Jul 31,2018

Analysis Of Chinese Automation Equipment Market

From the perspective of China's national strategy, some relevant materials will refer to German industry 4.0, American industrial Internet and made in China 2025, which can be used to prove that the national level has already been "at war". It just like that in general consumer level, business information related to "travel, share, consumption upgrade" has already pervasive, while in huge industry and manufacturing level, the revolution of industrial Internet is quiet.

In terms of the bustling venture capital direction, the so-called "capital winter" is only the winter of mobile Internet project and O2O project. The total amount of investment has not decreased, but it is still rising, and the proportion of investment in high-end manufacturing has increased substantially. The reality of the "winter of capital" is that the consumer Internet industry, which is relatively easy for the public to notice, has entered a winter. For high-quality technology companies, it is easier to get money.

Kan Lei, CEO of the Transformation Workshop, publicly declared that the mobile Internet myth has been shattered and that industrial digitization will become the largest outlet within five years. Kan Lei said the industrial robotics market has grown by 20 % year after year and will reach $40 billion by 2020. "Industrial Internet will even reach a market of 1.7 trillion U.S. dollars, 2.6 times that of 2014."

According to the 2015 report of the United States Manufacturing Productivity Innovation Alliance, the growth of information and industrial equipment in the United States will reach more than four times GDP in the next three years, bringing 8 % high growth in the world's largest economy. China's Ministry of Industry and Information Technology issued a document demanding that domestic investment in industrial technology transformation account for more than 40 % of total industrial investment in 2017, which will bring 1.6 trillion yuan of market opportunities for industrial digitization this year.

The birth and development of power generation companies attract the world attention, corporate and industrial changes with the widespread use of electricity which has become more numerous, far-reaching, and long-lasting have received less attention. The emergence of computer companies and giants caused noise to the world, while the widespread use of computers in all walks of life did not cause bursts of alarm. The Internet plunged into the industry and set off the fourth industrial revolution. However, just like these two cases, it is only when you look back that you can sigh about its grandeur.

The industrial Internet is the convergence of the two great revolutions, and you can see magic from just one percent of it.

Ma Huateng said: "Internet +" has not only been limited to government affairs, people's livelihood, medical care and other fields, but has also begun to empower the real economy such as retail, aviation, and manufacturing.

CEO Wang Xing said: China's Internet has entered the "second half", "we only made a very thin layer, mainly online drainage, to help businesses do marketing, to do the last small section of the whole industry chain. In the future, what "Internet +" needs to do is the Internetization of industries from the upstream to the downstream. "

These are just the voices of Internet companies.

As far as the industrial Internet is concerned, there are five forces involved. Competition in the future is a cross-border battle, a battle of integration, a battle of platforms, and a battle of ecology.

The first type of enterprise is the industrial enterprise;
The second type of company is IT companies, such as IBM and Microsoft;
The third category is telecommunications operators, such as China Mobile, China Unicom, and U.S. AT& T;
The fourth category is Internet companies, such as BAT in China, Google, Amazon, etc. in the United States;
The fifth category is emerging start-ups.

Well, it is called "Internet +", “the second half of the Internet”, or "industrial Internet". Let’s go back the concept of the industrial Internet.

"Industrial Internet" is a strategic concept proposed by General Electric Corporation of the United States in 2012. After the United States manufacturing and IT giants formed an industrial Internet alliance, this concept was accepted by the U.S. government and a corresponding support and promotion policy were formulated.

The concept of "industrial Internet" is widely mentioned in China, and is used mostly to call on governments and conglomerates to create "industrial Internet platforms."

In the words of GE CEO Immelt, the so-called industrial Internet is "an open, global network that connects people, data, and machines. The goal of the industrial Internet is to upgrade those key industrial areas. "

Industrial Internet is the integration of the two major revolutions and eventually realizes Super warships.

One is that the industrial revolution brought about the development of hundreds of years of machinery, equipment, facilities and system networks; The second is that decades of development in the Internet revolution have produced superb technology in big data, cloud computing, Super algorithms, and information and communication systems.

"Most of the technological innovations of the industrial Internet will be directly applied in areas of economic activity exceeding $32.3 trillion. By 2025, industrial Internet applications will be worth $82 trillion in output, or half of the global economy.

In commercial aviation alone, saving 1% on fuel over the next 15 years would mean saving $30 billion in costs. Similarly, a 1 percent increase in the efficiency of all the world's gas-fired power plants would mean $66 billion in fuel savings. By making the process more efficient, the global health-care industry will also benefit from the industrial Internet, and a 1% increase in global medical efficiency would mean savings of more than $63 billion. In the global rail freight industry, a 1% increase in efficiency would mean $27 billion in fuel savings.

"Made in China 2025" proposes to promote the in-depth integration of industrialization and informatization, and to pursue the same goal as the industrial Internet.

In fact, the industrial Internet has also created a lot of value in all walks of life in China, and this value will continue to grow.

For example, in the aviation field, some local airlines have realized accurate maintenance scheduling with the help of analysis and prediction service of industrial Internet, which has shortened the maintenance cycle by 90%. In the medical field, the first class hospitals have improved the opening rate of medical equipment to 98.5% through the implementation of the industrial Internet asset optimization scheme and served the grassroots by remote medical means.

The industrial Internet of things technology has been applied to some wind farms in China. Through real-time detection and active adjustment of equipment, the efficiency of wind turbines has been improved by 4%, and the output stability of wind farms has been guaranteed.

China's strengths, its people, its big data and its growing dominance of enterprises are China's real weapons.

Kan Lei, CEO of Transition Workshop, thinks that this round of industrial digital revolution is of great significance to China's rise as a great power because it must be driven by China.

"We believe that the center of industry 4.0 will be in China because the core of industry 4.0 is the value creation of big data," said professor Li Jie, a world-class expert in industrial big data.

"The opportunity brought by industry 4.0 for the transformation and upgrading of China's manufacturing industry is not to achieve automation and informatization, but to focus on the value of manufacturing to users, society and the environment".

The strength of large state-owned enterprises, the development of Internet business models with Chinese characteristics, the effectiveness of government policies, the vigorous rise of new venture companies and the huge market are all advantages that cannot be ignored in China.

Take the performance of industrial robots as an example to show the advantages of China.

In recent years, in order to reduce costs and increase efficiency, a wave of "machine replacement" promoted by the government and carried out by enterprises is speeding up deployment. Big manufacturing provinces such as Guangdong, Zhejiang, and Fujian have been pushing for "machine replacement" at the provincial level, and "black light factories" whose workers are completely replaced by robots have been springing up.

China has continued to import large-scale industrial robots. From 2011 to 2015, China imported the world's largest number of industrial robots for five consecutive years and imported the largest amount of industrial robots for five consecutive years.

At the enterprise level, in January 2017, Midea Group officially announced the completion of the acquisition of German Kuka. Through overseas wholly-owned subsidiary MECCA, Midea Group holds a total of 37,605,700 shares of Kuka Group, accounting for 94.55% of Kuka Group's issued capital.

Kuka, one of the world's four largest robot families, is the purest of the four. Because Kuka is a German enterprise, the acquisition of Kuka will enable the group of Chinese enterprises to directly grasp the essence of German industry 4.0.

China is now the world's largest market for industrial automation equipment and has great potential for further development. It is believed that the boost of the industrial Internet will make China's overall rise possible.