CICC: China's Underwater Robotics Market Poised for Rapid Growth, Focus on Assembly and Supporting Sectors

Stock News11-10

According to ICVTank data, the global underwater robotics market is projected to expand from $9.4 billion in 2024 to over $60 billion by 2030, representing a CAGR of 36.30%. China's market is expected to grow from $1.4 billion to $14 billion during the same period, with a higher CAGR of 46.27%.

China's underwater robotics development started relatively late, with current participants primarily consisting of research institutes and universities. Recent policies under the "Maritime Power" strategy, including the 2025 government work report's inclusion of "deep-sea technology" as a emerging industry, are accelerating market growth. Driven by both policy and technological advancements, the sector is poised for rapid expansion, with investment opportunities in assembly and supporting supply chains.

Key insights: 1. **Market Segmentation**: Underwater robots are categorized into ROVs, AUVs, and ARVs based on cable connections to mother ships. AUVs dominate 51% of the 2024 global market. Chinese developers include institutions like Shenyang Institute of Automation and Shanghai Jiao Tong University's Underwater Engineering Institute, alongside private firms such as Deepinfar Blue and QYSEA Technology.

2. **Growth Projections**: China's underwater robotics applications in 2024 are distributed across marine engineering (35%), aquaculture (20%), scientific research (10%), and underwater recreation (10%). The market is transitioning toward lightweight, integrated, and intelligent designs, with industrial-grade robots facing higher technical barriers due to complex operational environments.

3. **Investment Recommendations**: - **Assembly**: China CSSC Holdings Limited (600150.SH), CSSC Offshore & Marine Engineering (600685.SH) - **Titanium Suppliers**: Western Superconducting (688122.SH), Baoji Titanium Industry (600456.SH), Western Metal Materials (002149.SZ) - **Carbon Fiber**: Weihai Guangwei Composites (300699.SZ), Sinofibers Technology (300777.SZ), Zhongfu Shenying Carbon Fiber (688295.SH) - **Communication Systems**: China Marine Information Electronics (600764.SH), Zhongkehaixun Digital (300810.SZ)

**Risks**: Potential delays in R&D/production and underperformance in specialized equipment manufacturing.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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