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  • Analysis on the Current Situation, Competition Pattern and Development Trend of China's Industrial Automation Equipment Industry Market in 2018

    2019-08-22 717


    1, concept

    Industrial automation refers to the general term for information processing and process control such as measurement, manipulation, etc., in accordance with the intended objectives, without the need for manual intervention by the machine or the production process. By introducing automation technology, enterprises can achieve the goals of improving production efficiency, ensuring product quality, saving labor costs and ensuring safety.

    Industrial automation equipment mainly refers to automated processing, testing, control systems and related equipment used in mobile terminals, new energy, automotive, hard disk, medical health and logistics. The manufacturing of automated equipment has a high technical content, usually combining mechanical systems, electrical control systems, sensor systems, information management systems and network systems. The automation equipment can effectively improve the efficiency and reliability of production and reduce the dependence of the production process on labor, so it is widely used in various fields of the national economy.

    2. Industry status

    (1) Overview of the development of automation equipment manufacturing

    In the past half century, with the continuous increase of labor costs and the continuous improvement of automation technology, the automation equipment manufacturing industry has developed rapidly, promoting industrial upgrading and technological progress in other industries. Its development level is the embodiment of the country's comprehensive strength. As a strategic industry that provides technical equipment for various industries in the national economy, the automation equipment manufacturing industry has the characteristics of high correlation, good growth, and great driving. With the increase of labor costs, the improvement of production efficiency and product quality requirements, and the transformation of production methods from extensive to refined, the demand for industrial upgrading will drive the rapid growth of the automation equipment market.

    With the rapid advancement of science and technology, many countries have further recognized the importance of the automation equipment manufacturing industry, and have successively proposed the development strategy of the manufacturing industry, such as the US National Strategic Plan for Advanced Manufacturing and the German Industry 4.0 Program. And Japan's "Manufacturing White Paper" and so on. China has also upgraded smart manufacturing to the national strategic level. For example, "Made in China 2025" will promote "integration of informatization and industrialization" as one of its strategic tasks and priorities, and propose "to promote the intelligentization of manufacturing processes. Pilot construction of smart factories in key areas." /Digital workshop, speed up the application of human-machine intelligent interaction, industrial robot, intelligent logistics management, additive manufacturing and other technologies and equipment in the production process"; "The Outline of the 13th Five-Year Plan for China's National Economic and Social Development" Build a strong country strategy, implement smart manufacturing projects, and accelerate the development of key manufacturing technologies for smart manufacturing.

    Although internationally renowned automation manufacturers such as Siemens (Siemens Ltd.) and ABB (Asea Brown Boveri Ltd) have a high share in the automation equipment market in China with advanced technology, rich project experience and strong capital strength, With the accumulation of experience and the support of industrial policies, the development depth and breadth of China's automation equipment manufacturing industry has gradually increased. The intelligent equipment industry system represented by automated complete production lines, intelligent control systems, industrial robots and new sensors has been formed. A breakthrough in the major intelligent equipment for intellectual property. At present, domestic enterprises in China have been able to produce most of the low-end and mid-range automation equipment, basically meeting the needs of low-end and medium-end automation equipment in the fields of electronics, automobiles, engineering machinery, logistics and warehousing. At the same time, a large number of large-scale automation equipment manufacturers with strong competitiveness have emerged in China. They have independent intellectual property rights and automated equipment manufacturing capabilities, and are able to independently research and develop high-end products of automation equipment. The product performance and technical level are similar to those of similar foreign products. The core technology of the product has reached the international advanced level.

    Since the reform and opening up, China has gradually developed into a manufacturing power with the advantage of cheap labor. With the change of population structure, the scale of labor and its proportion to the total population have declined to varying degrees. Since 2010, the growth of the 15-64-year-old labor force in China has slowed down. From 2011, the proportion of the 15-64-year-old labor force in China has continued to decline. The decline in the number and proportion of China's labor force may become a long-term trend, and the gradual disappearance of the demographic dividend will lead to an increase in labor costs.

