The development status of the industrial automation industry in 2017 and downstream industry analysis

Industrial automation control is to control various processes according to various parameters in the production process as variables. Industrial automation products are divided into control layer, drive layer and execution layer.

Main Product Classification of Industrial Automation

From the perspective of the driver layer, the market size of programmable controllers in my country in 2016 was 7.3 billion, a year-on-year increase of 1.4%, and small and medium-sized PLCs grew significantly. PLC is the "CPU" in the industrial field and the core of the control system. Due to the low control complexity and precision requirements in small automation applications in the OEM market, small PLC applications are more common. In 2015, the OEM market accounted for more than 57%, of which 94.18% of small PLCs came from the OEM market.

my country's programmable controller market size (PLC, DIO, etc.) and growth rate

At present, PLC is flexibly used in various fields of industrial control, among which international manufacturers such as GE, Siemens, Omron, and Mitsubishi occupy more than 80% of the global PLC market. In recent years, with the continuous expansion of my country's PLC market, Xinje, Hexin and other domestic enterprises have gradually made efforts. In 2015, Xinjie Electric, as the domestic PLC leader, ranked fifth in market share, accounting for 5%.

my country's small PLC market share in 2015

HMI is a digital device that connects industrial control equipment such as PLCs, inverters, and meters for human-computer interaction, and is generally sold with PLCs. In addition to traditional industrial control companies such as Siemens and Mitsubishi, manufacturers also include professional HMI manufacturers such as Pro-face and Beijer Electronics. In recent years, the market concentration has continued to increase, and domestic manufacturers Xinjie Electric and Kunlun Tongtai have also joined the competition. Since the application industry of HMI is basically the same as that of small and medium-sized PLCs, the HMI market scale increased slightly in 2016. We expect that with the recovery of more downstream industries in 2017, the growth momentum is expected to continue and the process of localization replacement will accelerate.

my country's HMI market size and year-on-year growth rate

Analysis of the Relation between HMI and PLC

The automation market can be divided into OEM market and project market according to downstream applications, each accounting for about 70 billion yuan (including product and service markets). In 2013, the growth rate of the OEM market exceeded the project-based market for the first time, marking the beginning of the upgrade of my country's equipment industry. Project-based market investment in steel, cement and other industries driven by investment has gradually shifted to the OEM market dominated by equipment manufacturing.

2012-2016 OEM and project-based market growth

The OEM market is mainly aimed at the field of factory automation, focusing on standardized and mass-produced equipment, including machine tools, textiles, elevators, plastics, packaging, electronics, etc., and is the most important customer group in FA. OEM manufacturers purchase automated products or molded electronic control systems, and configure them in their own equipment or machinery, emphasizing the accuracy of control and having the characteristics of downstream discretization. In the OEM development process, when the demand for a single product is large and stable, industrial control manufacturers will customize and develop special control systems for subdivisions, and special products that meet the characteristics of the industry, such as elevator integrated products, injection molding machines, etc.

Main industry applications in OEM and project-oriented markets

In 2016, the OEM market grew by 6%, of which electronic manufacturing equipment increased by more than 20%, and medical equipment achieved a growth of about 10%; textile machinery began to recover since the third quarter, and the industry's internal upgrading demand drove the textile machinery market to increase slightly throughout the year; The rise has driven single-digit growth in the machine tool industry; plastic machinery, food and beverage, packaging, printing, HVAC, and elevators have all increased. In the field of heavy machinery, there has been a single-digit drop in lifting, and mining machinery has dropped more than that.

2012-2016 OEM market segment size and growth rate

The OEM market is dominated by single or single sets of equipment, such as machine tools, textiles, elevators, cranes, etc., which are generally purchased separately and the order cycle is about one month, so the response speed to downstream demand is very fast. Once downstream demand for new equipment or alternatives appears, suppliers can immediately feel the industry's boom. Therefore, the increase in OEM orders is a leading indicator of downstream recovery. Since the third quarter of last year, the rapid recovery of the OEM market has brought a rapid increase in the order volume of industrial control enterprises.