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.”