    China's population aged 15-64 in 2007-2017

    Compared with labor, automated production lines can help companies save labor costs, shorten production cycles, improve production processes and improve product yields, thereby improving the competitiveness of the enterprise market. Therefore, accelerating the cultivation and development of automated equipment manufacturing is not only an urgent need to build new competitive advantages in international competition, but also to grasp the initiative of development. It is also an inherent requirement for transforming the mode of economic development and promoting the upgrading of industrial structure.

    2. Status of industry market scale

    After years of development, the scale of China's automation industry has expanded rapidly. According to the data, from 2004 to 2017, the compound growth rate of China's automation industry market reached 7.43%.

    China's automation market scale in 2004-2017

    Under the combined effect of the reduction of the number of working-age labor, the continuous increase of labor costs, the continuous improvement of the technical level of automation equipment, and the support of national industrial upgrading policies, the market demand of China's automation industry has grown rapidly. According to Chinese data, the demand for automated production lines in China reached 25,897 in 2017, while the domestic manufacturers produced only 12,698. The larger market share is occupied by foreign manufacturers, and domestic manufacturers are still unable to meet the strong market demand. With the further improvement of the core technology level of China's automation equipment industry in the future, the domestic automation equipment industry will still have a huge room for growth.

    China's automated production line supply and demand quantity

    3. Market size of downstream industry

    At present, automation equipment is mainly used in mobile terminals, new energy, automobiles, hard drives, medical health and logistics, among which the mobile terminal industry is the most prominent.

    (1) Mobile terminal industry

    A mobile terminal is a computer device that can be used on the move. Mobile terminals in a broad sense include mobile phones, notebooks, tablet computers, POS machines, and on-board computers. In recent years, with the rapid development of mobile intelligent terminal hardware technology and the expansion of application fields, many new product forms have emerged in mobile intelligent terminals. Among them, emerging mobile intelligent terminals represented by wearable devices, smart homes and in-vehicle intelligent terminal products are widely optimistic, and the market prospect is very broad.

    Mobile terminal products have a high degree of personalization and many types of components. Taking a mobile phone as an example, its components include a screen, a motherboard, a battery, a casing, a camera, a structural member, and the like.

    The mobile terminal industry chain system is huge. The product production process generally includes R&D design, parts manufacturing and assembly, and assembly testing. The product design is generally completed by the brand. The parts are manufactured by professional manufacturers. The foundry is finished.

    The mobile terminal industry has the characteristics of large market scale, fast update speed and high customization requirements. At present, China has formed a complete mobile terminal industry chain. After years of development, it has formed industrial clusters such as the Yangtze River Delta and the Pearl River Delta.

    1 mobile phone industry

    In recent years, smart phones have become more and more popular, and electronic products represented by smart phones have maintained rapid growth, which in turn has promoted the rapid development of the global mobile terminal market. According to statistics, in 2013, global smartphone shipments exceeded 1 billion units, and in 2017 it reached 1.472 billion units. Despite the gradual decline in growth rates in recent years, shipments have continued to grow, and the growth rates for each year from 2011 to 2015 were greater than 10%. In general, the growth rate of the smart phone industry will slow down and will gradually enter the era of stock competition.

    Global smartphone shipments in 2011-2017

    As a mobile terminal manufacturing country, China is a key area for the global mobile terminal manufacturing industry. Many electronics manufacturers have established manufacturing bases in China. China has become a major producer of smart terminal products worldwide. Taking smartphones as an example, according to statistics, the output of smartphones in China in 2017 was 1.429 billion.

    Affected by rising labor costs, handset manufacturers are under pressure to automate the transformation of production lines. In addition, as consumers' demands for smart phones, thinner and lighter, and higher speeds are increasing, drivers of smart phone brands are constantly upgrading their products, which in turn drives the renewal of production lines. These development trends will drive the demand for automated production equipment.

