ACC-24E2S Although the overall automation market in the first half of 2023 continued the previous downward trend and industry demand was depressed, the situation gradually improved in the second half of the year according to the data. According to the information released by Gewu Zhisheng, an industrial control industry research institute, China’s GDP is expected to grow by 5.2% year on year in 2023, the economic repair is slow, the consumer market is less than expected, and end users are in a wait-and-see state; Infrastructure investment continued to gain momentum, and the growth rate gradually slowed down.
• Modest recovery in economic growth: Real GDP growth is expected to reach 4.2% in 2024, up slightly from the compound growth rate of 4% in the previous two years.
• The endogenous momentum of consumption will continue: Similar to 2023, consumption growth in 2024 will be driven by income growth.
• Narrowing of the decline in real estate: It will continue to adjust in 2024, and it is forecast that real estate investment will decline to about 7% in 2024, narrowing from the decline in 2023, mainly due to the policy support for the renovation of urban villages and the construction of affordable housing.

Overall, the market has not improved significantly.

Industrial automation market size and forecast

Data source: Gewu Shengsheng collated according to public information

2023 Q3GDP growth of 4.9%; GDP is expected to grow ACC-24E2S  by about 5.2% in 2023. Q3 quarter growth and future economic growth less than expected, the overall market expectations lower; From the perspective of the downstream industry, the project-based market is still the main driving market for Q3, and the traditional market demand of the OEM market continues to be weak.

In the traditional OEM market, textile, packaging, printing and other industries have a low boom, only the food and beverage industry has a slight improvement, the new production line of the lithium battery industry has reduced, and the industry has a certain contraction; Lifting, construction, HVAC and other industries due to the downturn in the real estate market, there is a certain contraction.

ACC-24E2S

In terms of the EU market, the electricity, oil and gas, and municipal sewage treatment industries have developed well.

In Q411 of 2023, the added value of industrial enterprises above designated size increased by 6.6% year-on-year; From a month-on-month point of view, in November, the industrial added value above designated size increased by 0.87% over the previous ACC-24E2S month. From January to November, the value added of industrial enterprises above designated size increased by 4.3 percent year-on-year. Under the background of the low base of Q4 in 2022, Q4 in 2023 showed an improvement trend and the decline rate narrowed. For the full year, the industrial automation market declined by about 2%.

Data source: Gewu wins interviews and industry accumulation

The low-voltage inverter market is still the main driving market in Q3, and the traditional market demand in the OEM market is still weak; Domestic substitution continues, and the share of foreign brands continues to decline.

Servo consumption recovery less than expected, OEM end-user equipment and production line investment are wait-and-see attitude, market demand continues to decline; The traditional downstream industries are limited in export, weak domestic demand, and the market is declining rapidly, such as packaging, textile, printing, etc. In emerging markets, the background of rapid decline in policies and costs, the photovoltaic industry has shown rapid growth.

In terms of PLC, in 2023, the project-based market continued to exert strength, but the growth rate slowed down, and the medium and large PLC market increased slightly; The OEM market performance is poor, and the demand for small and medium-sized PLC products continues to shrink.