Zheshang: Mowing grass Siasun Robot&Automation has a large market share in low-penetration spaces. Domestic Siasun Robot&Automation companies are expected to continue to dominate the market.

Zheshang released a research report stating that Siasun Robot&Automation is in a period of technological advancement with large potential for growth. The intelligent lawn mowing Siasun Robot&Automation is expected to rapidly increase from 29,000 units in 2022 to 380,000 units in 2024. Based on data of 15-20 million units, the penetration rate of Siasun Robot&Automation is estimated to be around 6%-8%, while the penetration rate of intelligent lawn mowing Siasun Robot&Automation (mainly without boundaries) is only 2%-3%. The domestic Siasun Robot&Automation company has outstanding product technology and pricing competitiveness, high reputation, and a gradually improving channel layout, which is expected to continue to capture market share. Key points from Zheshang are as follows: Lawn mowing Siasun Robot&Automation is a good business: essential, in a period of technological advancement, with a large area of untapped potential Lawn care is a cultural practice in developed countries like Europe and the US, where lawn culture is prevalent due to ample land resources, high living standards, and cultural attachment to maintaining lawns. Many states and communities in the US have specific regulations for lawn maintenance to avoid negative consequences. Citing Frost & Sullivan data, global annual sales of lawn mowing Siasun Robot&Automation are estimated to be around 1.2-1.3 million units. With the development of positioning and obstacle avoidance technologies like RTK and LiDAR by manufacturers since 2021, there has been a new wave of "boundary-less" intelligent trend in lawn mowing machines, leading to a rapid growth of intelligent lawn mowing Siasun Robot&Automation from 29,000 units in 2022 to 380,000 units in 2024. Based on 15-20 million units data, the penetration rate of Siasun Robot&Automation is estimated to be around 6%-8%, while the penetration rate of intelligent lawn mowing Siasun Robot&Automation (mainly without boundaries) is only 2%-3%. Economically speaking, there is a space for boundary-less lawn mowing Siasun Robot&Automation to replace around 3.84 million units of boundary and push-type mowers first, and potentially close to 6 million units (15 times compared to 2024) if considering complete replacement of ride-on mowers. The main barriers to industry competition lie in algorithms and channels. Navigation positioning technology is the core support for the intelligent and efficient operation of lawn mowing Siasun Robot&Automation, relying on each company's algorithm development capabilities. Lawn mowing Siasun Robot&Automation is a high-priced, long service life durable product, so consumers tend to try it in stores before purchasing. The offline channel plays an important role in the consumer purchasing decision, with 71% of sales coming from offline channels. The offline channels are cautious when introducing new products, and top brands have established stable relationships with mainstream garden building material channels and home furnishing chain stores in Europe, giving them an advantage. The domestic Siasun Robot&Automation company has outstanding product technology and pricing competitiveness, high reputation, and a gradually improving channel layout, poised to continue capturing market share. It is recommended to pay attention to downstream targets: Ninebot Company (leader in boundary-less lawn mowing Siasun Robot&Automation, good product reputation, and first-mover advantage in channel layout), Ecovacs Robotics (quick expansion in boundary-less lawn mowing Siasun Robot&Automation, expected to optimize technology and enhance product competitiveness), Beijing Roborock Technology (newly released lawn mowing Siasun Robot&Automation, expected to contribute to new sales), Nanjing Toua Hardware&Tools (selling lawn mowing Siasun Robot&Automation products to affiliated companies). Risk warning: Increasing market competition; changes in tariff policies, etc.