China Factory Automation and Industrial Controls Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The China Factory Automation and Industrial Control Market are Segmented by Product Type (Industrial Control Systems (Distributed Control System, Programmable Logic Controller, Supervisory Control and Data Acquisition, Product Lifecycle Management, Human Machine Interface, Enterprise Resource Planning, Manufacturing Execution System)), Field Devices (Machine Vision Systems, Sensor, and Transmitter, Electric Motors, Safety Systems, Industrial Robotics) and by End-User Industry (Oil and Gas, Chemical and Petrochemical, Power and Utilities, Automotive, Pharmaceutical, Food and Beverage).

Market Snapshot

CAGR
Study Period: 2018-2026
Base Year: 2020
CAGR: 10.02 %

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Market Overview

The China Factory Automation and Industrial Controls Market are expected to witness a CAGR of 10.02% over the forecast period (2021-2026). The recent novel coronavirus outbreak has been causing significant disruption to the global economy and has drastically changed how many industries operate day-to-day. With work-from-home protocols implemented and shelter-in-place orders continue to propagate, allied market players evaluated and revised their preparedness and response strategies for cyber-incidents. This is particularly evident for players that have implemented industrial control systems (ICS) (DCS, SCADA, or PLS) to monitor and control critical equipment and processes.

  • China has led the industrial robot market, which has driven its way to factory automation in the region. The country is also one of the leading manufacturing countries in the Asia-Pacific region and globally. The increase in shipment of industrial robots in the country and the adoption of various Industrial Control System software across the country facilitates factory automation at scale.
  • The World Robotics 2020 Report by the International Federation of Robotics marked China as the leading country with the annual installation of 140,500 units of industrial robots in 2019. The report also stated that 71% of new robots were shipped in from foreign suppliers, with the domestic market being primarily catered by Chinese manufacturers.
  • Government incentives and targets have advanced the potential of the Chinese market to dive into factory automation. Made in China 2025 plan encourages domestic players to decrease dependency on foreign players. The rapidly soaring labor costs and declining manufacturing labor force supply in China are also helping in the penetration of industrial robots and factory automation.
  • With the rising cost of production in China and the strengthening of the Yuan against the Dollar, investors have been looking at alternate manufacturing destinations. However, for that, manufacturers need to focus on quality production and environment-friendly manufacturing regulations. A fully automated facility takes years to adjust and evolve with the growing technology. Meanwhile unfavorable or delayed initiatives on active automation adoption have limited the growth on a regional basis.

Scope of the report

The syndicated study on factory automation and industrial controls (or industrial automation) include both process and discrete automation. The scope is comprehensive and is limited to China.

By Product
Industrial Control Systems
Distributed Control System (DCS)
PLC (Programmable Logic Controller)
Supervisory Control and Data Acquisition (SCADA)
Product Lifecycle Management (PLM)
Human Machine Interface (HMI)
Manufacturing Execution System (MES)
Enterprise Resource Planning (ERP)
Other Industrial Control Systems
Field Devices
Sensors and Transmitters
Electric Motors and Drives
Industrial Robotics
Machine Vision Systems
Other Field Devices
By End-user Industry
Oil and Gas
Chemical and Petrochemical
Power and Utilities
Automotive and Transportation
Food and Beverage
Other End-user Industries

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Key Market Trends

Industrial Robots are Expected to hold a Significant Market Growth

  • China has led the industrial robot market, which has driven its way to factory automation in the region and is one of the leading manufacturing countries in the Asia-Pacific region and globally. The increase in shipment of industrial robots in the country and the adoption of various Industrial Control System software across the country facilitates factory automation at scale.
  • The World Robotics 2020 Report by the International Federation of Robotics marked China as the leading country with the annual installation of 140,500 units of industrial robots in 2019. The report also stated that 71% of new robots were shipped in from foreign suppliers, with the domestic market being primarily catered by Chinese manufacturers.
  • The strong support of the government in the acquisition program has helped the country to move towards Industry 4.0. For instance, Siasun, a China-based industrial robot maker, has affiliations with the Chinese Academy of Sciences, which is further linked to the government.
  • The adoption of industrial control systems by various companies is a notable trend in the country. The advanced systems allow ease of production in factories. This also points to the gradual shift of companies from depending on manual labor to advanced technology-based systems that allow the automation of the facility.
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Oil and Gas Sector hold a Significant Market Share

