my country's industrial automation market has huge potential Research on the localization of the industrial automation industry

Industrial automation has become one of the core technologies of modern manufacturing, which can efficiently help equipment improve the quality and output of production, and reduce consumption.

Investigation on the localization rate of industrial automation in my country

In 2021, the scale of my country's industrial automation market will exceed 250 billion yuan. According to Gongkong data, my country's industrial automation market will reach 253 billion yuan in 2021, a year-on-year increase of 23.0%, and the compound growth rate since 2008 is 6.5%.

It is estimated that the industrial automation market will grow by 11.3% to 281.6 billion yuan in 2022. From the composition point of view, the industrial automation control system is divided into six categories of subsystems: control system, drive system, motion system, feedback system, execution system and others. In 2021, the feedback system, control system, and drive system will account for 23.6%, 21.6%, and 20% respectively, and the motion system and execution system will account for 15.8% and 11.4%, respectively.

Big but not strong, and low localization rate in subdivided fields are the main problems in my country's industrial automation market at present. On the other hand, although my country's industrial automation market is a large market of over 200 billion yuan, it is a common problem that it is large but not strong, and the localization rate of various important fields is low.

According to data from institutions such as MIR, the market share of self-owned brands in servo systems with a high localization rate in 2021 will only be 43.3%, and the localization rate in fields such as PLC (programmable logic controller) and high-end CNC machine tools will be even lower. Less than 7%. As the current international situation is more complex and changeable, it is particularly important to solve these key "stuck" links in the manufacturing industry.

Taking lithium batteries as an example, the production process of lithium batteries is extremely complex, which mainly includes stirring, coating, rolling, sheet making, winding/stacking, assembly, liquid injection, sealing, formation, volume separation, PACK and other process sections. As well as online testing, logistics and transportation, etc., involving a wide variety of equipment. Among them, industrial automation has become one of the core technologies of modern manufacturing, which can efficiently help the above-mentioned equipment to improve the quality and output of lithium battery production and reduce consumption.

At present, industrial automation equipment, including servo systems, control systems, robots, etc., can make the production and manufacturing process of lithium batteries more efficient and refined, and have the characteristics of visibility and controllability. Widely used by big head battery enterprises.

The data shows that the scale of my country's servo market has been increasing in recent years. In 2021, the scale of the domestic servo market will reach 20 billion yuan. The agency predicts that the scale of China's servo market will be close to 30 billion yuan by 2025, with huge market potential.

According to the "2022-2027 China Industrial Automation Industry Market In-Depth Research and Investment Strategy Forecast Report" of China Research Institute Puhua Research Institute:

The servo system is a motion control component composed of a servo driver and a servo motor. It is an automatic control system that can dynamically track the change of the target position and is composed of the object's displacement, angle, and speed. It can achieve accurate, fast, and stable Position control, speed control and torque control are mainly used in the field of industrial automation control that requires high positioning accuracy and operating speed. Servo system can be divided into general servo system and special servo system.

The general servo system market is growing rapidly, and the demand for new industries such as industrial robots and photovoltaic equipment is growing rapidly. In 2021, my country's general servo system market size will reach 23.33 billion yuan, a year-on-year increase of 41.9%; while the market size in 2017 is only 14.12 billion yuan, with a compound growth rate of 13.4% in the past five years. From the perspective of downstream demand distribution, electronic manufacturing equipment is still the field with the highest proportion of general servo system demand, accounting for 18% in 2021. However, the demand for servo systems in high-growth industries such as battery manufacturing equipment, industrial robots, and photovoltaic equipment is growing rapidly, and the proportion is also increasing rapidly.

The market share of domestic brands of general servo systems is the highest, while the market share of foreign brands continues to decline. From the perspective of competition pattern, with the joint efforts of domestic enterprises such as Inovance Technology, Hechuan Technology, Xinjie Electric and Estun, the localization rate of my country's general servo system has increased from 27.6% in 2017 to 43.3% in 2021. %, while the market share of Japanese and Korean brands will drop from 52.7% in 2017 to 37.8% in 2021, and the market share of European and American brands will also drop from 19.7% to 18.9%. As for each enterprise, the domestic brand Inovance Technology currently has the highest market share. Followed by Yaskawa Electric (10.5%), Panasonic (9.6%), Mitsubishi Electric (8.8%), Siemens (8.1%) and other four foreign-funded enterprises.

The increase in the penetration rate of domestic CNC machine tools

The output of metal cutting machine tools and forming machine tools in my country has declined. Since February 2021, under the influence of a high base, the growth rate of the output of metal cutting machine tools and forming machine tools in my country has begun to tend to decline. By 2022, due to the successive outbreaks of domestic epidemics starting in April and the superimposed high base, the output of metal cutting machine tools and forming machine tools in my country will begin to grow negatively. From January to November 2022, the cumulative output of metal cutting machine tools in my country was 520,000 units, a year-on-year decrease of 12.5%, and the cumulative output of metal forming machine tools was 168,000 units, a year-on-year decrease of 15.2%.

The change in orders for metal cutting machine tools in Japan is basically consistent with the output of metal cutting machine tools in my country. In addition, since Japan is one of the important importers of machine tools in my country, the change in its order value of metal cutting machine tools is basically consistent with the output of metal cutting machine tools in my country. Therefore, affected by the epidemic situation in my country and Japan, in October 2022, the order value of metal cutting machine tool machinery in Japan was 100.34 billion yen, a year-on-year decrease of 14.0%. It was the first negative growth since December 2020. This is also consistent with the continuous decline in the growth rate of my country's metal cutting machine tool output.

The inflection point of the long cycle of machine tools in my country may have arrived, and future replacement is expected to become the driving force of core demand. From a long-term perspective, the output of metal cutting machine tools in my country has continued to decline for 8 consecutive years since it reached a historical peak of 886,800 units in 2011. In 2019, the output of metal cutting machine tools in my country was 421,000 units, a year-on-year decrease of 18.8%, only about half of the peak in 2011. The same is true for metal forming machine tools, whose production fell from 346,500 units in 2014 to 202,000 units in 2020.

However, generally speaking, the service life of machine tools is around 10 years. Machine tools that have been used for more than 10 years can continue to be used through maintenance and replacement of parts, but their machining accuracy will be reduced. Therefore, driven by the demand for replacement, the output of my country's metal cutting machine tools in 2020 and 2021 began to gradually pick up, and the output of forming machine tools in 2021 also returned to growth.

The numerical control rate of machine tools in my country continues to increase, but there is still a lot of room for improvement. On the other hand, because CNC machine tools better solve precision, complex, small-batch and multi-variety processing problems, they have higher processing accuracy and processing efficiency, which is the main direction of machine tool upgrades. At present, developed countries such as Europe, America, Japan and South Korea have a numerical control ratio of machine tools above 80%. Although the numerical control rate of machine tools in my country has continued to increase in recent years, the numerical control rate of metal cutting machine tools has increased from 31.1% in 2010 to about 44.9% in 2021, and the numerical control rate of metal forming machine tools has also increased to 11.4%. However, compared with developed countries such as Europe and the United States, there is still a lot of room for improvement in the CNC rate of machine tools in my country. Therefore, the replacement of ordinary machine tools with CNC machine tools in the future is also an important factor supporting the continuous growth of my country's machine tool output.