-end equipment by virtue of higher product performance.The market size of China's servo system in 2019 is 9.6 billion yuan; the market demand for servo systems will maintain about 3-5% growth in the next three years, and the market size in 2022 will reach 11 billion yuan.

China's independent research and development of servo systems started late, the main independent research and development of production enterprises in this field started after 2000. Through the introduction, digestion and absorption of international advanced technology and other initiatives, domestic enterprises independent research and development of servo systems began to enter a rapid development stage, the quality of domestic servo system products and technology level continues to improve, and gradually in the domestic market to achieve a certain share; however, compared with the internationally renowned enterprises, there is still a certain gap in the overall performance, reliability.

In fiscal year 2019, the market share of Japanese brand representatives declined to 43.00%, the market share of European and American brand representatives declined to 9.00%, and the share of domestic brands continued to improve, of which Huichuan Technology and Lei Sai Intelligence occupied 10.70% and 2.30% of the market share, respectively. According to the company's servo system product sales revenue in 2019, the company's share of the domestic servo system market is 1.11%.

-- For more data and analysis, please refer to the China Intelligent Controller Industry In-depth Research and Investment Forecast Analysis Report by Prospect Industry Research Institute.