8 March 2026 | 1:28AM HKT Equity Research c45a43530f604d12bcb9a82b5aa6b9f6 n 2026 demand outlook and guidance: For harmonic reduction gear sales, the company expects 15%~20% growth for industrial robot applications, 30%~40% for cobots (collaborative robots), and potentially multi-fold increase for humanoid robots in 2026. New orders from humanoid customers in 2026 YTD has surpassed total humanoid orders in full-year 2025. The company is still actively cooperating with a large US customer, but this customer ...

Summary of China Industrial Robot & Automation Landscape (4Q25) Industry Overview - The total industrial automation (IA) market experienced a decline of -3% year-over-year (yoy) in 4Q25, with project/OEM markets at -6% and +1% yoy respectively. The full year 2025 showed a modest decline of -1% yoy, contrasting with Goldman Sachs' estimate of 0% growth [25][27]. - Total industrial robot (IR) sales reached 92,000 units in 4Q25, reflecting an increase of +18% yoy and +14% quarter-over-quarter (qoq). The full year 2025 sales growth was +14% yoy, totaling 336,000 units [25][30]. Market Share Insights - Domestic players maintained a majority market share of 54% in the IR market for 4Q25, a slight increase of +1 percentage point (pp) yoy but a decrease of -1 pp qoq. This share remained consistent for the full year 2025 [25][40]. - FANUC and Kuka (Midea) ranked as the top two players in the IR market, with ESTUN dropping to No. 3 with a 10% market share, and Inovance at No. 4 with a 9% share [25][40]. Segment Performance - **Small 6-axis Robots**: Domestic market share fell to 55% (-2 pp qoq/-1 pp yoy). FANUC led with a 13% share, while ESTUN and Inovance held 11% and 5% respectively [25][40]. - **Large 6-axis Robots**: Domestic share decreased to 30% (-3 pp qoq/-3 pp yoy). ESTUN maintained a 15% share, while Inovance improved to 3% [25][40]. - **SCARA Robots**: Domestic players held 58% of the market (-1 pp qoq/+3 pp yoy), with Inovance leading at 28% [25][40]. Component Market Insights - Inovance led the IA components market with a 27% share in servo motors, a decline of -4 pp qoq and yoy. It also held a 19% share in low-voltage inverters, down -3 pp qoq but up +2 pp yoy [26][40]. - The company ranked No. 4 in small PLCs with a 7% share, remaining flat qoq and yoy, and dropped to No. 6 in mid-to-large PLCs [26]. End-Market Growth - The 4Q25 showed significant growth in end-markets such as lithium batteries (+29% yoy), auto parts (+26% yoy), and semiconductor (+21% yoy). However, the solar sector lagged with a decline of -18% yoy [25][34]. Competitive Landscape - The competitive landscape remains intense, with domestic players facing pressure from both local and international competitors. The market dynamics are shifting rapidly, particularly in the SCARA and small 6-axis segments [25][40]. Key Takeaways - The industrial automation market is experiencing a downturn, but specific segments like industrial robots are showing resilience and growth. - Domestic players are maintaining a majority market share, but competition is intensifying, particularly from established international brands. - Growth in key end-markets indicates potential opportunities for recovery and expansion in the industrial automation sector. This summary encapsulates the critical insights from the 4Q25 report on the China Industrial Robot and Automation landscape, highlighting market trends, competitive dynamics, and growth opportunities.