With the Chinese government’s emphasis on the application of green
technologies, manufacturing industries are realizing the need for
energy-efficient electric drives. This is significantly enhancing the
growth of the electric drives market in China.

New analysis from Frost and Sullivan (www.frost.com), Chinese Electric
Drives Market Forecasts, reveals that the market accrued revenues of
$1,164.2 million in 2005 and estimates this to reach $2,458.1 million
in 2012.

Several top participants are seeking to increase consumer awareness on
the energy efficiency of electric drives. Domestic manufacturers and
companies can benefit substantially by adopting promotional
strategies, such as campaigns and trade fairs, to present the benefits
of their products.

The rapid industrialization and automation of manufacturing industries
such as power, chemicals, textiles and food industries, are also
strengthening the demand for electric drives. Foundation industries
such as petrochemicals, fine chemicals and pharmaceuticals are the
fastest growing sectors, and are likely to contribute substantially
toward the growth of the electric drives market.

The Chinese government has invested heavily in establishing these
industries. As the country is beginning to compete globally, the focus
of these investments is likely to shift to process improvement and
efficiency.

“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,” observes Frost & Sullivan Research Analyst Kasandra
Luo. “The application of electric drives can receive a boost as modern
management and manufacturing techniques are introduced.”

Electric drives are evolving in functionality and design, with an
increase in foreign and domestic investments for its development.
Alternating current (AC) electric drives are becoming more
sophisticated, offering enhanced functionality, control and precision,
leading to the continuous growth of this segment.

Being less expensive than direct current (DC) standard electric
drives, AC drives enjoy more popularity in the market. Consumers are
also reluctant to buy DC drives in case they are eventually forced to
switch to AC technologies. This is resulting in greater sales of AC
products.

The increasing number of applications requiring electric drives is
presenting numerous growth opportunities to manufacturers. However,
there is stiff competition especially in the low-tech end of the
electric drives market.

Improved product sophistication is enabling companies to enter
high-power market segments. Participants can stay competitive in the
market by enhancing the quality of their products, services and
distribution channels.

“Domestic producers can build their sales network with more agents,
distributors and original equipment manufacturers (OEMs), to keep
abreast leading global competitors,” notes Luo. “This can help expand
their business not only by retail sales, but also industry sales.”