Domestic substitution shows signs of accelerating

And an echelon effect is forming

MMS6823R 9100-00001-06 Before 2022, foreign-funded enterprises will benefit from their technological advantages, brand influence and global operating experience, and occupy a more comfortable position in the Chinese automation market. However, in recent years, domestic enterprises have gradually risen and begun to form direct competition with foreign enterprises in some market segments.

1) The domestic automation manufacturers led by Huichuan and Zhongcong have formed the first echelon and made rapid development and great progress in the past five years

Taking domestic Huichuan as an example, general automation as its main business, the main products are PLC, servo, frequency conversion, including low voltage, high voltage frequency conversion. In the past five years, the development speed of Huichuan has increased rapidly, among which PLC, servo, frequency conversion has developed relatively fast in the past two years, especially frequency conversion and servo, and its market share has increased significantly.

MMS6823R 9100-00001-06

In the field of general servo, in 2021, Huichuan overtook foreign investment at a super high development rate, and maintained the first market share in China for three consecutive years, and it is still continuing to expand; In 2023, Huichuan still sits firmly in the first position of general servo, the annual growth rate is as high as 20.9%, and the market share increases by 5.8%, while most European and American manufacturers show negative growth in 2023.

MMS6823R 9100-00001-06 In addition to servo, Huichuan low-voltage inverter products in the Chinese market share of about 17%, ranking second; Medium and high voltage frequency converters accounted for 12%, ranking first. Small PLC products in the Chinese market share of about 15%, ranking second.

Zhejiang Central Control is mainly in the process automation of DCS (distributed control system) and SIS (safety instrument system) two products grow faster. In 2023, Zhejiang Control DCS products in the Chinese market share of 35%, ranked first, SIS product market share of 26%, ranked second, in the first domestic manufacturers.

In addition to the absolute advantage in the DCS business sector, in the development of SIS products, in 2023, Zhejiang Zhongkong has made a strong breakthrough in various industries, and its market share has further increased to 28%. It continues to maintain and expand its market share in traditional advantaged industries such as petrochemical and chemical industries, and its performance has steadily improved. Remarkable results have been achieved in the market expansion of metallurgy, food and medicine, new energy and other industries.