China drives market growth
21 Apr 2006
Standard and premium AC drives generated the most revenue growth in 2005, particularly in the larger power ranges, said IMS. These drives, it found, went mainly into construction-related sectors involved in building China¹s manufacturing and logistical infrastructure.
China¹s strong economic performance has attracted virtually every major multinational motor drives company to enter the Chinese market, according to IMS analyst Steve Lam, who is based in IMS' office in Austin, Texas.
"These global companies have brought with them competitive advantages such as more reliable and technically superior motor drives, and have enabled them to dominate this market," commented Lam.
However, the IMS expert added that "these drives come with a higher price premium, and have recently allowed indigenous companies to gain market share by competing in their own niche economy drives market. "
Rising consumer income in China is, meanwhile, driving growth in the lower power drive segment, continued IMS. Consumers are increasingly able to afford packaged consumer goods, resulting in increased use of motor drives in food & beverage and packaging machinery applications, it noted.
IMS supplies market research and consultancy services on global electronics markets. The company has headquarters in Wellingborough, UK, and an office in Austin, Texas.
