Industrial automation refers to the use of industrial control technology to monitor and control various mechanical equipment in the process of industrial production, so as to improve the degree of production automation and achieve the effects of energy conservation and emission reduction. According to different functions, industrial control products can be divided into control layer, drive layer, execution layer, feedback layer, etc. among them, control layer products include control software, PLC, DCS and man-machine interface; The driving layer includes low-voltage frequency converter, high-voltage frequency converter, soft starter, DC driver, etc; Executive layer products include regulating valves, contactors, etc.

The upstream of industrial control products are various electronic components, power electronic components and sheet metal structural parts, such as semiconductor components such as IGBT and DSP chip, electronic components such as resistance and capacitance, permanent magnet materials, insulating materials, plastic parts and cables. The downstream of the industry is the different needs of many industries such as textile, printing, machine tool, lithium battery and 3C. As the core and basic parts of industrial manufacturing industry, the demand of industrial control automation products is closely related to the prosperity of downstream manufacturing industry.

From January to may 2020, the manufacturing PMI index continued to operate in the boom range, driving the growth of industrial control demand. The current round of manufacturing recovery began in August 2016. From January to may 2018, the manufacturing industry continued to maintain a moderate expansion trend. In the first quarter of 2020, the revenue of major industrial control enterprises such as Huichuan technology, Xinjie electric, megmit and Chint electric all increased by more than 20%. We judge that the steady expansion of the manufacturing industry in the second half of 2020 is expected to continue, and the PMI index is expected to continue to operate above the dry and prosperous line, driving the industrial control automation industry to continue to maintain a high outlook.