Industry 4.0 drives explosive growth in demand for automation parts, and the industry ushers in a golden period of development

June 12,2025

In recent years, with the in-depth promotion of the Industry 4.0 strategy around the world, intelligent manufacturing is reshaping the traditional industrial landscape at an unprecedented speed. As the "cornerstone" of intelligent manufacturing, the automation parts market has ushered in explosive growth and has become a key support for the transformation and upgrading of the manufacturing industry. Industry data shows that the global automation parts market size will exceed US$450 billion in 2024, with a compound growth rate of 12.7% in the past five years. The Chinese market leads the world with an annual growth rate of 18%, showing strong development momentum.

Policy and technology drive demand to explode

The core of Industry 4.0 is to realize the intelligence and automation of production and manufacturing through technologies such as the Internet of Things, big data, and artificial intelligence. At the policy level, many governments have successively issued special plans to support the development of intelligent manufacturing. For example, China's "14th Five-Year Plan" clearly proposes to promote the high-end, intelligent, and green development of the manufacturing industry, and to give tax incentives, R&D subsidies and other policy preferences to automation equipment and parts companies; Germany's "Industry 4.0" strategy continues to deepen, further strengthening the demand for automation parts in the manufacturing industry.
Technological innovation has injected a steady stream of power into market growth. The performance of core components such as high-precision sensors, servo motors, and industrial robot joint modules has continued to break through. Taking servo motors as an example, the positioning accuracy of the new generation of products has been improved to ±0.01mm, and the response speed has been shortened to milliseconds, which can meet the stringent requirements of high-end fields such as precision machining and semiconductor manufacturing. These technological advances have prompted traditional industries such as automobiles, electronics, and food and beverages to accelerate production line upgrades. The number of automation transformation projects has surged by 40% year-on-year, directly driving the demand for automation parts to grow exponentially.

Upstream and downstream synergies in the industrial chain have created new growth points

Stimulated by the explosion of demand, upstream and downstream companies in the automation parts industry chain have ushered in new development opportunities. Upstream chip and precision material suppliers increased their R&D investment, and the self-sufficiency rate of domestic servo drive chips increased from 15% in 2020 to 35% in 2024, effectively alleviating the "stuck neck" problem; midstream component manufacturers actively deployed intelligent production, and companies such as Huichuan Technology and Estun shortened the product delivery cycle by 30% by introducing digital twin technology; downstream system integrators accelerated in-depth cooperation with component companies, launched flexible production line solutions, and promoted the demand for precision reducers, linear guides and other products in emerging fields such as 3C manufacturing and new energy batteries to grow by more than 50%.
It is worth noting that the rise of the new energy vehicle industry has become a new engine for the market. Tesla's Shanghai Super Factory has introduced more than 1,500 industrial robots, and the demand for components such as harmonic reducers and visual sensors has continued to rise; CATL's newly built lithium battery production line has increased the automation rate to more than 95%, driving the sales of special components such as AGV navigation modules and vacuum suction cups to increase by 200% year-on-year.

Challenges and opportunities coexist, and the industry is moving towards high-quality development

Despite the broad market prospects, the automation parts industry still faces many challenges. On the one hand, core technology barriers still exist, and the localization rate of key parts such as high-end encoders and precision bearings is less than 20%. Enterprises need to continue to increase R&D investment; on the other hand, market competition is becoming increasingly fierce, and some small and medium-sized enterprises are trapped in the dilemma of low-price competition, and industry integration is accelerating.
In response to this, leading companies have launched a "technology + service" dual-wheel drive strategy. Siemens launched MindSphere, a digital platform for industrial automation, to provide customers with full life cycle management services for parts; Fana Research and Development has launched a servo system with self-diagnosis function, which reduces the equipment failure rate by 60%. At the same time, the industry standardization process has accelerated, and a number of standards such as the "Performance Test Specifications for Precision Reducers for Industrial Robots" led by the China Machinery Industry Federation have been officially implemented, laying the foundation for the high-quality development of the industry.
With the in-depth advancement of Industry 4.0, it is expected that the global automation parts market will exceed US$1 trillion by 2030. Under the joint influence of policy dividends, technological innovation and market demand, the automation parts industry is standing at a new historical starting point and is expected to become the core force leading the transformation of the global manufacturing industry. In the future, companies with technological research and development capabilities and industrial chain integration advantages will seize the initiative in this wave of intelligence and promote the global industry to a higher stage of development.

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Industry 4.0 drives explosive growth in demand for automation parts, and the industry ushers in a golden period of development

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