China Industrial Tech 2Q26 Robot Automation Landscape Analyzer How are market shares shifting

Equity Research 27 July 2026 | 9:15PM HKT

2Q26 Robot/Automation Landscape Analyzer: How are market shares shifting?

already holds leadership, reinforcing our view that Jacqueline Du | share consolidation is continuing around Inovance’s Goldman Sachs (Asia) L.L.C. strongest verticals. n 2Q26 total industrial robot (IR) unit sales (according 2Q26 key observations on the China Industrial Robot to MIR data) reached 101k, +17%/+15% yoy/qoq vs. 1Q26’s +14%/-5% yoy/qoq; Cobots remained the & Automation competitive landscape fastest-growing segment at +43% yoy. Against this, NBS-reported IR production units grew 24% yoy/28% Post MIR’s estimated sales data (vs. production data reported by qoq, with the discrepancy between production and the NBS) as well as our coverage companies’ business segment domestic sales widening sequentially. Export growth disclosures, we compile our latest landscape analyzer within. helped absorb part of the sequential increase in production. Across robot types, leadership was n Industrial automation (IA) market growth came in at +6% stable at the top but still competitive beneath, with yoy in 2Q26, with the project/OEM (mainly discrete ESTUN/Inovance retaining No.1/No.3 overall, automation) market at -1%/+17% yoy, extending the Inovance sustaining the No.3 position it took from visible OEM-led recovery observed in 1Q26. In this FANUC in 1Q26, and yoy share gains modestly broader environment, Inovance again stands out as consolidating around the top three (ESTUN/KUKA the clearest automation share-gainer: it retained (Midea)/Inovance at 0pp/+1pp/+1pp). No.1 market position in Servo, Low-voltage inverter and SCARA, with Servo share +5pp qoq/+5pp yoy to n By end market, growth was highly concentrated in 38%, PLC share +4pp yoy, and SCARA share +6pp yoy high-tech verticals. Semiconductor sales accelerated with these gains concentrated in categories where it to +65% yoy (the strongest growth since 3Q21); Auto Electronics and Lithium Battery both surpassed 30%

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yoy growth in 2Q26 (vs. 20%+ in 1Q26). Solar reverted to a -9% yoy decline after a one-off positive quarter in 1Q26. n China domestic IR players significantly consolidated share in 2Q26, with domestic brands reaching 60% total market share, up +5pp qoq/+5pp yoy. The localization gain was broad-based across robot and control categories, where domestic players gained share in Small 6-axis/Large 6-axis/SCARA/Servo by +5pp/+2pp/+7pp/+6pp yoy, respectively. At the company level, ESTUN and Inovance ranked No.1/No.3 overall, respectively - directionally consistent with Inovance’s own share consolidation in Servo, PLC and SCARA, with Inovance likely a meaningful contributor to category-level localization gains in Servo and SCARA, given its +5pp yoy Servo and +6pp yoy SCARA share gains. The notable exception was Low-voltage Inverter, where Inovance remained No.1 but saw share decline -2pp yoy, alongside a -3pp yoy decline for domestic players overall, in contrast to the broad-based localization gains elsewhere. n Backed by a strong order intake of 40% yoy in 6M2026, assuming order lead time of ~1-2 months, we believe Inovance’s 2Q IA revenue growth could trend at around 30%~40% yoy, with much narrowed order vs. revenue gap compared to 1Q, supported by capacity expansion undertaken in early 2Q for better conversion. We expect Inovance to outperform peers and the broader market heading into 2Q26 earnings, supported by continued share gains in core control categories (inverters, servo and PLCs).