In the changing global economic landscape, the automation industry is facing unprecedented challenges and opportunities. On the one hand, the economic downward pressure, the demand for industrial upgrading and the restructuring of the global supply chain have brought uncertainty to the automation market. On the other hand, technological progress, domestic substitution trends and industrial geographic transfer have also opened up new development space for the automation industry. In such a complex and changing environment, insight into market trends and grasp the dynamics of the industry have become the key to success.

MMS3120/022-000 9100-03047-01 2023 has already passed, MIR Rui industry through the industry data on the overall automation market and future development trends have made a summary and forecast, the future automation market mainly has the following development trends:
1. The automation market is becoming mature, and the market is moving from rapid growth to stability.
2. Domestic substitution shows signs of acceleration and is forming a echelon effect.
3. Industrial transfer has been irreversible, and automation manufacturers are in danger.

The automation market is maturing

The market is moving from rapid growth to stability

Over the past two decades, China’s automation market has experienced rapid growth. From 2002 to 2022, the compound annual growth rate (CAGR) of the market exceeds 15%. However, in the first three years of the 14th Five-Year Plan (2021-2023), the compound annual growth rate of the market suddenly turned negative, falling by 0.22%. This change indicates that 2023 will become an important turning point in the development of China’s automation market, and the overall market growth rate will show an “L” curve development after 2023. After this decline, it is expected that the growth rate will slow down after entering the end of the “14th Five-Year Plan” in 2024-2025.

MMS3120/022-000 9100-03047-01

From 2024 to 2025, the growth rate of the automation market will slow down, and some OEM markets may pick up

1) Faced with such a market environment, we expect the growth of the automation market to slow significantly between 2024 and 2025, with a conservative forecast that the growth rate may only be between 0% and 5%.

MMS3120/022-000 9100-03047-01 2) However, even amid such challenges, there are still new business opportunities in the automation market.

The fields of new energy, semiconductors and 3C electronics have become new growth points in the automation market due to their technological innovation and continuous growth of market demand. In addition, The State Council has just issued a policy to encourage the renewal of domestic equipment, the meeting pointed out that to promote all kinds of production equipment, service equipment update and technological transformation, encourage cars, home appliances and other traditional consumer goods to replace the old for new, and promote durable consumer goods to replace the old for new. The traditional OEM market is likely to get a boost in 2024, including machine tools, food and beverage equipment and other industries.