On the increasingly competitive global manufacturing stage, accurately grasping the market segmentation of
industrial automation has become crucial for enterprises to formulate strategies and seize opportunities.
As the cornerstone of smart manufacturing, industrial automation is reshaping the global manufacturing
landscape at an unprecedented pace. With continuous technological advancements and expanding application
scenarios, this market has evolved into a complex, multi-layered, and multi-dimensional ecosystem.
Understanding these market segments not only enables precise positioning but also unlocks growth potential
and optimizes resource allocation. This article delves into the core segments of industrial automation, revealing
the underlying logic and future opportunities within this vast blue ocean.
Two Market Models: Dual Pathways of Process and Discrete Manufacturing
The industrial automation market can be primarily divided into two directions: process automation and discrete automation
(also known as factory automation), each corresponding to distinct production models and technical requirements.
Process automation primarily serves industries with continuous production processes, such as chemicals, power generation,
and municipal utilities. In these sectors, production flows are fixed and continuous, with automation systems focused on
ensuring process stability, safety, and efficiency.
In 2022, China's process automation market reached 182.6 billion yuan, growing 6.1% year-on-year, primarily driven by
investments in chemical projects and infrastructure.
Discrete automation serves industries assembling individual components, such as machine tools, robotics, lithium
battery equipment, and photovoltaic equipment. Demand in this segment fluctuates significantly. While the 2022
market size was 113.7 billion yuan, specific sectors like lithium battery and photovoltaic industries maintained high
growth momentum, sustaining robust demand for specialized equipment.
Product Segmentation: The Core Building Blocks of Automation
From a product perspective, the industrial automation market can be segmented into several key areas, each with
unique technical characteristics and market dynamics.
Control systems, serving as the “brain” of automation, include Programmable Logic Controllers (PLCs) and Distributed
Control Systems (DCS). The PLC market reached 17 billion yuan in 2022, growing 7.2% year-over-year.
Within this segment, domestic brands are steadily increasing their share in the small PLC market, while foreign
brands continue to dominate the medium-to-large PLC market.
Industrial robots and actuation systems serve as the “limbs” of the automation world, translating control commands
into physical actions. The industrial robotics sector exhibits a trend of domestic brands breaking through while
engaging in global competition and cooperation. Domestic brands are gaining recognition, and industrialization
rates are accelerating.
The sensing and instrumentation sector acts as the “senses” of automation systems, responsible for collecting
various environmental and operational data. In 2022, the sensor market reached 20.4 billion yuan, growing by
15.6% year-over-year.
Machine vision demonstrated outstanding performance with a growth rate of 25%.
Drive systems, including servo systems and frequency converters, serve as the “muscles” of automated equipment.
The frequency converter market reached 37.5 billion yuan in 2022, growing 3.0% year-on-year.
Despite short-term fluctuations, the servo system market maintained a compound annual growth rate of 16.9%
over the past three years, with domestic enterprises continuously enhancing their competitiveness.
Emerging Forces: The Rise of Industrial Software and Cloud Services
Beyond hardware equipment, industrial IoT software and cloud services are becoming the smallest yet fastest-growing
segment within the industrial automation market.
This domain encompasses solutions connecting diverse industrial equipment within factories and enabling
data-driven manufacturing through analytics. Current growth rates reach 18%, significantly outpacing the automation
market average.
Surveys indicate that 69% of industrial automation users and suppliers report digital solutions as a critical
component of their automation efforts, with 94% deeming such solutions particularly vital for future automation
initiatives.
Regional Markets: China's Influence in the Global Landscape
Regionally, China has emerged as a major force in the global industrial automation market. China's industrial
automation market exceeds RMB 250 billion, accounting for over one-third of the global market share.
China's automation industry is projected to achieve leapfrog growth over the next five years.
Meanwhile, the Asia-Pacific region is expected to dominate the global market due to the extensive adoption
of automation technologies across all industries.
Future Trends: Navigating Automation's Evolution
Looking ahead, several distinct trends will shape the industrial automation segment:
Market growth potential remains substantial, with advanced manufacturing markets like China, Japan, South
Korea, and Western Europe poised to lead the automation revolution by 2030. Global sales of industrial
automation control systems are projected to reach 1.87 trillion yuan by 2031.
Shifting labor structures are accelerating automation adoption. Population aging has prompted approximately
40% of employers in high-income countries to pursue transformation, while rising labor costs further drive
automation substitution.
Deepening technological convergence sees emerging technologies like industrial AI, embodied intelligence, and
humanoid robots becoming key focus areas for manufacturers. The profound integration of industrial automation
with digital transformation is reshaping the competitive landscape.
As the industrial automation market becomes increasingly specialized and mature, enterprises must accurately
grasp the characteristics and trends of each segment to gain a competitive edge in the fiercely competitive market.
Whether in the rapidly growing digital solutions sector or the traditional yet stable process control domain,
unique opportunities and challenges exist. Understanding the underlying logic of these market segments is
not only essential for market participants but also the key to unlocking the future of smart manufacturing.