The controller is the command center of the automatic control system. The form of expression changes with the development of science and technology, and has undergone the evolution from mechanical, electronic to digital. Intelligent controller is the most advanced form of controller at this stage. It takes microcontroller chip or digital signal processor chip as the core, containing integrated computer software, circuit hardware, and integrates automatic control.
With the continuous popularization of global intelligence and automation, the intelligent controller market has developed rapidly. In 2017, the global smart controller market reached US$1.35 trillion, a year-on-year increase of 3.85%. It is estimated that the global market size will approach US$200 billion in 2021.
Upstream of the Industrial Chain
The upstream raw materials of the intelligent controller are all kinds of electronic components, mainly including PCBs, IC chips, diodes, MOS tubes, resistors, capacitors, etc., and the supply of raw materials is sufficient. The rapid development of the market has attracted many players into the game, increased internal competition in the industry, and also promoted the improvement of the technical level and product quality of electronic components, which laid a solid foundation for the development of the intelligent controller industry.
Midstream of the Industry Chain
Benefiting from the continuous development of technologies such as artificial intelligence and the Internet of Things, as well as the increasing individual needs of the public, the production of intelligent control has become the focus of attention of major machine manufacturers, but it is often the case for comprehensive machines with weak specialization. Instead of spending a lot of money, manpower, and experience on independent research and development of intelligent controllers, it is better to directly outsource the development and production of intelligent control components to professional manufacturers.
Downstream of the Industrial Chain
Intelligent controllers are widely used in various scenarios, especially in the fields of home electronics, industrial equipment, medical equipment and consumer electronics. The demand for advanced smart products in various industries continues to grow. As the demand for intelligence continues to grow, the usability of intelligent controlled products has been further improved, and the application fields have become more and more extensive. In addition, the progress of network technology and communication technology, the construction of Internet infrastructure and the maturity of technical conditions have also laid the foundation for the development of the intelligent industry. As downstream application fields continue to cut into intelligence and terminal products are constantly updated, the future will be more intelligent, integrated and humanized, creating huge opportunities and challenges for the industry.
Automotive Electronics Market Boosts Smart Controller Market Growth
Intelligent controller is a key component of automotive electronic system. Advances in technologies such as automobile engines, unmanned driving, Internet of Things and new energy will further promote the application of smart controls in this field. The global automotive electronics market is in a growth phase. In 2019, the global automotive electronics market reached US$280 billion, a year-on-year increase of 12%. In 2020, the trend of automobile intelligence will increase the proportion of automobile electronic products in the total automobile cost to 50%.
The Home Appliance Market Will Return Strongly
In the home scene, automatic sensing is realized without any contact with various home appliances, and the intelligent home experience is deeply loved by the younger generation of consumers, which has promoted the rapid growth of the global smart home market. In this epidemic, the concept of smart home has been deeply rooted in the hearts of the people. With strong demand for smart hardware such as smart speakers, smart home appliances, and smart door locks, the development of smart homes has injected growth momentum into the smart controller industry. In recent years, the scale of the global smart home market has shown steady growth. In 2019, global spending on smart home equipment reached US$22.8 billion. However, due to the severe impact of the epidemic, the scale of the global smart home market has declined. In 2020, the scale of global smart home equipment expenditures was US$44 billion, a year-on-year decrease of 15.4%. The current epidemic is under effective control, and the global economy is gradually returning to the right track. It is expected that the smart home industry will return strongly in 2021.
With the continued popularity of lithium batteries, the demand for lithium batteries in consumer electronics, new energy vehicles and other fields is growing rapidly. As one of the main components of the lithium battery, the intelligent controller can control the voltage and current of the lithium battery charging and discharging, as well as the monitoring of indicators such as temperature and energy, ensuring the safety and reliability of the lithium battery. With the continuous expansion of battery capacity and the gradual maturity of fast charging technology, the intelligent controller can not only realize the fast charging of lithium batteries, but also extend the service life. Therefore, as the external demand for lithium batteries expands, the market demand for smart controllers will increase accordingly.
With the continuous improvement of technology and quality of life, various devices closely related to people's lives are developing from the electronic age to the intelligent age. Smart controllers will also face major changes, such as technological breakthroughs, product quality improvements and market demand expansion. The demand for intelligence for terminal products is growing, and the requirements for intelligence are constantly improving. The technical difficulty and added value of intelligent controller products will continue to increase.
Industry concentration is low and orders are relatively scattered. On a global scale, intelligent controllers need to be designed according to different order requirements, resulting in many differences in functions and solutions of intelligent controllers, with outstanding individual characteristics. Smart controllers are widely used downstream, and it is difficult for a single manufacturer to meet the endless design requirements in the market. Therefore, smart controller manufacturers often combine their own advantages and focus on one or several market segments to improve their market share, which has led to a more fragmented pattern of the entire intelligent controller industry.
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