1.Introduction
Imagine: In a dynamic modern factory, the complex tasks that once relied on human operations are now being completed by automated equipment with amazing speed and precision. The production workshop is no longer a scene of bustling people, but an efficient collaborative space dominated by smart devices. This transformation not only redefines the boundaries of productivity, but also drives the entire industry forward.
Automated production equipment has surpassed the traditional assembly line model and become the cornerstone of corporate strategic flexibility. According to the latest data, the global automation equipment market has reached 1.2 trillion US dollars in 2023, and it is expected to increase to 1.5 trillion US dollars by 2024 (Source: Statista). This remarkable growth not only reflects the increase in market demand, but also reveals a deeper trend: in today’s complex and changing global market, automatic equipment provides companies with unprecedented ability to cope with uncertainty and rapid changes.
So why is automatic equipment so critical in today’s industrial age? My answer is: because it gives companies an unprecedented strategic flexibility, enabling them to quickly adjust and effectively respond to various uncertainties in a complex and changing global market, rather than just the so-called improvement of factory efficiency, ensuring stable product quality, and solving labor costs, which are so simple on the surface. This is not just the optimization of the production line, but also the transformation of the entire business model.
To better understand this answer, let’s assume a scenario: suppose you are the CEO of a multinational consumer goods company and are facing a major disruption in the global supply chain. Under the traditional operating model, this may lead to factory shutdowns, delayed orders, and even loss of market share. However, companies with advanced automatic equipment can quickly adjust production plans, use production facilities in multiple locations, flexibly allocate resources, resume production in the shortest time, and even seize the market while competitors are still looking for solutions.
This is the real value of automatic equipment: it is not just a production tool, but also a core strategic asset for companies to cope with uncertainty and maintain market competitiveness. In this era of rapid change, only companies with this strategic flexibility can remain invincible in the fierce global competition.
Next, we will take a deep look at the main trends, drivers, and potential challenges of the automatic equipment market in 2024 to help you gain a favorable position in this highly competitive market and lay a solid foundation for future success.
2. The current status of the automation equipment market
Market size and growth rate
Imagine that automated assembly line equipment is like a super assistant in the factory, doing work that once required dozens of people to complete. Moreover, they are not only fast, but also extremely reliable. These devices are becoming more and more popular and have almost become a “secret weapon” for companies to improve efficiency. According to Statista, the size of the global automation equipment market has reached 1.2 trillion US dollars in 2023, and it is expected that this figure will soar to 1.5 trillion US dollars by 2024 (Source: Statista). You can think of this growth as a moment for automated equipment to shine on the global stage. They are not only increasing production speed, but also helping companies to respond flexibly to various changes.
Main application areas
In all walks of life, automated assembly line equipment is showing its prowess. For example, imagine that you are visiting an electronics factory. Those devices are like a highly trained army, and each component is accurately installed, tested, and packaged on the assembly line, and the whole process requires almost no human hands. The “intelligence” of these devices allows them to automatically adapt to different product requirements, thereby greatly improving production efficiency.
Let’s look at the food processing industry. Automated assembly line equipment is simply the “guardian of food safety” here. From raw material processing to packaging, the whole process is done in one go, which not only saves time but also ensures the hygiene and safety of food. Similarly, in the logistics industry, automated sorting systems and intelligent conveyor belts are like a group of busy elves, helping warehouses to quickly process thousands of packages, especially during e-commerce promotions. These devices are really “saviors”.
Regional market distribution
The global demand for automated assembly line equipment varies significantly. Old industrial powers such as North America and Europe began using these devices many years ago, just like their veterans. And they are still growing steadily, especially in the automotive and high-end manufacturing fields.
Turn your attention to Asia. This is the “new favorite place” for automated equipment. Countries such as China and India are striding towards intelligent manufacturing, and companies here have invested heavily in introducing automated assembly line equipment. According to the International Federation of Robotics (IFR), the Asia-Pacific region currently accounts for nearly 70% of the total installed capacity of industrial robots in the world, and this trend continues to strengthen.
In emerging markets such as Latin America and Africa, although automation started late, demand in these places is also growing rapidly. You can think of these markets as “treasures to be developed”, and those companies that have laid out early will have the opportunity to make a fortune in the future.
Competitor Analysis
Speaking of competition, there is no shortage of “big players” in the automated assembly line equipment market. Giants such as Siemens, Schneider Electric and Mitsubishi Electric are the “big brothers” in the market. They have strong technology and global layout and have long dominated the market.
However, don’t think that there are only these big guys in the market. There are also some emerging companies that are rising rapidly, especially in the fields of Internet of Things (IoT) and data-driven smart manufacturing. These “small companies” are slowly occupying a place in the market through innovative technology and flexible business models, like a dark horse, bringing considerable pressure to the big brothers.
