Comprehensive Industrial Automation Supply Chain
The industrial automation system industry encompasses a full supply chain.
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Upstream: Core components such as chips, semiconductors, electronic parts, permanent magnetic materials, insulation materials, structural parts, and cables.
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Midstream: Manufacturing of industrial control systems and automation devices.
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Downstream: Broad applications in power, metallurgy, construction materials, oil and gas, chemical processing, mining, and municipal engineering.
This integrated structure ensures the sector’s resilience and capacity for innovation across industries.
Plastic Machinery: Driving Demand for Automation
Plastic machinery—vital to the plastic processing industry—has become an important driver of automation demand.
In 2021, China’s plastic machinery sector recorded a main business revenue of ¥83 billion, projected to reach ¥84.9 billion in 2022 if growth remains steady. As global plastic production expands, demand for automated machinery in molding, extrusion, and material handling continues to rise, fueling the growth of industrial automation technologies.
Global Industrial Automation Market Continues Robust Growth
Industrial automation integrates multiple fields, including power, electronics, computing, AI, communications, and electromechanics.
In 2022, the global industrial automation market reached $457.5 billion, up 5.9% year-over-year. With the ongoing Industry 4.0 revolution, smart manufacturing adoption is accelerating across automotive, robotics, renewable energy, and medical industries. Analysts forecast the market to reach $480.7 billion in 2023, marking steady expansion and technological advancement.
China’s Rapid Industrial Automation Development
China’s manufacturing transformation and digitalization have accelerated the adoption of industrial automation systems.
According to Gongkong Data, China’s industrial automation market expanded from ¥139.9 billion in 2015 to ¥264.2 billion in 2022, representing a 9.5% compound annual growth rate (CAGR).
From 2020 to 2022, China’s share of the global industrial automation market increased from 6.7% to 9.1%, underscoring its growing influence and market maturity.
Domestic Brands Gaining Market Share
Despite a late start compared to Western peers, China’s industrial automation industry has made significant strides. Domestic brands held a 43% market share in 2021, and this figure is expected to continue climbing as technological innovation and supply chain localization deepen.
While global competition remains intense, China’s focus on intelligent control, precision manufacturing, and system integration is gradually narrowing the gap with international leaders.
Strong R&D Momentum Fuels Technological Innovation
Industrial automation is inherently research-intensive, involving multiple engineering disciplines. Since 2018, the sector has maintained an annual R&D growth rate of around 20%.
In 2022, total R&D spending reached ¥3.77 billion, a 28% increase year-over-year, while in Q1 2023, R&D investment rose 19% to ¥930 million.
This sustained investment in research and technology development is driving breakthroughs in automation software, control algorithms, and intelligent sensing, laying the groundwork for a new phase of innovation-led growth.
Outlook: Towards Intelligent, Data-Driven Industrial Control
As industrial automation evolves toward smart, connected, and self-optimizing systems, China’s growing ecosystem—from component manufacturing to system integration—positions it for leadership in the global Industry 4.0 movement. With deepening R&D, stronger domestic brands, and rapidly expanding downstream demand, the industrial automation industry is set to play a pivotal role in shaping the intelligent factories of the future.