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National Projects to Provide Sustainable Growth Opportunities for Integral Horsepower Motors in China Finds Frost & Sullivan - Integrated solutions will be the next step to speed up market development, finds Frost & Sullivan - Motors.Frost.com
National Projects to Provide Sustainable Growth Opportunities for Integral Horsepower Motors in China Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Shanghai, China, 2014/12/04 - Integrated solutions will be the next step to speed up market development, finds Frost & Sullivan - Motors.Frost.com.

   
 
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Infrastructure modernization across industries in China is quickening the shift to automation, in turn spurring the adoption of integral horsepower motors (IHP). Meanwhile, upcoming motor energy efficiency regulations and the need to reduce operational costs are fueling the development of energy-efficient IHP motors, stimulating improvements in design, manufacturing and processing.

New analysis from Frost & Sullivan, Chinese Integral Horsepower Motor Market, finds that the market earned revenues of $3.69 billion in 2013 and estimates this to reach $5.59 billion in 2020. Highest demand will emerge from the heating, ventilation, air conditioning and refrigeration (HVAC-R) industry. Modernization of old industrial machinery, coupled with the construction of new office and industrial buildings will contribute to this demand.

“Targeted industrial investment as part of the government’s national plan is likely to boost the use of IHP motors in certain industries,” said Frost & Sullivan Industrial Automation and Process Control Research Analyst Zi Ning Chong. “According to end-user project plans, approximately 30 to 50 large national projects will be deployed by 2015 in the oil and gas, power generation and chemical sectors, accelerating the sale of IHP motors.”

On the other hand, the metals and mining as well as cement and steel industries suffer from overcapacity, curbing new IHP motor purchases. Increasing pricing pressures also restrain market development. Pricing pressures are caused by small and medium manufacturers that, in order to stay competitive, replicate the technologies of bigger local and multinational companies at lower costs.

Rising labor wages and the lack of personnel are diminishing China’s place as the ‘world’s factory’, further limiting market scope. Rising production costs too are forcing many companies to exit China and seek feasible investment locations elsewhere.

“Competitive pricing, reliability and value-added services are the key to product differentiation in this market,” opined Chong. “Offering one-stop-shop, integrated solutions will also help manufacturers broaden their portfolio to include application-specific products and emerge successful in the Chinese IHP market.”

Chinese Integral Horsepower Motor Market is part of the Power Transmission (motors.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Global Industrial Bearings and Couplings Market, Global Motor Control Centers Market, and Global Welding Robotics Fact Book. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
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Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

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Chinese Integral Horsepower Motor Market / NE5A-17

 
 
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National Projects to Provide Sustainable Growth Opportunities for Integral Horsepower Motors in China Finds Frost & Sullivan

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