Summary of China Industrial Robot & Automation Landscape (2Q25) Industry Overview - The total industrial automation (IA) market experienced a decline of -2% year-over-year (yoy) in 2Q25, with project and OEM markets declining by -3% and remaining flat at 0% respectively. Expectations for 3Q and 4Q25 are -1% and -2% yoy, with the full year projected to remain soft at -1% yoy [4][26][27]. Key Market Insights - Total industrial robot (IR) unit sales reached 86,000 in 2Q25, marking a significant increase of +20% yoy and +12% quarter-over-quarter (qoq). This performance improved compared to 1Q25, which saw +12% yoy and -1% qoq growth [4][26]. - Domestic brands captured 54% of the total IR market share, an increase of +4 percentage points (pp) both qoq and yoy. Domestic sales volume surged by +30% yoy and +20% qoq, significantly outpacing overseas brands, which grew by +10% yoy and +3% qoq [4][26][39]. Company Performance - **ESTUN** maintained its position as the market leader in industrial robots with an 11% market share, reflecting a +44% yoy and +15% qoq sales volume growth [4][39]. - **Inovance**, ranked 4th overall with a 7% market share, experienced flat sales volume yoy and a -6% qoq decline, although it gained market share in 6-axis robots [4][39]. - In the small 6-axis robot segment, ESTUN ranked 2nd with a 10% market share, while Inovance gained to 4th place with a 7% share, showing a remarkable +105% yoy sales volume increase [4][40]. Segment Performance - The strongest growth in robot types was seen in Cobots (+52% yoy), Large 6-axis (+21% yoy), and Small 6-axis (+18% yoy). SCARA robots grew by +10% yoy, while Delta robots showed modest growth of +4% yoy [4][26][35]. - By end-market, sectors such as Electronics, Auto parts, and Lithium battery showed strong double-digit yoy growth, while the Solar sector underperformed significantly with a -24% yoy decline [4][35]. Component Market Insights - Inovance maintained its 1 ranking in Servo with a stable 34% market share and increased its share in Low Voltage Inverter to 25% (+3pp yoy) [4][26]. - Inovance also broke into the top 5 for Large PLCs, securing the 4th position as the sole domestic player with a 6% market share [4][26]. Competitive Landscape - The competitive landscape indicates that domestic players are gaining ground against international competitors, with notable market share shifts observed in various segments [4][39]. - The overall market share for domestic brands in industrial robots increased to 54%, while overseas brands saw a decline to 46% [4][39]. Conclusion - The China industrial robot and automation market is witnessing a significant shift towards domestic brands, driven by strong sales growth and market share gains. The overall market remains under pressure, but certain segments and companies are performing exceptionally well, indicating potential investment opportunities in the domestic industrial automation sector [4][26][39].