  • The geographically dispersed oil and gas platforms require proper communication systems. Growth in solutions like PLC, SCADA, DCS, and safety automation is attributed to the huge development of industries in India and China. It is also expected to create a huge demand for automation products that include DCS systems.
  • In August 2021, Sinopec, China's state-owned energy company, announced the discovery of a new 100-million-tonne oil and gas field in the Tarim Basin's Shunbei area in the Xinjiang province. The company's Northwest China unit drilled an exploration well that produced 865 tonnes (6,315 barrels) of crude oil and 590,000 cubic meters of natural gas per day.
  • Moreover, the oil and gas industry is subject to a number of government regulations for safety, reliability in the plant, and efficiency, owing to which ICS finds applications in remote terminal units (RTU) and pumping and compression stations for ensuring safety.
  • In order to maintain safety and environmental integrity without compromising on the efficiency of the production, the industry is increasingly adopting ICS solutions. Automation helps in integrating information and control, power, and safety solutions to meet the requirement of affordable energy and stringent government regulations.
  • Over the past few years, oil and gas companies have invested heavily into cybersecurity technologies, such as incident response solutions and software capable of collecting logs in ICS environments to enhance visibility and segmenting networks, and to prevent lateral movement and eliminate imminent threats.
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Competitive Landscape

The China Factory Automation and Industrial Control Market is moderately consolidated, with the presence of a few major companies. The companies are continuously investing in making strategic partnerships and product developments to gain more market share. Some of the recent developments in the market are:

  • May 2021 - Emerson announced the PACEdge industrial edge platform, which allows customers to easily construct and scale-up performance-improving applications to assist manufacturers in speed digital transformation projects. The PACEdge platform makes application creation easier by combining open-source technologies into a versatile, integrated, and secure platform for using machine data.
  • April 2021 - Youibot, a start-up company that makes industrial robots, closed an investment of USD 15.47 million in the funding round led by SoftBank Ventures Asia alongside others. The company generates 80% of its annual revenue in China and has plans to spend the raised funds on research and development.

Recent Developments

  • April 2021 - Mitsubishi announced the development of seven new X-Series products, including two HVIGBTs and five HVDIODEs, bringing the total number of X-Series power semiconductor modules to 24. These modules are designed for increasingly big-capacity, small-sized inverters used in traction motors, DC-power transmitters, substantial industrial machines, and other high-voltage, large-current equipment. Beginning in July, the models will be released in order.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Intensity of Competitive Rivalry

      5. 4.3.5 Threat of Substitutes

    4. 4.4 Assessment of Impact of Covid-19 on the Industry

    5. 4.5 Technology Snapshot

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Gaining Prominence for Automation Technologies

    2. 5.2 Market Challenges

      1. 5.2.1 Industry Policies and Regulations

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Product

      1. 6.1.1 Industrial Control Systems

        1. 6.1.1.1 Distributed Control System (DCS)

        2. 6.1.1.2 PLC (Programmable Logic Controller)

        3. 6.1.1.3 Supervisory Control and Data Acquisition (SCADA)

        4. 6.1.1.4 Product Lifecycle Management (PLM)

        5. 6.1.1.5 Human Machine Interface (HMI)

        6. 6.1.1.6 Manufacturing Execution System (MES)

        7. 6.1.1.7 Enterprise Resource Planning (ERP)

        8. 6.1.1.8 Other Industrial Control Systems

      2. 6.1.2 Field Devices

        1. 6.1.2.1 Sensors and Transmitters

        2. 6.1.2.2 Electric Motors and Drives

        3. 6.1.2.3 Industrial Robotics

        4. 6.1.2.4 Machine Vision Systems

        5. 6.1.2.5 Other Field Devices

    2. 6.2 By End-user Industry

      1. 6.2.1 Oil and Gas

      2. 6.2.2 Chemical and Petrochemical

      3. 6.2.3 Power and Utilities

      4. 6.2.4 Automotive and Transportation

      5. 6.2.5 Food and Beverage

      6. 6.2.6 Other End-user Industries

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Schneider Electric SE

      2. 7.1.2 Rockwell Automation Inc.

      3. 7.1.3 Honeywell International Inc.

      4. 7.1.4 Emerson Electric Company

      5. 7.1.5 ABB Limited

      6. 7.1.6 Mitsubishi Electric Corporation

      7. 7.1.7 Siemens AG

      8. 7.1.8 Omron Corporation

      9. 7.1.9 Yokogawa Electric Corporation

      10. 7.1.10 Yasakawa Electric Corporation

      11. 7.1.11 Fanuc Corporation

      12. 7.1.12 Nidec Corporation

      13. 7.1.13 Fuji Electric Co. Ltd

      14. 7.1.14 Seiko Epson Corporation

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK

**Subject to Availability

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Frequently Asked Questions

The China Factory Automation and ICS Market market is studied from 2018 - 2026.

The China Factory Automation and ICS Market is growing at a CAGR of 10.02% over the next 5 years.

Schneider Electric SE, Honeywell International Inc., ABB Ltd., Omron Corporation, Rockwell Automation, Inc. are the major companies operating in China Factory Automation and ICS Market.

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