China AC Motor - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The China AC Motor Market size is estimated at USD 2.89 billion in 2024, and is expected to reach USD 10 billion by 2029, growing at a CAGR of 5.29% during the forecast period (2024-2029).

Key Highlights

• The Chinese manufacturing sector has a significant role in China's rapidly transforming economy, witnessing the rapid evolution of the Internet of Things as Industrial 4.0 gains momentum worldwide. This large-scale transformation has put the country in one of the leading positions in the AC motor market.
• Also, in October 2023, the Government of China announced that it would remove all restrictions on foreign investment access in the manufacturing sector. This move further demonstrates China's determination to continue promoting high-quality opening up with specific measures, which will also enhance the development of the domestic manufacturing sector, thus supporting market growth.
• China has been focusing on high-end manufacturing, power utilities, and oil and gas industries, boosting the usage of AC motors. For instance, the Chinese government's ambitious 'Made in China 2025' initiative, partially inspired by Germany for Industry 4.0, aims to boost the country's competitiveness in the manufacturing sector.
• Moreover, China has a large young population and a strong export sector, with a potential consumer base that far outstrips most other nations in the developed and developing world. Rising urbanization and a rapidly growing young population drive changes in consumer demand in the food and beverage industry. Such factors are likely to drive the growth of the studied market in China significantly.
• Fierce competition among various food companies also forces the food and beverage companies to introduce world-class manufacturing practices. This, in turn, also results in the increased adoption of AC motors.
• However, various barriers are hampering the adoption of AC motors. The significant costs for the motors are the energy, maintenance, and initial purchase costs.

China AC Motor Market Trends

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.

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.

China AC Motor Industry Overview

The Chinese AC motor market is competitive with various large, medium, and small players. The China AC motors industry players are introducing new innovative products to cater to the growing consumer demands. Major players in the market include Siemens AG, Rockwell Automation Inc., Johnson Electric, Nidec Corporation, and ABB Limited. Technological advances in various industries, including healthcare, energy, and infrastructure, will boost the market growth.

• July 2023: Siemens AG announced the launch of Innomotics, a new leading motors and large drives company. Under this brand, the company will combine its business activities in geared motors, medium-voltage converters, low- to high-voltage motors, and motor spindles. The portfolio includes a digitalization portfolio, innovative solutions, and broad service offerings.
• June 2023: ABB Ltd announced the introduction of its latest generation AMI 5800 NEMA modular induction motor that offers exceptional reliability and energy efficiency in demanding applications such as extruders, fans, compressors, pumps, extruders, crushers, and conveyors. The AMI 5800 motor is an actual NEMA design that builds on ABB's technology leadership and meets both mechanical mounting standards and electrical performance requirements.

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