Although the competition is fierce, it has also promoted technological progress in the entire industry. More and more companies are joining in the research and development and application of automated assembly line equipment. In the future, more novel products and solutions will emerge in the market to help various industries better cope with challenges and enhance their competitiveness.
3. Key trends in the automation equipment market in 2024
Growing demand for highly customized automation equipment
In 2024, customized automation equipment will become the “new favorite” of the manufacturing industry, as market demand is moving towards diversification and personalization. If companies can provide highly customized automation equipment, they can better meet the unique needs of customers and gain an advantage in the market. JCN has demonstrated the possibility of such customization through PUR hot melt adhesive veneer, honeycomb composite and automatic packaging equipment. Imagine that a furniture manufacturer can process products of different materials on the same production line, and these equipment are like a flexible “dancer” that can accurately adjust every operation link to ensure product quality. This ability can not only enhance customer satisfaction, but also bring higher pricing power and profits. However, if companies cannot provide such customized solutions, they will find it difficult to cope with diverse market demands, lose the opportunity for large orders, and eventually be surpassed in the market by competitors who can flexibly respond to changes in demand, especially for large companies. Many large listed companies have very high requirements for the customization capabilities of general suppliers, because high customization capabilities are also a reflection of the company’s strength.
Wide application of integrated production lines
Integrated production lines are the key to improving efficiency in the future manufacturing industry. They can seamlessly connect multiple production links to form an efficient whole. JCN’s integrated production lines, such as PUR hot melt adhesive honeycomb composite equipment and automatic packaging lines, have proven the power of this integration. Imagine a food processing plant that has introduced an integrated production line. From raw material processing to finished product packaging, the entire process is as smooth as flowing water. The operator only needs to press a button on the console, and the production line can automatically complete all steps. This fully automated process not only reduces the error rate, but also greatly improves production efficiency and saves a lot of labor costs. Take the case in our previous article. It was the first company the reader worked for. At that time, the company also had an integrated automated production line. This led to a problem that after completing one of the steps in the production of the product, people needed to use tools to consign the product to the next process step for the next step of processing. The time cost in the middle was often higher than the money cost. Let’s do a calculation here. If there is a batch of products that need to be completed, the number of products is 100, and there are two parts of the process to be done. Each part of the process takes 5 minutes, and the process to complete a product takes 10 minutes. The time required for the integrated production line is: 5 (the time for the first step of the first product) + 5 (the second step of the first product) + 99*5 (each subsequent product is also completed in the first and second steps in parallel, and one product is completed in 5 minutes) = 505 minutes. In the traditional way, after all products complete the first step, they will do the second step uniformly. The time required is: [5 (the time required to complete the first step) + 5 (the time required to complete the second step)] * 100 (number) = 1000 minutes. I believe that this calculation result and conclusion are obvious. Innovation in environmental protection and sustainable development Environmental protection has become a topic that modern enterprises cannot ignore, because environmental protection and sustainable development are no longer a slogan, but have become a common concept of mankind around the world. This trend will be more significant in 2024. JCN incorporates environmental protection concepts into the design of its equipment. From reducing the amount of glue applied to optimizing energy efficiency, to the anilox roller that does not need to be replaced for life, every link is committed to reducing the environmental impact of the production process. This environmental innovation not only complies with increasingly stringent environmental regulations, but also helps companies establish a green brand image and attract more environmentally conscious customers, especially in countries such as the European Union, such as IKEA. Companies that fail to keep up with the pace of environmental innovation will face higher compliance costs and the risk of losing customers, especially in recent years. Many countries have invested more in environmental protection and sustainable development, and have strengthened the constraints of laws and regulations on this area. As the market’s requirements for environmental protection continue to increase, companies that fail to achieve green transformation will gradually be eliminated in the market competition. After all, environmental protection has become a global trend in the new era.
Popularization of intelligent operation interface
In 2024, the intelligent operation interface will become the standard configuration of automated equipment, simplifying the operation process and reducing the error rate. At the same time, this also saves the company’s costs from the side. If companies can take the lead in adopting the intelligent operation interface, they can greatly reduce the time and cost of employee training, and the use of equipment will become more intuitive and efficient. Imagine that a novice operator can easily control the entire production process through a touch screen interface similar to a smartphone, without the need for complex training. This intelligent operation method not only improves production efficiency, but also allows enterprises to adapt to market changes more quickly. But the most important point for enterprises, perhaps a problem that many readers are reluctant to accept, is that if the interface is very simple, or even just a few words or letters are needed to complete this very simple operation, it also means that there is no need for so many highly educated talents. The biggest difference between high education and low education at this time is the cost of hiring. Then those companies that fail to keep up with this trend will suffer from the complexity of equipment operation and employee training costs, making it difficult to achieve efficient production, and ultimately lose in the competition with intelligent opponents.
