(4) Semiconductor, lithium and other downstream industries have increased, and the industrial automation industry has strong growth momentum

The downstream demand of industrial automation industry is diversified and the market is dispersed. Industrial automation involves all aspects of manufacturing, and the proportion of a single industry is not high. According to China’s Q1 data in 2023:

(1) The OEM market mainly downstream machine tools, semiconductors, batteries, textiles accounted for 19%, 10%, 8%, 6%;

(2) The main downstream chemical, municipal and public facilities, petrochemical and electric power in the project-type market accounted for 25%, 19%, 10% and 9% respectively.

350022M-146031-01 In the main downstream industries of industrial automation, the semiconductor and lithium battery industries are growing at a rapid rate, and the machine tool and industrial robot industries are also maintaining steady growth, bringing strong growth momentum to industrial automation and driving the continuous expansion of the industrial automation industry.

(1) The market size of CNC machine tools has grown steadily, promoting the development of industrial automation. CNC machine tools are an important downstream market for industrial automation, and the two are closely linked. In 2023, China’s CNC machine tool market size reached about 409 billion yuan, and the compound annual growth rate of the past five years reached 5.75%. In the future, with the development of CNC machine tools to digitalization, intelligence and networking, as well as the requirements for accuracy and speed, the industrial automation products required for machine tools will continue to expand and upgrade, and the market space will be broader.

(2) The rapid growth of the semiconductor equipment market has driven the expansion of the industrial automation industry. Semiconductors belong to the field of micro-precision machining, which requires automatic control systems to ensure production quality, and there is a wide demand for automated products. According to the data of the China Investment Industry Research Institute, the global semiconductor equipment sales in the first three quarters of 2023 were 78.19 billion US dollars; It is expected that the rapid growth of semiconductor devices in the future will help expand the market size of industrial automation products.

(3) Industrial robots show a growing trend, and the demand for industrial automation equipment will increase accordingly. Industrial robots and industrial automation products are inseparable and 350022M-146031-01 are one of the core links of intelligent manufacturing. In recent years, the sales of industrial robots have maintained a rapid growth trend, according to the International Federation of Robotics (IFR) data, the global sales of industrial robots in 2022 reached 553,052 units, of which 290,258 units were sold in China. During 2017-2022, the compound annual growth rate of global industrial robot sales was about 7%, and China was 13%. Above the global level. With the development of manufacturing and intelligent transformation, as well as the rising cost of labor, the future industrial robot market size is expected to maintain growth, will directly drive the demand for industrial automation equipment to increase.

(4) The high prosperity of lithium battery equipment has promoted the growth of the industrial automation industry. The application of industrial automation products can help lithium battery equipment realize the automation and intelligence of the production process, improve production efficiency and the stability of the manufacturing process. According to EVTank data, the global lithium-ion battery equipment market size reached 186.87 billion yuan in 2023, an increase of 24.2%, of which the Chinese market size reached 137.05 billion yuan. It is expected that in the future, with the increase in the installed capacity of power batteries, the demand for lithium battery equipment will continue to rise, which is expected to boost the market size of the industrial automation industry.