The Status of China's Automation Parts Industry And The Development of Downstream Industries

Automation equipment serves a wide range of industries, including new energy lithium batteries, 3C, automobiles, photovoltaics, industrial robots, military industry, medical care, semiconductors, lasers, food and logistics. Relying on the huge market space in the field of automation equipment segmentation, the market space and growth rate of the automation equipment parts industry have shown a good trend.

1. New energy lithium battery industry

In 2022, the company’s revenue from the downstream new energy lithium battery field will account for the largest proportion of the company’s revenue, accounting for 35%. According to the forecast of GGII, my country’s power lithium battery shipments will reach 1070GWh in 2025, the average annual compound growth rate will reach 33.47% from 2022 to 2025, and the energy storage lithium battery shipments will reach 300GWh. In 2025, the average annual compound growth rate will reach 49.38%. In the future, with the rapid growth of downstream power lithium battery and energy storage lithium battery shipments, the upstream automation equipment and automation parts industry will fully benefit and grow rapidly.

2. 3C industry

Smartphones are electronic products with relatively large sales in the 3C field. According to the data and forecasts of the International Data Corporation (IDC), global smartphone shipments will reach 1.281 billion units in 2020, 1.355 billion units in 2021, and decrease by 11.3% to 1.206 billion in 2022. It is expected that the smartphone market will gradually recover from 2024, and global smartphone shipments are expected to reach 1.371 billion units in 2027. In addition, market segments such as VR/AR in the 3C field are expected to grow rapidly, thereby driving an increase in investment in upstream automation equipment and automation components.

3. Automobile industry

In recent years, my country’s automobile industry has achieved remarkable results in terms of market size, new energy development, and brand promotion. China is gradually transforming from a large automobile production country to a powerful automobile industry country. According to the forecast of China Association of Automobile Manufacturers, my country’s automobile production will maintain steady growth from 2022 to 2025.

4. Photovoltaic industry

According to the forecast of China Photovoltaic Industry Association (CPIA), China’s newly installed photovoltaic capacity will continue to grow in the next few years. It is conservatively estimated that China’s newly installed photovoltaic capacity will reach 90GW in 2025, and the average annual compound growth rate from 2021 to 2025 will reach 13.16. %.

5. Industrial robots

According to the forecast of the Chinese Institute of Electronics, the scale of my country’s industrial robot market will maintain rapid growth in the next few years. It is estimated that the scale of my country’s industrial robot market will reach 58.9 billion yuan in 2023. The compound annual growth rate in 2021-2023 will reach 14.96%.

In addition to the above-mentioned downstream industries, industries such as military industry and medical equipment are also facing better development prospects. As my country’s national defense industry has entered the stage of compensatory development, the national defense construction has a large demand for weapons and equipment, coupled with the intensive introduction of related industrial policies by the state, the military industry has ushered in better development opportunities.

The field of medical devices is an important industrial field related to the national economy and the people’s livelihood. The domestic market, affected by comprehensive factors such as import substitution, policy support, aging population, improvement of residents’ living standards, and enhanced awareness of medical care, will release increasing market demand. Continued development in this downstream area brings more market opportunities.