Chinese medium voltage drive market will exceed $1.3 billion by 2015

Sales of medium-voltage drives in the Chinese market are forecast to grow at an average of 16.6% per year from 2010 to 2015, according to a recent IMS Research report The Chinese Market for Medium Voltage Motor Drives – 2012 Edition.


Sales of medium-voltage drives in the Chinese market are forecast to grow at an average of 16.6% per year from 2010 to 2015, according to a recent IMS Research report The Chinese Market for Medium Voltage Motor Drives – 2012 Edition.

Wilmer Zhou, senior analyst with IMS Research’s, recently acquired by IHS Inc., Factory Automation Group, comments, “The market for medium-voltage motor drives is closely related to large projects and capital investment. As the Chinese government tries to transform the economic growth model from investment to consumption, the investment in mines, oil and gas fields and infrastructure expansion will continue, as will energy-saving renovations in factories, which will help to maintain the steady growth of the market for medium-voltage motor drives.”

The Chinese market for medium-voltage motor drives continued to grow steadily in 2011, increasing 15.8% to nearly $700 million, because most industries continued to invest steadily in “green” products. Growth will slow slightly in 2012, as municipality spending and investments are slightly lower in 2011 and 2012.

“In China, users of medium-voltage motor drives have the backing often of being in strong, state-owned groups. These key industries are dominated by the Government, and procurement has always been heavily tinged by politics. Suppliers with good government relationships and those with the backing of state-owned groups have more opportunities in the market”, added Zhou.

Overall, the leading suppliers LD-Harvest, Siemens and Hiconics are capturing a greater share of the market share while the smaller suppliers are holding or losing market share. Siemens and LD-Harvest, the market leaders, each accounted for an estimated 15 to 17% of total 2011 revenues. With an aggressive market strategy, Hiconics is estimated to have increased its market share to 11.5% in 2011.

For small companies looking to enter the medium-voltage drive market the three largest barriers to entry are: having to bid at an unreasonably low price, extended payment terms, and no service fees. However, the higher profit margin in high-end markets (mining hoists, traction, rolling mills, and applications with high power rating) is attracting new suppliers. There are just over 30 suppliers to the market for medium-voltage motor drives in China. Supply is very concentrated, with the top three suppliers accounting for an estimated 45% of the total revenues in 2011, and the top 10 suppliers accounting for 77%.

IMS Research forecasts that growth from 2013 to 2015 will ramp up. The reasons for this are that investment into infrastructure is expected to come back after a short downturn in 2012, the number of retrofit projects for power saving will increase, and there will be increased installation of high-efficiency motors.

No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Learn how to create value with re-use; gain productivity with lean automation and connectivity, and optimize panel design and construction.
Machine design tips: Pneumatic or electric; Software upgrades; Ethernet advantages; Additive manufacturing; Engineering Leaders; Product exclusives: PLC, HMI, IO
Industrial wireless cyber security: More complex than black and white; IIoT at the I/O level; Process modeling; Cyber security research
Robotic advances: Software, form factors; System-based ROI; Embedded control; MES and information integration; SCADA and cyber security; Position sensor; Controller, I/O module
Learn how Industry 4.0 adds supply chain efficiency, optimizes pricing, improves quality, and more.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Cyber security attack: The threat is real; Hacking O&G control systems: Understanding the cyber risk; The active cyber defense cycle

(copy 5)