High-power ac drives market growing in China

Dedham, MA—Increasing demand for high-power ac drives will likely cause that market to grow at a 11.1% compound annual growth rate (CAGR) from more than $225 million in 2003 to more than $380 million in 2008, according to a new study by ARC Advisory Group.


Dedham, MA— Large infrastructure and manufacturing investment in China in the past few years are increasing demand for high-power ac drives, and that market will likely grow at a 11.1% compound annual growth rate (CAGR) from more than $225 million in 2003 to more than $380 million in 2008, according to a new study by ARC Advisory Group .

A growing economy, expanding manufacturing base, increasing middle-class growth, and an investment-friendly climate for industrial expansion have sparked huge growth in China’s high-power ac drives market. “The collective effect of this environment is creating an enormous de-mand for more power generation, oil and chemical production, consumer goods, and infrastructure. These factors are fueling growth in industries which use high-power ac drives,” says Himanshu Shah, ARC’s senior analyst and the co-author of “High Power AC Drive China Outlook.”

Much of the demand for high-power ac drives in China is coming from global manufacturers, which have established new plants in China to produce goods and equipment for domestic and global markets. The need for modern manufacturing technologies to produce consistent and qual-ity products at the lowest costs is creating demand for many automation products, including ac drives ARC adds that users, including China’s manufacturers, typically prefer proven technologies, and value suppliers able to provide vertical, industry-specific drives systems. Also, many large projects require a broad range of automation products or systems, which must be tightly inte-grated. Consequently, global suppliers with these capabilities will likely experience greater acceptance in China.

In addition, commissioning and installation costs of high-power ac drive systems represent a significant portion of the total cost of ownership (TOC). Currently, only a few suppliers offer users a good value proposition that includes these services. “Suppliers who are capable of providing a total package, including products that meet user requirements and the services to support them will dominate the market, ” adds Shah.

Finally, suppliers’ pre-sale and post-sale skills are crucial, but hiring and retaining quality, tech-savvy employees is difficult in China. This issue could pose a serious challenge if suppliers are unable to recruit competent technical support personnel.

For more information, visit www.arcweb.com/res/acdrivehi-chi

Control Engineering Daily News Desk
Jim Montague, news editor

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...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
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.
Choosing controllers: PLCs, PACs, IPCs, DCS? What's best for your application?; Wireless trends; Design, integration; Manufacturing Day; Product Exclusive
Variable speed drives: Smooth, efficient, electrically quite motion control; Process control upgrades; Mobile intelligence; Product finalists: Vote now; Product Exclusives
Machine design tips: Pneumatic or electric; Software upgrades; Ethernet advantages; Additive manufacturing; Engineering Leaders; Product exclusives: PLC, HMI, IO
This article collection contains the 5 most referenced articles on improving the use of PID.
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!

Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
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