Market prospect of downstream industry of automation equipment

Downstream applications of automation equipment mainly include consumer electronics manufacturing, new energy industry, home appliance manufacturing, etc. Automation equipment is the basic equipment for the production and operation of these downstream enterprises. Considering the "customization" characteristics of automation equipment, the product demand of the downstream industry has a direct impact on the automation equipment industry, and the rapid growth of the downstream industry will significantly promote the expansion of the market capacity of the industry.

(1)   Consumer Electronics Manufacturing

The consumer electronics industry covers a wide range, not only including relatively traditional TV sets, desktop computers, digital cameras, CD players, stereos, etc. It also includes smart phones, tablets, wearable devices，and other emerging smart electronic products. With the continuous progress of Internet technology and mobile communication technology, the market scale of consumer electronic products is expanding, and the growth rate of intelligent electronic products is the fastest.

Consumer electronic products have the characteristics of fine processing technology, high technical requirements, fast updating speed and continuous innovation. Consumers "like new products but hate old products" faster. The life cycle of consumer electronic products usually does not exceed 12 months. Due to the rapid upgrading of consumer electronic products, the production line cycle is generally about 1.5 years. The smart electronic products represented by smart phones will undergo a large-scale performance and function update every year and a half to two years.

The rapid updating of products directly affects the updating speed of production equipment in the consumer electronics manufacturing industry, and increases the updating frequency of fixed asset investment in this industry. According to the data of the National Bureau of Statistics, from 2012 to 2021, the fixed asset investment in China's electronic information manufacturing industry will continue to grow, and the growth rate will reach 22.30% in 2021. The constant expansion of fixed asset investment in the industry has created extensive and continuous market demand for the application and upgrading of automation equipment in the consumer electronics manufacturing industry.

(2) New energy industry

In the medium and long term, China's industrial policies support and encourage the development of the new energy automobile industry chain, which is a national strategic industry. According to the New Energy Vehicle Industry Development Plan (2021-2035) formulated by the State Council and the Ministry of Industry and Information Technology, by 2025, the sales of new energy vehicles will reach about 20% of the total sales of new vehicles; After 15 years of continuous efforts, the core technology of new energy vehicles in China has reached the international advanced level, and high-quality brands have strong international competitiveness.

Pure electric vehicles have become the mainstream of new sales vehicles, and vehicles in public areas are fully electric; Pure electric vehicles, plug-in hybrid vehicles and fuel cell vehicles are regarded as "three vertical"; Implement the battery technology breakthrough action, and carry out research on key core technologies such as positive and negative electrode materials and electrolyte; Promote the development of the full value chain of power batteries, and encourage enterprises to improve the supporting capacity of lithium, nickel, cobalt, platinum and other key resources; Vigorously promote the construction of charging and changing network; Strengthen international cooperation, actively participate in international competition, cultivate new advantages in the new energy automobile industry, and deeply integrate into the global industrial chain and value chain system.

Driven by various industrial policies, the electric vehicle industry has developed rapidly since 2015. The production and sales of new energy vehicles in China have both increased, including 3.521 million new energy vehicles in 2021, with a year-on-year growth of 157.6%; The output of new energy vehicles in China was 3.545 million, up 159.5% year on year.