China Automation Market: Monthly tracker: Broad-based acceleration in April; Shortage emerging; May to remain robust

Research evidence excerpt

China Automation Market: Monthly tracker: Broad-based acceleration in April; Shortage emerging; May to remain robust

Broad-based acceleration in April; Shortage emerging; May to remain robust (1)

We conduct monthly channel checks with companies and distributors, and present the latest developments of the China automation market in this monthly series.

We track the monthly sales/orders in China of ~15 automation companies (including Chinese, Taiwanese, Japanese and European companies).

April average growth accelerated to +19% YoY, slightly higher than 1Q26 at +16% YoY

The growth of automation sales/orders in China of the ~15 companies we track averaged +19% YoY in April. This represents

growth acceleration from +12% in March and +16% in 1Q26. The growth acceleration is broad-based across the majority of the

companies we track, which we think is reflective of the healthy market demand. By end market, in April, electronics, battery and

machine tool continued to lead the growth. Solar recovered off a low base.

Supply tightening and shortage emerging; Price inflation continuing

Inovance management flagged capacity constraints in March for automation products as demand exceeded their expectations,

and the company is ramping up production capacity. They also commented that PLCs from certain international brands are in

shortage. Our channel checks reveal that Yaskawa has cautioned distributors about tight supply of certain servomotor products

due to the high demand from semiconductor industry with extended delivery time.

Multiple automation brands have announced price increase YTD, including Siemens, ABB and Schneider from Europe, Eaton from

the US, Omron from Japan, Hiwin and Delta Electronics from Taiwan, and Inovance, INVT and Chint from Mainland China. China’s