    2 tablet industry

    In 2010, Apple released the iPad, opening the era of explosive growth in the tablet market. Tablet PCs have the characteristics of cross-border, and they are favored by consumers, such as consumer electronics, traditional PC, communication, and software products. After Apple released the iPad, Lenovo, Samsung, Toshiba and other brand manufacturers have joined the tablet market, which quickly set off a global tablet PC boom. According to statistics, from 2011 to 2014, global tablet shipments grew at a compound annual growth rate of 47.28%. In 2014, global tablet shipments reached 230 million units. However, since 2015, due to the growth of sales of large-screen smart phones and the slowdown in the consumer replacement cycle, global tablet shipments have declined for two consecutive years, and the market has gradually entered a mature period.

    2011-2017 global counter-revolution computer shipments

    (2) New energy industry

    The new energy automobile industry is one of the seven strategic emerging industries in China. With the support of policies, China's new energy vehicles have entered a period of rapid development and have become the world's major new energy vehicle market.

    Production and sales of new energy vehicles in China in the past six years

    According to the forecast analysis, by 2020, China's new energy vehicle market will reach 1.45 million units, of which private new energy vehicles (pure electricity + plug-in, mainly for passenger cars) will reach 800,000 vehicles, buses, special vehicles The total number of official vehicles will reach 650,000.

    In the context of strong growth in the new energy vehicle market, shipments of power batteries matching the entire vehicle have increased significantly. According to statistics, China's power lithium battery shipments increased from 0.35Gwh in 2011 to 39.20Gwh in 2017, with an average annual compound growth rate of 119.55%.

    China's total power battery shipments from 2011 to 2017

    Data source: public data organization

    The rapid development of the new energy vehicle market will provide a good development opportunity for China's new energy vehicle industry automation equipment manufacturers.

    (3) Automotive industry

    Since the 19th century, the world's automobile industry has flourished, manufacturing technology has continued to improve, car quality has steadily improved, and production and sales have continued to rise. It has now become one of the world's largest industries. At the same time, the automobile industry has a long industrial chain, high correlation, strong comprehensiveness, and high added value. The impact on the economic structure is profound and extensive, and it is the pillar industry of the national economy.

    After the outbreak of the financial crisis in 2008, the world automobile industry pattern has undergone profound changes. The focus of the automobile market has shifted from Europe and the United States to Asia, and emerging markets represented by China have risen rapidly. In 2009, China's automobile production and sales volume was 13,379,100 units and 13,364,800 units respectively. It surpassed the United States to become the world's largest automobile market. It has been ranked first for nine consecutive years.

    As a pillar industry of China, the automobile industry has been highly valued by the state because of its high industrial relevance and its great driving role in the national economy. Relevant government departments have issued a series of industrial policies and guidance. With the stimulation of industrial policies and the improvement of public consumption, the automobile industry has developed rapidly. According to China's statistics, China's automobile sales increased from 19,306,400 in 2012 to 28,887,900 in 2017, with a compound growth rate of 8.39% and strong growth.

    China's auto sales in the past six years

    4. Industry competition

    (1) Industry competition pattern

    After decades of development in China's automation industry, a number of outstanding enterprises with strong independent innovation capabilities have emerged. With product innovation, response speed and personalized service, they are gradually forming stronger market competitiveness. However, due to the late start, there is still a gap in the market share of domestic enterprises compared with foreign manufacturers. In terms of market size, foreign-funded enterprises currently occupy about 70% of the market share of the automation equipment market.

    Compared with domestic enterprises, foreign companies have great advantages in technology, brand and capital, but they have certain disadvantages in terms of cost, service and response speed. Therefore, foreign companies have accelerated the localization process and established a sole proprietorship or joint venture. The gap between cost, response speed, service and other aspects of domestic enterprises has been narrowed.

    In the field of non-standard automation equipment, R&D design needs to consider the customer's production line, production process, production environment and other factors, and select and combine parts and modules according to customer's customized requirements. Therefore, the manufacturer's supporting design capability and project execution experience. The requirements for customer service capabilities are high. Foreign companies are constrained by the above-mentioned capabilities, and their proportion in non-standard areas in China is relatively low. Most non-standard automation equipment manufacturers in China choose to focus on one or a few areas and occupy a certain share in non-standard areas in China.

