Global and China Servo System Industry Report, 2018-2022

The Chinese servo system market was worth RMB8.01 billion in 2017, representing a year-on-year rise of 15.9 percent.

Servo system, an integral part of industrial automation, has been developing steadily under the drive of Industry 4.0 over recent years. Global servo system market was estimated at USD11.83 billion in 2017, an increase of 7 percent from a year earlier, and is expected to expand at a CAGR of 5.8 percent between 2018 and 2022. To be specific, the Chinese servo system market was worth RMB8.01 billion (approximately USD1.19 billion at an exchange rate of 1:6.7518) in 2017, representing a year-on-year rise of 15.9 percent, and is predicted to show a CAGR of 8.6 percent during 2018-2022 thanks to the policy Intelligent Manufacturing 2025.

Product mix: the servo system is composed of servo motor, servo drive, servo encoder and controller. Among them, the servo drive and servo motor are core components, making up about 90% of the whole servo system market. The Chinese servo drive market was approximately RMB4.4 billion in 2017, up 18.2% over the previous year, with medium- and high-end product market being primarily occupied by foreign vendors. The Chinese servo motor market size reported RMB2.9 billion or so in 2017, surging by 16 percent on an annualized basis, and is expected to exceed RMB4.5 billion in 2022.

Market application: The servo system mainly finds application in the OEM market and traditional sectors like machine tool, electronic equipment manufacturing, wind power, textile machinery and packaging machinery. The demand for servo system from electronic equipment manufacturing has grown rapidly in recent years, making it the largest application area over machine tools. The market of the servo system for electronic equipment was RMB1.41 billion in 2017, up 19.2 percent on a year-on-year basis, and is anticipated to keep an AAGR of at least 15 percent from 2018 to 2022. Meanwhile, the emerging industries like industrial robot have sprung up, creating larger demand for servo system. The market of the servo system for industrial robots in China was RMB720 million or so in 2017, jumping by 20.2 percent compared with a year ago, and is expected to approach RMB1.5 billion in 2022.

As concerns competition, suppliers in the Chinese servo system market include Japan-based Yaskawa, Panasonic and Mitsubishi Electric, the USA-based Rockwell, Germany-based Siemens and Bosch Rexroth, France-based Schneider, Mainland China-based Inovance Technology, Taiwan-based Delta and TECO. Among them, Japanese brands enjoy the lion’s share. The top three suppliers in 2017 were Yaskawa, Mitsubishi and Panasonic, with the market share of over 10% apiece. Inovance Technology, the largest local supplier of servo systems in China, seized 5.2% market share in 2017.

China’s servo system industry started late and is still in the stage of import substitution. Taiwanese manufacturers narrowly outperform Chinese mainland peers in production and R&D level, while hover between imported mid-range products and Chinese mainland brands by product technologies and prices. With the performance close to Japanese brands, Taiwanese brands develop faster in the low- and medium-end markets. There are a great number of manufacturers in Mainland China, but they are generally small-sized and less competitive.

The report highlights the followings:

• The definition, classification and industrial chain of servo system
  
• Development course, development trend, market size, market structure, competitive landscape, etc. of global servo systems
  
• Development environment, market size, market structure, competitive landscape, cost structure, development trend, etc. of Chinese servo systems
  
• Market situation, market size, major manufacturers, etc. of servo system components (servo drive, servo motor, servo encoder, controller, etc.)
  
• Application, market size, etc. of the servo system applied markets (electronic equipment manufacturing, machine tool, wind power equipment, food machinery, packaging machinery, industrial robot, etc.)
  
• Operation, servo system business, etc. of 23 global servo system and component manufacturers.