2. Midstream market

In recent years, with the development of China’s economy, the improvement of residents’ income level and the transformation of demographic structure, the demographic dividend has gradually weakened, and the rise of labor costs has boosted the improvement of the automation level of China’s manufacturing industry. At the same time, the modern manufacturing industry has higher and higher requirements for product consistency and precision, the process of replacing manual machines has accelerated, and the demand for industrial control in the manufacturing industry has continued to increase. Therefore, the increase in automation demand will boost the steady growth of the industrial control market, and lay a good market foundation for the development of the industrial power supply industry.

Since 2016, the scale of China’s industrial automation control market has shown a fluctuating upward trend. Data show that in 2020, China’s market size has increased from 142.8 billion yuan in 2016 to 206.3 billion yuan, with a compound annual growth rate of 9.63%; It is expected that by 2022, the scale of China’s industrial automation control market will reach 236 billion yuan, maintaining stable growth.

It is expected that with the progress of semiconductor and power electronics technology, control layer products, drive layer products and executive layer products will develop in the direction of miniaturization, the integration of the entire automation control system will be higher and higher, “control + drive” integrated products, “drive + execution” integrated products will become more and more popular, and even toward the direction of “control + drive + execution” integrated products. The automated control system will become a node of intelligent terminal.

Third, downstream market

1. Elevator

The elevator industry refers to the manufacture of various elevators, escalators and automatic walkways, lifts and their specialized accessories. After years of development, it has become an indispensable and important construction equipment for the development of modern society, which has played an irreplaceable supporting role in improving people’s quality of life, improving the quality of life, and realizing the national policy of “energy saving and land saving” in China’s construction industry. At the same time, the elevator is closely related to the safety and quality of life of the people because of its function, and has been listed as special equipment by the state for many years, and its development has also been concerned by the government and the people.

In recent years, driven by the continuous development of urbanization, infrastructure investment and the installation of elevators in old buildings, the output of the elevator industry has gradually increased. According to the China Elevator Association, China’s elevator production will reach 1.05 million units in 2020, an increase of 7.1%. It is estimated that China’s elevator production will exceed 1.2 million units in 2021.

From 2001 to 2019, the number of new installations of elevators and escalators in China showed a fluctuating upward trend, and the number of new installations of elevators and escalators in 2019 was 600,000. According to preliminary estimates, the number of new elevators and escalators installed in China in 2020 will be about 650,000 units.

2. Cars

The automobile manufacturing industry is one of the industries with the highest degree of automation application at present, and it is also one of the most mature fields of intelligent manufacturing equipment application. In recent years, the state has continuously introduced laws, regulations and policies to support the healthy and benign development of the high-end equipment manufacturing industry, and the intelligent manufacturing equipment industry, as a key area of the high-end equipment manufacturing industry, has been encouraged and supported by national policies. With the vigorous development of intelligent manufacturing, the market scale of automotive intelligent manufacturing equipment will be further expanded.

In recent years, the rapid development of China’s automobile industry, production and sales of rapid growth, has become the world’s largest automobile production and sales country. According to the data, in the whole year of 2021, China’s automobile production and sales were 26.082 million and 26.275 million, respectively, an increase of 3.4% and 3.8%. From January to March 2022, China’s automobile production and sales were 6.484 million and 6.509 million, respectively, an increase of 2.0% and 0.2% year-on-year.

3. Electricity

Power automation is based on advanced network communication, automation control, microcomputer relay protection technology and reliable products, to provide users with modern equipment monitoring control management and remote online monitoring, to ensure the stable and reliable supply of the power system and optimized power load management system structure, is an indispensable part of the modern power industry.

In recent years, the demand for downstream applications of power automation has shown steady growth, and the growth of downstream application demand has continuously boosted the rapid development of the power automation industry. In 2020, due to the factors of the epidemic, the output of power automation equipment and related technologies of various enterprises has suffered a significant reduction, and the growth rate of the market size of the industry has been greatly affected. In 2021, with the improvement of the epidemic, the resumption of work and production of all walks of life, China’s power automation industry has also entered a rapid development trend. Preliminary statistics in 2021, the market size of China’s power automation industry exceeded 110 billion yuan.