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.

03/30/2004


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
jmontague@reedbusiness.com





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