Safety protection upgrade of automated equipment
In 2024, the safety protection of automated equipment will become the focus of enterprises. With the improvement of automation, it is becoming more and more important to ensure the safety of equipment operation and the safety of operators. JCN’s equipment has made significant improvements in safety protection, by adding more physical barriers, safety sensors and emergency shutdown devices to ensure that any abnormal situation in the production process can be discovered and handled in time.
This safety upgrade is not only to meet stricter safety standards, but also to give operators more peace of mind when using equipment. For example, during the production process, once abnormal operation or equipment failure is detected, the safety system can immediately trigger the emergency shutdown function to prevent accidents. For enterprises, this protection measure can significantly reduce downtime and equipment damage caused by accidents, thereby reducing operating costs. Enterprises that ignore safety upgrades may face a higher risk of accidents and the resulting legal liabilities, and their operational stability will be significantly inferior to competitors who attach great importance to safety.
4. Market drivers and challenges
Market drivers
Technological progress
In this era of rapid technological development, technological progress is the “super engine” that drives the growth of the automation equipment market. New technologies emerge in an endless stream, constantly refreshing the performance and functions of equipment. Imagine that the latest glue coating system launched by JCN is 30% more efficient than previous equipment, which can not only complete production quickly, but also improve product quality. If companies can seize these technological dividends in time, it will be like taking the lead in the competition, and production efficiency and market competitiveness will rise sharply. However, if companies cannot keep up with this wave of technological trends in time, it will be like driving a classic car on the highway, with low efficiency and unstable quality, and may eventually be left behind by more innovative competitors in the market.
Labor shortage
Labor shortage has become a “big headache” for the global manufacturing industry, especially those industries that rely on skilled workers. Automation equipment is the best medicine to solve this “heartache”. By introducing JCN’s automation equipment, companies can significantly reduce their dependence on manpower, and the production line will operate automatically, easily coping with the challenge of labor shortage. Imagine that after a factory introduces automated equipment, it can maintain efficient production even if it cannot recruit enough workers. However, those companies that still rely on a large number of manual labor are facing the problem of difficulty in recruiting workers and high costs. They are “living off their old capital” every day. Not only are costs getting higher and higher, but they may also lose orders due to insufficient productivity and eventually lose in the market competition.
Cost-effectiveness
Automated equipment is not only an “efficiency machine”, but also a “money-saving artifact”. By reducing the waste of raw materials and improving the utilization rate of equipment, companies can significantly reduce costs while producing efficiently. JCN’s equipment is particularly outstanding in this regard. They help companies save a lot of resources and time without reducing production. Imagine that a company, after adopting efficient automated equipment, can not only hold its ground in the price war, but also remain profitable in the market. However, those companies that are still using old equipment not only have terrifyingly high production costs, but also have no ability to resist in the price war, and are eventually beaten “out of control” by opponents with more cost advantages.
Changes in customer needs
The market is changing rapidly, and customer needs are also “one thing today, another thing tomorrow”. Companies need flexible production methods to cope with these changes, and JCN’s automation equipment is a powerful tool to meet this challenge. Through modular design and highly customized functions, the equipment can quickly adjust the production process according to the special needs of customers. For example, a food packaging company needs to change the packaging specifications in a short period of time. JCN’s equipment only needs to be simply adjusted to meet the new needs and continue to produce efficiently. Companies that fail to adapt to changes in customer needs may lose valuable orders due to slow response and gradually be eliminated by the market.
Market Challenge
High Initial Investment Cost
When it comes to automation equipment, many companies first think of “expensive”. Indeed, the high initial investment cost of automation equipment often makes companies “daunting”. Although these equipment can bring considerable cost-effectiveness in long-term use, the initial capital pressure is still a big problem. Imagine a small manufacturing company that wants to introduce JCN’s automation equipment, but has limited funds and cannot pay all the expenses at once. If they can invest in stages or seek financing support, the company can ease the financial pressure, smoothly introduce automation equipment, and improve productivity. Companies that cannot overcome financial obstacles will continue to use inefficient old equipment and gradually lose their advantages in market competition.
Technical complexity and talent shortage
Automation equipment is becoming more and more complex, and operation and maintenance require more expertise. But the reality is that talent with these skills is very scarce. Although JCN provides comprehensive technical support, companies still need to train a group of professionals who can operate and maintain these equipment. Imagine that a company has introduced the most advanced equipment, but cannot fully utilize the advantages of the equipment due to the lack of suitable talents. This is like buying a luxury car without a driver’s license and never being able to drive its best performance. Companies that cannot solve the problems of technical complexity and talent shortage will find it difficult to realize the full potential of automation equipment, have low production efficiency, and find it difficult to gain a foothold in the market.
