Industrial automation has become a hot investment area in the era of intelligent manufacturing.


Release time:

2019-03-26

According to the survey, sectors such as consumption upgrading, artificial intelligence, industrial automation, big data, enterprise services, industrial interconnectivity, and healthcare remain promising investment options, whereas real estate investment is merely a product driven by middle-class anxiety.

  According to the survey, sectors such as consumption upgrading, artificial intelligence, industrial automation, big data, enterprise services, industrial interconnectivity, and healthcare remain likely to be the best investment options, while real estate investment is merely a product of middle-class anxiety.
 
  According to the report, China’s O2O investment has now become severely overheated, with many projects being put on hold or even pulled out altogether, while the VR/AR sector still lacks strong monetization capabilities.
 
  From the perspective of investors, China has now nurtured several sectors whose development stages are in sync with, or even leading, global markets—for example, live streaming, content entrepreneurship, artificial intelligence, 3D printing, cloud computing, robotics, electric vehicles, and autonomous driving. In these fields, China is essentially on an equal footing with some developed countries. Indeed, in certain areas, China no longer has any established role models to follow; instead, it must forge its own path through exploration and R&D, feeling its way forward step by step.
 
  At this stage, projects with core technological barriers—especially those in the tech sector that could shape the next decade—are more likely to attract capital interest. The opportunities in China’s mobile internet have largely been tapped already, and now is the perfect time to position ourselves for the next big tech breakthrough.
 
  A significant number of investment institutions have already begun or plan to actively deploy resources in 2017 in fields such as artificial intelligence, big data, industrial automation, high-end manufacturing, and intelligent manufacturing.
 
  The survey found that artificial intelligence is the sector most favored by investors. Many investors believe that, as the penetration rate of mobile devices continues to rise and the level of digitalization becomes increasingly sophisticated, sufficient foundational data will also accumulate. Thanks to deep learning, the trend toward intelligent living and manufacturing is no longer a distant dream.
 
  Huang Mingming, founding partner of Mingshi Capital, said: “In the field of AI (artificial intelligence), we believe it will be the next big growth opportunity after mobile internet.”
 
  Another even more important area is undoubtedly industrial automation.
 
  The loss of China’s advantages in artificial dividends, traffic dividends, and the dividends from the first-generation internet technologies will compel Chinese enterprises to refocus on the value of core technological innovation. This, in turn, will create a massive market for companies operating in the fields of industrial automation, high-end manufacturing, and intelligent manufacturing.
 
  In the field of industrial automation, Mingshi Capital has been actively making strategic investments. Huang Mingming’s approach is to start with manufacturers of industrial robot bodies and then expand along the upstream and downstream segments of their supply chains—from core components (such as spindles, reducers, and controllers) through downstream systems all the way to data-driven approaches for large-scale industrial production (data encompassing information from factory robots, production-line data, and user demand data). This data, in turn, informs factories’ production planning and scheduling. For example, Li Qun Automation, Desu Machinery, and Chengzi Automation all fall into this category.
 
  Overall, the real hot investment areas are almost entirely within the smart manufacturing industry—beyond industrial automation and artificial intelligence, they also include the industrial internet, big data, enterprise services, and more. From our perspective as industry insiders, these so-called hot areas can actually all be categorized under smart manufacturing or industrial automation. So don't be fooled by the current fervor in real estate investment; the real investment hotspot is still in the real economy—in the field of industrial automation.