I. Overview of the industrial chain

Servo system is a feedback control system used to accurately follow or reproduce a process, which is composed of a controller, a power drive device, a feedback device and a motor. Its main task is to amplify, transform and regulate the power according to the requirements of the control command, so that the torque, speed and position control of the output of the drive device are flexible and convenient. The upstream of the servo system industry is all kinds of parts, including magnetic materials, converters, encoders, hardware, sensors and other raw materials; Midstream is the manufacturing of servo systems; Downstream applications of the main servo system, including machine tools, industrial robots, textile machinery, electronic manufacturing equipment, medical equipment, printing machinery and other special equipment are widely used servo system.

Servo system industry chain situation

Second, upstream industry

The servo system is mainly composed of servo motors and servo drivers, and the main upstream raw materials are magnetic materials, converters, encoders, hardware, sensors and other raw materials. Among them, magnetic materials are important raw materials of servo system, in 2021 China’s rare earth permanent magnet material production of about 213,300 tons, an increase of 8.7%, and China’s rare earth reserves and production are the world’s first, is expected to the future supply of rare earth permanent magnet materials is relatively loose, conducive to the steady development of the servo system industry.

The converter can convert analog signal and digital signal into each other, and is an important electronic component in the production of servo system. In 2020, the global signal chain analog chip market is about 9.92 billion US dollars, and it is expected to reach 11.82 billion US dollars in 2023. As an important segment of signal chain analog chips, the development of the converter market is naturally quite robust, which can meet the needs of the future development of the servo system industry.

Third, the midstream industry

In recent years, the size of China’s servo market has been increasing, and the size of the domestic servo market has reached 16.44 billion yuan in 2020, and it is expected to maintain continuous positive growth in the future compared with 52.2 billion yuan in 2015, an increase of about 39%. And it is expected to maintain a stable growth trend in the future, and the size of China’s servo market will be close to 30 billion yuan in 2025.

From the perspective of the market share of China’s servo system suppliers, the market share of the five enterprises before 2020 is about 10%, and the industry concentration is not high, and the competition is more fierce. And the top three companies in the market share are Japanese brands, the market share of domestic brands is not high, still need to make efforts, in the future under the tide of domestic substitution, domestic servo system industry has great potential.

Related Report: “2022-2028 China Servo System Industry Market Operation Situation and Competitive Strategy Analysis Report” released by Zhiyan Consulting

Fourth, downstream industry

The downstream application of servo system products is extremely wide, covering machine tools, textile machinery, electronic manufacturing equipment, medical equipment, printing machinery and other industries. In 2021, China’s machine tool production increased significantly, and the output of metal cutting machine tools was 602,000 units, an increase of 29.2%. In the future, as China transitions to high-end manufacturing, the demand for machine tools will only be greater. As an important component required for machine tools, the demand for servo systems naturally increases.

Industrial robots are also an important downstream application market for servo systems. With the improvement of manufacturing automation requirements in various industries in China and the increasing labor costs, the application of industrial robots in various manufacturing industries is experiencing explosive growth. In 2021, the output of industrial robots in China reached 366,000 units, an increase of 54.4%, and the development of the industrial robot market greatly boosted the demand for servo systems.