Market Trends of China AC Motor Industry
Induction AC Motors Demand is Increasing
- An industrial induction AC motor operates on the principle of electromagnetic induction. The magnetic field generated by the stator produces an electric current in the rotor. This type of motor is known for its reliability, low cost, and ability to provide high starting torque.
- An industrial single-phase induction AC motor is commonly used in industrial applications. It is designed to operate on a single-phase power supply typically found in small-scale settings.
- The continuous investment in electricity generation that has driven the adoption of induction motors in the power sector is required to meet the rising demand for energy to support China's AC motor development.
- China's industrial production has grown continuously in recent years and is expected to give rise to new projects and industrial expansion, which could boost demand for induction motors. According to stats published by the National Bureau of Statistics of China, in 2023, China's value-added industrial output increased by about 4.6%compared to the previous year.
- Moreover, automobile manufacturers are focusing on investing in China, which is expected to boost the demand for induction motors during the forecast period. For instance, in July 2023, Volkswagen announced it would invest USD 700 million in Chinese EV maker Xpeng to boost sluggish sales. The companies will join forces to develop two mid-sized VW-branded EVs for the Chinese market, to be rolled out in 2026.
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Discrete Industries Hold a Significant Market Share
- Discrete industries cover manufacturing processes like automotive, electronics, and machinery. AC motors find their applications in the manufacture of electronics, ranging from designing and maintaining simple electrical fuses to complicated programmable logic controllers (PLCs), solid-state devices, and motor drives, which can handle the automation of all types of modern-day electrical and mechanical industrial processes.
- The Chinese government is increasing its defense spending, which will further increase the production of defense machines, weapons, aircraft, etc., creating a high demand for AC motors. For instance, in March 2023, the government of China announced a 7.2% increase in its defense budget for the coming year, up slightly from last year's 7.1% rate of increase. China also has a huge stockpile of missiles, as well as stealth aircraft, bombers capable of carrying nuclear weapons, advanced surface ships, and nuclear submarines.
- Also, permanent magnet AC motors are the most commonly used electric motors in the automotive industry, especially after the evolution of EVs, owing to their high power density, torque density, and efficiency. There are several reasons why these engines are still the dominant technology in 2024. The first is dominance in China's domestic EV market, where the Chinese EV market is one of the most significant in the world.
- Moreover, several electronics players focus on expanding their presence in the country, thus supporting market growth. For instance, in September 2023, Delta Electronics announced plans to invest approximately CNY 1.45 billion (USD 199.2 million) to expand its industrial base in Chongqing, China, to include a new facility.
- Also, according to semiconductors.org, semiconductor sales in China reached USD 14.76 billion in January 2024. The figure for January 2023 represents a significant increase from January 2022, when sales in China totaled USD 11.66 billion.
