China 2024 Automation Industrial Market Trends and Market Outlook

Mr. Jiang Junfeng is a partner of Xihua Technology Consulting Service Center in Nanshan District, Shenzhen, and the former head of strategic product management for factory automation at Siemens. Mr. Jiang has successively held senior technical and management positions in the core R&D and product management departments of internationally renowned automation companies such as Honeywell and Siemens. He has experience as a senior executive in industrial Internet start-up companies and is familiar with the industrial automation and industrial Internet markets in the Chinese market. and industry trends, and has been deeply involved in intelligent manufacturing, industrial automation, and the Internet of Things industries for nearly 20 years. The following analysis only represents the personal opinions of experts. Dr. Solenoid does not comment or endorse, and is not responsible for the authenticity, relevance or completeness of the opinions involved in the article.

Industrial automation has a wide coverage, and the application industries of its products such as PLC, DCS, frequency conversion, and servo are constantly expanding, and its market size is huge. Chinese and foreign players participating in the Chinese market gather together, such as well-known international companies Siemens, Mitsubishi, Yaskawa, etc., as well as domestic Huichuan, Lesai, Hechuan, etc.  In the current economic environment, how will the industry landscape of industrial automation change? Mr. Jiang Junfeng has analyzed the 2024 market performance and future opportunities of China's at industrial automation market, as well as the future development trend.

Mr. Jiang: In 2022, the market performance of China's industrial automation is not very good and was basically flat.  Two quarters of 2023 have passed, and there are no obvious signs of recovery. The market pressure is still very high. Personally, I am conservative and cautious about the second half of the year. The market will not see a major reversal and will basically be in a slight decline. First, the PMI index cannot go up. In addition, there are relatively many stocks in the entire industrial automation market. Distributors are not very willing to stock up on inventory layout, and the market demand is relatively cautious. However, there are differences within the industry - project-based industries (such as chemical industry, mining, electric power, municipal administration, etc.) generally prefer ) is supported by national policies and develops rapidly. From a trend perspective, product delivery cycles have not changed much. The supply period of mainstream products is not affected, but there may be some non-mainstream niche products whose supply period will be lengthened. In terms of pricing strategy, domestic companies are relatively aggressive in pricing and prices will fall. International companies like Siemens have price dominance in PLC and will control channels to maintain price stability. The stockpiles in the hands of distributors are at a normal level and there will be no large-scale sales.