According to a recent analysis by Frost and Sullivan, the Chinese government’s emphasis on green technologies has shown the manufacturing industries the need for energy-efficient electric drives, thus leading to growth in the electric drives sector.
In the report, Chinese Electric Drives Market Forecasts, revenues for the sector were $1,164.2 million in 2005 and in 2012, it is estimated to reach $2,458.1 million.
In addition, the industrialization and automation of manufacturing industries like power, chemicals, textiles and food industries is adding to the electric drives sector growth. Petrochemicals, fine chemicals, pharmaceuticals and other foundation industries will likely contribute to the growth of the market as well, the report says.
Government investments and a forecasted shift towards process improvement and efficiency as the country moves towards global competition are expected to be major growth factors, according to the analysis.
“As domestic manufacturers are seeking to become more efficient in their use of labor and power, electric drives enable them to manage quality and cost,” said Frost and Sullivan Research Analyst Kasandra Luo. “The application of electric drives can receive a boost as modern management and manufacturing techniques are introduced.”
More functionality is available from alternating current (AC) electric drives that are becoming more sophisticated thanks to increased foreign and domestic development investments. AC is also less expensive than direct current (DC) and has greater sales, the report notes.
According to the report, the number of applications that use electric drives provides growth opportunities for manufacturers, though the low-tech segment of the market has “stiff competition.”
To read the full report, go to www.frost.com.