The Development Trend Of Industrial And Embedded Industry In China In 2019

- Dec 27, 2018-

Industrial & embedded industry by manufacturing recovery and industrial upgrading, demand continues to grow. Since the second half of 2016, the industrial control industry of our country has recovered from the second half of 2016. In 2016, the scale of the industrial automation industry in our country has increased by nearly 1%, and in 2017 it has reached 16.5%, with the market scale reaching 165.6 billion, and the industry scale has broken through the high point of 2011. Annual growth has also reached its highest level since 2011. We see this recovery as a combination of a midstream recovery and a structural recovery driven by industrial upgrading, which will continue in 2018, with orders from the industry control sector growing at a faster pace in the first quarter of 2018. In terms of macro data, from January to March 2018, fixed asset investment finished at 10.08 trillion, an increase of 7.5 percent over the same period last year. In April 2018, China's manufacturing purchasing managers' index (PMI) was 51.4, still above the line of glory and dry. 

Manufacturing is growing steadily, and we expect investment in the sector to continue to grow in 2018, boosting demand in the industrial control industry in 2018. 

The local brand of heavy hammer level gauge is continuing to import substitution through high cost-performance and local advantages. The high-end market of industrial automation is occupied by foreign enterprises such as Siemens, Schneider, ABB, Mitsubishi, etc. Domestic enterprises not only have advantages in cost, but also can meet the diversified application needs of customers. As a result of R & D, many foreign-funded industrial control enterprises are still producing overseas, and the supply period is relatively long, so they are not prepared in advance for this round of industrial control recovery, while local enterprises have a relatively short response time to customer demand, which can meet customers' shorter supply period requirements. In the after-sales service link from the response time, the labor cost also has the bigger superiority compared with the foreign capital enterprise, the brand competition ability continues to improve. 

In 2010, the local brand market accounted for less than 30%, 2018, the local brand market share has already approached 35%. We expect the industry import substitution trend to continue to accelerate in the future.

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