2022VS2023 China servo market sub-supplier growth rate performance

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.

0010-32695 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.

2) The second echelon of domestic brands has gradually formed: Eston, Xinjie, Leisai, Hechuan, etc

0010-32695 With the in-depth development of the automation industry, the second echelon of domestic brands has gradually formed, and brands such as Eston, Xinjie Electric, Leisai Intelligence, and Hechuan Technology have begun to occupy a place in specific market segments through continuous technological innovation and market expansion.

Hechuan Technology and Xinjie Electric, as the second echelon of domestic automation manufacturers, have been focusing on the research and development and production of general automation business, both in market share and operating income, are in a leading position.

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In the past five years, Hechuan Technology has relied on general servo and small PLC products, among which the servo market share is second only to Huichuan among domestic manufacturers. In addition, the operating income of Hechuan has doubled in the past six years, from 283 million to 1.127 billion, achieving nearly four times the growth.

The core business of Xinjie Electric includes PLC, HMI and drive system, which in the field of small PLC, Xinjie Electric has grown into one of the leading enterprises in China, 2023 Xinjie Electric small PLC market share of 7%, ranking fourth, ranking second only to Huichuan in domestic manufacturers. In the past six years, Xinjie Electric’s operating income has grown positively, from 600 million in 2018 to 1.506 billion in 2023.

Domestic automation brands will further develop rapidly

0010-32695 1) The market share of a group of leading domestic manufacturers represented by Huichuan Technology and Zhongcong technology also increased rapidly in China. This can be seen from the change in the proportion of the servo market in 2019-2023, and the market share of domestic TOP manufacturers reached 38% in 2023, which has exceeded that of foreign TOP manufacturers.

2) There is no doubt that domestic brands will continue to develop well in the future, and now domestic manufacturers Huichuan is the champion in the general automation market, and there is still a certain gap between the second-tier manufacturers and them. In the next two years, who may be the first to break through the foreign investment wall and become the second “Huichuan”?

First, it is necessary to have a rich product line to meet the needs of different industries and application scenarios. Secondly, continuous technology upgrading and cost-effective product strategy are needed to attract a large number of small and medium-sized enterprise customers, and lay a broad market foundation by optimizing production processes, reducing costs and reasonable pricing strategies. Finally, product development attaches great importance to user needs, and user-centered product development can improve product market acceptance and user satisfaction, and enhance customer stickiness.