After more than a decade of rapid development, the automation market of China is finding stability and growth has slowed. However, the demand for automation technologies and products in certain industries is still going strong, representing a weakening in demand for the low-end automation market and the beginning of a new high-end era.
Delta Greentech's Industrial Automation Business Unit (IABU) is thus facing a fast changing and evermore challenging market in China. Mr. Brenna Lu, the general manager of Delta Greentech's IABU, leads his team in maintaining a steady pace with continued sales growth of automation products and solutions in the China market.
Products, Quality and Competitiveness Define the New Automation
Brenna analyzed the automation market in China from two aspects: Industrial Markets and Market Requirements.
In China's Industrial Markets, domestic and energy-related industries such as petrochemicals, chemicals, electric power, municipal construction, elevators and packaging, as well as e-commerce and smart terminal related industry automation, such as logistics and electronics, are experiencing greater development than heavy industries such as metallurgy, paper making, mining, machine tools, construction machinery and mass transportation.
As for Market Requirements, in response to government policies in China, energy saving, production optimization and information technology upgrades are now common market demands. This directly or indirectly contributes to growth in the automation market, for automation technologies and solutions are key factors in energy-efficiency and production improvement in the manufacturing industries.
In general, the development of all industries affects the trends in the manufacturing industries, which then carry over to progress in automation. Brenna indicated that the automation market in China is moving towards intelligence, humanization, quality, and energy efficiency. He said, “We are seeing a new industrial economic structure forming, giving automation a new definition as well. In the future, the value of quality will expand instead of production capacity, and investment will be for competitiveness.”
High-end Application and Full Integration Form the Delta Automation Future
The manufacturing industry in China is at a turning point, where low-end automation products are phasing out and middle and high-end automation is phasing in. To Brenna, this means new market strategies for automation suppliers and manufacturers.
Delta predicted this transformation years ago when it began its development of high-end automation solutions. Delta also started to expand into industrial markets, develop marketing channels, and promote its brand image. These key points are the targets of Delta Greentech IABU.
Brenna said, “We target key industries and provide innovative technologies and energy-saving solutions with the spirit of ‘Automation for Changing World'. Our mission is to help customers improve production efficiency and competitiveness while saving energy and protecting our environment.”
Complete Product Lines for Strong Integration
Facing the changing market, Delta has both the right strategy and products. In recent years, Delta has launched many new products with high efficiency and powerful features, including the high power AC motor drive C2000 Series, power quality products such as the APF/SVG/AFE Series, the mid-range PLC AH500 Series and the industrial Ethernet switch DVS Series.
These products represent Delta's mature automation capabilities for project-based markets. Delta has successfully applied its integrated automation solutions to many industries in the China market.
For power consuming heavy industries such as the chemical industry, paper industry, and metallurgy, Delta provides energy-efficient solutions and power quality solutions. Delta also provides safe, reliable and energy-saving solutions for municipal and transportation applications, including subway systems, harbor crane and hoist systems, large area heating systems, electric power systems, and HVAC systems for public construction in North, Northeast, South, and West China.
Three Major Strategies for Sales and Brand Promotion
Delta has experienced steady growth in the automation market in China in recent years. In 2013, the general growth rate of China's industrial sector was about 3% while Delta Greentech's IABU had a growth rate several times greater with a top ranking market share.
Brenna still looks for constant progress. He said, “China's economy has become very competitive these days with booming manufacturing and automation markets. As the automation industry evolves towards middle and high-end applications, China's automation industry and market will continue to be fiercely competitive and face major changes in the next five years.”
Brenna indicated that to maintain a leading position in the market, Delta Industrial Automation needs to keep improving product and solution development, quality, sales channels and brand image.
In the future, Delta Greentech's IABU will follow Delta Group and aim at three major strategies. “First, we will increase awareness and market share of our new products, especially control products. Second, we will promote Delta's system integration. Finally, we will rapidly duplicate and promote successful applications in most regions in China,” said Brenna. “With the support of Delta Group, Delta Greentech's IABG will continue to be sensitive to the market and determined to bring about a new industrial automation vision.”