    Major companies in the industry
    Automation Tooling Systems Inc (hereinafter referred to as "ATS") Founded in 1978, ATS serves customers in the life sciences, computer/electronics, energy, transportation and consumer products industries to meet their needs for complex automation systems. ATS has manufacturing facilities in Canada, the United States, Europe, Southeast Asia and China.
    Bozhong Precision Technology Co., Ltd. (hereinafter referred to as "Bozhong Seiko") Founded in 2001, Bozhong Seiko is a system integrator integrating R&D, production, sales and service. It has established branches in the United States, Shanghai, Shenzhen, Beijing, Chongqing and other countries and regions. Bozhong Seiko is committed to providing customers with quality products and comprehensive services in terms of solution design, precision machining, assembly and commissioning, on-site implementation and after-sales support. Bozhong Seiko products mainly include tooling clamps, single-machine automation equipment, automated assembly lines, and the overall transformation of smart factories.
    Dalian Zhiyun Automation Equipment Co., Ltd. (hereinafter referred to as “Zhiyun Shares”) Zhiyun was established in 1999 and listed on the Shenzhen Stock Exchange in July 2010. Zhiyun's main business is the R&D, design, production and sales of complete sets of automation equipment. It has formed three business segments: 3C intelligent manufacturing equipment, automobile intelligent manufacturing equipment and new energy intelligent manufacturing equipment.
    Wuxi Pilot Intelligent Equipment Co., Ltd. (hereinafter referred to as "pilot intelligence") Pioneer Intelligence was established in 2002 and was listed on the Shenzhen Stock Exchange in May 2015. Pioneer Smart's main business is the development, design, production and sales of automated complete sets of equipment and the provision of automation integrated solutions. The main products are lithium battery equipment, photovoltaic automation production equipment and film capacitor equipment.
    Zhuhai Yuntaili Automation Equipment Co., Ltd. (hereinafter referred to as “Yunteli”) Yun Taili was established in 2004 and currently has production bases in Zhuhai, Suzhou and Shenzhen, and has offices in Chengdu, Japan and the United States. Yuntai is mainly engaged in the research and development, production and sales of precision test equipment and industrial automation equipment. The main products include test equipment/automated test equipment and industrial automation equipment. Yuntai was acquired by Changyuan Group (stock code: 600525) in 2015 and is now a wholly-owned subsidiary of Changyuan Group.
    Suzhou Saiteng Precision Electronics Co., Ltd. (hereinafter referred to as “Sai Teng Shares”) The company was established in 2007 and listed on the Shanghai Stock Exchange in December 2017. The main business of Saiteng Co., Ltd. is the R&D, design, production, sales and technical services of automated production equipment, providing system solutions for customers to achieve intelligent production. The main products include automated assembly equipment, automatic testing equipment and fixture products. Source: Public information

    5. Industry development trend

    (1) Clustering

    With the increasingly fierce market competition, the correlation between upstream and downstream industries is increasing, and the distribution of automation equipment manufacturers is clustering. At present, it is mainly concentrated in the economically developed Yangtze River Delta region and the Pearl River Delta region. Clustering helps reduce operating costs, increase productivity, and jointly win regional competitive advantage. In addition, clustering is also an objective requirement to promote industrial upgrading and an effective guarantee for improving the regional economy.

    (2) Informatization

    The automation equipment manufacturing industry is moving towards comprehensive informationization. The process of automating the manufacturing process mainly through information control technology is the integration of hardware and software, and the integration of manufacturing technology and information technology into procurement, production and sales. The whole process of after-sales service has greatly improved the efficiency of production and service.

    (3) Branding

    Branding is an important means to enhance the competitiveness of enterprises and the key to industrial upgrading. Brand is the representative of product quality, and it is also the embodiment of comprehensive strength of the company, which has an important impact on product sales. At present, the high-end market of automation equipment is mainly dominated by large foreign-funded enterprises. As foreign-funded enterprises start early, they often have strong technical strength and excellent product performance, so the brand awareness is relatively high.

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