Industrial automation downstream application scenarios are abundant
Industrial automation refers to the application of automation technology in the manufacturing process of machinery industry to achieve automatic processing and continuous production, to improve the efficiency and quality of machine production, and to release productivity means of operation to replace the manual manipulation of machines and machine systems for processing and production, under the conditions of industrial production automation, people only indirectly take care of and supervise the production of machines. In terms of downstream applications, they can be divided into OEM and project-based markets; 1) OEM market: Factory Automation (FA) for discrete industries. It is mainly a market for standardized, mass-produced machinery, where the customers are equipment manufacturers, and some small, customized, non-standard large equipment is not included in this category. The main industries are textile machinery, packaging machinery, lifting machinery, food machinery, plastic machinery, rubber machinery, machine tools, elevators, printing machines, HVAC, electronic equipment manufacturing, wind power, solar energy, paper making machinery, transportation tools, construction machinery, mining machinery, power supply equipment, etc. (2) Project-based market (EU): process automation (PA). Mainly to control the production process of process industries to achieve continuous production and processing, including metallurgy, chemical, electric power, automotive, petrochemical and petroleum, municipalities, building materials, utilities, paper, mining, etc.
Demand linked to manufacturing, 100 billion market continues to expand
The industrial control industry is closely related to the manufacturing industry because of the demand, and is more related to the macroeconomic performance. The industrial control industry is an upstream industry in the manufacturing sector, and revenue growth is driven by investment activity in the manufacturing sector, which has strong pro-cyclical characteristics. From an overall market perspective, the industrial automation market is strongly correlated with the value added of manufacturers' equipment, with consistent peaks and valleys and a strong link to industrial investment activity and economic fluctuations. For example, from 2008 to 2011, after the financial crisis, the domestic GDP growth rate began to recover and the overall industrial control market maintained a high growth rate; while in 2012, economic growth began to slow down, the supply-side surplus, equipment investment growth was at a lower range; in 2016, the supply-side reform cleared excess capacity and the equipment growth rate recovered.
From the point of view of the downstream market, the project market accounts for a relatively high. Referring to the data of Ruiyuan Industry, the automation market in China in 2021 is 292.3 billion yuan, of which the project automation market is 172.1 billion yuan, accounting for 59%, and the OEM automation market is 120.2 billion yuan, accounting for 41%. From the perspective of specific downstream markets, the OEM market will grow faster in 2021, at 28%, mainly in emerging industries such as industrial robots, batteries and semiconductors; the project-based market will grow at 10% in 2021, with metallurgical and chemical industries maintaining rapid growth and automotive and municipal industries declining.
From the perspective of specific products, the market scale of PLC, DCS, servo system, low-voltage inverter and CNC in the control layer, drive layer and execution layer is large, among which the market scale of PLC is 15.8 billion in 2011, with a year-on-year growth rate of 21%; the market scale of industrial control machine is 12 billion, with a year-on-year growth rate of 14%; the market scale of low-voltage inverter is 28.3 billion, with a year-on-year growth rate of 20%; the servo system is 23.3 billion, with a year-on-year growth rate of 35%; the CNC market is 14.4 billion, with a year-on-year growth rate of 33%.