Market access barriers
For small companies that are just starting out, it is not easy to enter the automation equipment market. Both the technical threshold and the capital requirements make these companies difficult to move forward in the market. Imagine that a startup wants to enter the field of automation equipment, but has been unable to break through the bottleneck due to technical and financial limitations. If these barriers can be gradually overcome by cooperating with industry giants such as JCN, or by introducing advanced technologies and market segmentation strategies, companies will have the opportunity to gain a foothold in the market. Those companies that cannot break through the market entry barriers will face the risk of having their market share divided up by larger companies and eventually be eliminated by the market.
5. Future Outlook and Suggestions
Industry Outlook
In the next few years, automatic equipment will become the “golden key” of the manufacturing industry, opening the door to improving productivity. According to the World Economic Forum, by 2025, automation and digital transformation are expected to create more than $12 trillion in economic growth for the global manufacturing industry. This means that it is urgent for companies to adopt automatic equipment, because the butterfly effect of making this decision one second late may not be as simple as one second less revenue for the factory. Seizing this wave of growth and occupying a leading position in the market may be the best strategy under the current circumstances. On the contrary, companies that fail to invest in automation technology in a timely manner may find themselves gradually marginalized by the market and lose their competitiveness.
Focus on the ease of use and operation training of equipment
The widespread application of automatic equipment has brought unprecedented efficiency improvements, but the complexity of operation has also increased, because the more automated the mechanical equipment is, the more complex the operating logic sequence in the background is, and at the same time it brings huge challenges to the ease of use and operability of the equipment, or should it be said that the convenience of operation. According to a report by the International Federation of Robotics (IFR), 75% of manufacturing companies have experienced varying degrees of productivity decline after introducing automated equipment due to operational complexity and insufficient training. This data reminds us that when purchasing, in addition to ensuring the improvement of personnel training, companies must also ensure that the operating system of automatic equipment is as intuitive and easy to use as possible, and require suppliers to provide comprehensive operation training programs, and even on-site practical demonstrations. By introducing a more user-friendly operation interface and providing training anytime and anywhere through online platforms, companies can greatly shorten the learning curve of employees and reduce operational errors. Companies that attach importance to operation training will be able to smoothly achieve automation transformation and maintain a competitive advantage in the market.
Strengthen equipment maintenance and upgrades
In the manufacturing industry, equipment downtime directly affects the company’s profits. According to the Harvard Business Review, unexpected equipment downtime causes losses of up to $50 billion to the manufacturing industry each year. To avoid such losses, companies need to pay more attention to the maintenance and upgrade of automatic equipment. By implementing predictive maintenance, routine mechanical maintenance, and timely replacement of daily wear parts, companies can prevent equipment failures before they occur and reduce the risk of production interruptions. More importantly, we should communicate with suppliers regularly to obtain feedback on the latest status of the equipment, obtain time and technical guidance for the replacement of wearing parts on automatic equipment, and ensure that the equipment is always in the best condition to adapt to changes in market demand.
Improve the response speed and quality of after-sales service
In a highly competitive market, the quality of after-sales service often determines customer loyalty. According to Accenture’s research, 89% of customers believe that fast and effective after-sales service is one of the main criteria for their selection of suppliers. For suppliers of automatic equipment, it is crucial to establish a fast-response after-sales service system. This includes not only 24-hour online support and remote diagnosis services, but also preventive maintenance suggestions to help customers deal with problems before they occur and after problems occur. After training, customer service staff can completely help customers solve routine problems in a timely manner based on pictures, videos, text descriptions, etc. provided by customers, instead of having to confirm the problem and solve it after encountering a problem. The link in between is too long, and every second of delay may be tens of thousands of losses for customers. By providing efficient after-sales service, companies can significantly improve customer satisfaction and enhance customer loyalty, thereby gaining an advantage in the market.
6. Conclusion
Looking back at what we have discussed along the way, automatic equipment is no longer “icing on the cake”, but the “core power source” of the manufacturing industry. By improving production efficiency, saving resources and reducing costs, automatic equipment is helping companies to gain a firm foothold in the fierce market competition. In the article, we also mentioned the importance of equipment usability, operation training, maintenance upgrades and after-sales service, which are all “compulsory courses” that companies should focus on in future development.
These views repeatedly emphasize a truth: in this era of rapid technological development, automatic equipment is not only a “good helper”, but also the “lifeline of survival and development” of enterprises. Enterprises must always maintain sensitivity to new technologies and use these equipment flexibly to let them “escort” the operation and growth of enterprises.
Of course, this also triggers a thought: On the road ahead, how should enterprises use these “high-precision” equipment more intelligently to maximize their potential? No matter how advanced the technology is, it depends on how you use it. What enterprises need to do is to find the “best use” and make automatic equipment truly their “magic weapon for winning”.
Finally, I want to remind everyone that in this ever-changing market, whoever can seize the opportunity will win applause on the stage of the future. Perhaps it is this flexibility and acumen that allows some companies to stand out and become the “vane” of the industry.
