– The Chinese robot market is growing at a CAGR of 21%
– High demand for reducers, controllers, servo motors, etc.
China is intensively nurturing high-tech industries such as robots to move from a “manufacturing power” to a “manufacturing powerhouse”. In line with the central government's policy stance, the Zhejiang government is taking the lead in the development of smart manufacturing under the slogan “Smart Manufacturing in Storage” in “Manufacturing in Storage (浙江制造)”. The government of Zhejiang Province is actively preparing support measures for the development of science and technology innovation. In particular, it is emphasizing the smartization of the manufacturing industry, and is supporting 10% of the cost of purchasing robots for manufacturing companies.
The “Robot Town” in Zhejiang Province, which opened in 2015, provides one-stop services such as robot company incubation, research and development, and operation of a robot exhibition hall. In 2018, with the opening of the “Korea Robot Center” in Robot Town, exchanges and cooperation in the robot industry between Korea and China have become even closer. On May 2022, 5, the Hangzhou Trade Center of KOTRA introduced excellent Korean companies to Chinese companies and VCs through K-Robot in China online and offline IR, and held online consultations to prepare a venue for cooperation between Korea and China robot companies.
□ Event Overview
KOTRA is actively supporting the entry of excellent Korean technologies and products into the local market in line with the demand of local governments and companies for automation and digitalization of production facilities. KOTRA Hangzhou Trade Center held “2022 K-Robot in China” from May 5 to May 18, 5 in cooperation with the Zhejiang China-Korea Science and Technology Innovation Center. This event was held in the form of online and offline IR briefings and online 27:2022 consultations with Chinese buyers.
<Event summary>
[Source: KOTRA Hangzhou Trade Center]
□ Field sketch
[Source: KOTRA Hangzhou Trade Center self-photographed]
<Online consultation photo>
[Source: KOTRA Hangzhou Trade Center self-photographed]
Eight Korean companies with excellent robot technology participated in the online and offline IR briefing session. The IR briefing session was held for about 8 minutes per company, followed by a 15-minute question-and-answer session with buyers and VCs. Product categories of participating companies include distance measuring lidar, reducer, motorized stage, and smart logistics robot in the industrial robot field. etc.
Chinese entrepreneurs who participated in the online IR event voluntarily hoped for in-depth consultations with Korean companies. Twelve Chinese companies applied for one-on-one consultations with Korean companies, and a total of 12 online video consultations were conducted over the course of a week.
< List of participating companies in K-Robot in China >
[Source: KOTRA Hangzhou Trade Center]
□ Growing Chinese robot market
According to the China Electronics Society (Chinese Electronics Society), as of 2021, robot sales in China reached 18 billion yuan (about 839 trillion won), an increase of 15% from the previous year, recording an average annual increase of 8814% since 2016. Among them, industrial robots accounted for the largest share with 21 billion yuan (about 445 billion won). Next, service robots accounted for 7000 billion yuan (about 8 billion won) and special purpose robots with 4384 billion yuan (about 302 billion won). It is predicted that by 6000, the total robot market size in China will increase by 5% to 7291 billion yuan (about 90 trillion won).
<Trend of China Robot Market Size>
(Unit: billion yuan, %)
[Source: China Electronics Society (中国电子学会)]
□ Interview with local buyers
Q1. Please briefly introduce your company.
A1. Our company, located in Ningbo, Zhejiang Province, is a specialized robot manufacturer that researches, develops, and produces industrial robots and service robots. At present, its annual sales are about 1 million yuan (about 189 billion won).
Q2. Which company impressed you at this conference?
A2. Through this consultation, our company conducted consultations with four excellent Korean robot companies. Among them, the product closely related to our company is the H company's speed reducer, which seems to have competitive price. I am interested in testing the reducers currently used in service food delivery robots. Our company also handles 4D and 2D industrial robots, so I think there is a great possibility of business cooperation with Korean companies. It is also possible to sell robots by proxy, so in the case of finished products for service robots of Korean robot companies, we can try to enter the Chinese market together.
Q3. What advice would you give to Korean companies wishing to enter the Chinese market?
A3. In China, the robot industry has developed, and core technologies are gradually being localized. Economic competitiveness is the most important factor for Korean companies to enter the Chinese market. The next most important factor, of course, is that the function of the product must be at least superior to that of a Chinese company.
□ Implications
China is aiming to innovate its manufacturing industry to respond to rising labor costs and an aging population. Accordingly, as the robot market is growing rapidly, the demand for cooperation between Korea and China in the robot industry is expected to increase in the future. Through this K-Robot in China on/offline IR, excellent Korean companies were introduced to Chinese companies and VCs, and the possibility of cooperation between Korean and Chinese companies was confirmed through the conference. Chinese companies showed interest in Korean robot companies with products such as reducers, controllers, and servo motors, which are core robot parts. In the future, it is expected that business demand with Korean companies that have advantages in technology and price competitiveness will increase.
Source: Comprehensive data from China Electronics Society (中国电子学会), China Newspaper Network (中国新闻网) and KOTRA Hangzhou Trade Center