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

The China DC Motor Market size is estimated at USD 84.78 million in 2024, and is expected to decline to USD 82.96 million by 2029.

Key Highlights

• The DC motor market in China has experienced significant growth over the past few decades, driven by the country's rapid industrialization and the increasing adoption of automation across various sectors. As the world's largest manufacturing hub, China has a substantial demand for DC motors, which are integral components in numerous applications, including automotive, consumer electronics, and industrial machinery. This is evident from the fact that China has the world's second-largest GDP, to which manufacturing contributes 28%, as per data provided by the World Bank.
• DC motors are extensively used in machinery and automation processes in the industrial sector due to their efficiency, reliability, and precise control capabilities. The ongoing automation wave in China's manufacturing landscape further propels the demand for DC motors, particularly in applications requiring variable speed and torque. According to IFR, Asia is leading the way in manufacturing automation, with China being a major driver and accounting for 50% of the share in terms of robot installation in 2022.
• There is an ongoing transition from DC motors to AC motors, driven by significant advancements in AC motor technology, resulting in increased adoption across various industries. The development of sophisticated power electronics has allowed AC motors to achieve superior performance characteristics. AC motors offer enhanced efficiency, reliability, and ease of integration with modern control systems. These advantages make AC motors increasingly attractive for industrial applications where they are widely used. Additionally, the automotive industry's shift toward electric vehicles (EVs) heavily favors AC motors due to their efficiency, better performance, and low maintenance.
• Despite the growing dominance of AC motors, there are still numerous applications where DC motors continue to be widely used due to their inherent advantages. Small-scale applications, such as consumer electronics, toys, and handheld devices, often rely on brushed DC motors for their simplicity and cost-effectiveness. Certain industrial machinery that demand high starting torque and easy speed variation still employ DC motors, particularly in settings where existing infrastructure and equipment are designed around DC motor characteristics.
• DC motors are also favored in robotics and automation for tasks that require precise positioning and variable speed control. These tasks often utilize brushless DC motors because of their efficiency and reduced maintenance compared to traditional brushed DC motors. Technological advancements are playing a pivotal role in shaping the DC motor market. Innovations aimed at enhancing energy efficiency, reducing size, and improving performance are attracting investments and fostering new product developments. Brushless motors are gaining popularity due to their higher efficiency and longer lifespan.
• These advancements are also complemented by government policies encouraging technological upgrades and energy-efficient solutions. According to an action plan jointly published by seven government departments, including the Ministry of Industry and Information Technology, the country will boost industrial equipment investment by more than 25% from 2023 to 2027.

China DC Motor Market Trends

The Automotive Segment to Witness Growth

• The automotive industry in China is poised to have a significant impact on the DC motor market, driven by its rapid growth and transformation. China, the world's largest automotive market, is experiencing an accelerated shift toward electric vehicles (EVs) and hybrid electric vehicles (HEVs), which extensively use DC motors for their operations.
• The number of electric car registrations reached 8.1 million in 2023, representing an increase of 35% compared to 2022. This transition is fueled by government policies promoting green energy and reducing carbon emissions, technological advancements, and increasing consumer demand for eco-friendly transportation solutions.
• The push toward autonomous driving technology further amplified the importance of DC motors in the automotive industry. Autonomous vehicles require precise control and high reliability, attributes that DC motors provide. These motors are used in various autonomous driving systems, including advanced driver assistance systems (ADAS), steering mechanisms, and braking systems.
• In May 2024, it was announced that Tesla is in the early stages of establishing a data center in China to train self-driving AI. The tech ecosystem in China is ripe for helping advance self-driving cars. As China aims to be a leader in autonomous vehicle technology, the integration of DC motors in these systems will contribute to market growth. Technological advancements in the automotive industry are also fueling the demand for advanced DC motors.
• Innovations aimed at enhancing the efficiency, durability, and performance of electric motors are gaining traction. In 2023, Chinese firms invested billions of dollars in the market, and these investments are shaping it. While challenges exist in terms of its geopolitical relation with Western counterparts and trade restrictions, the market's resilience and the continuous evolution of automotive technologies promise a vibrant future for DC motors in China.

The Water and Wastewater Industry to Drive the Market Growth

• The Chinese water and wastewater industry is undergoing a significant transformation spurred by the nation's swift urbanization, industrial growth, and heightened environmental consciousness. As one of the world's most populous nations, China grapples with immense pressure on its water resources, necessitating a strategic approach to managing both water supply and wastewater. This intensified focus on water management is reshaping the landscape for DC motors.
• Despite accounting for 21% of the global population, China only possesses 6% of the world's freshwater, yet it faces the largest volume of sewage discharge. The country's rapid urbanization and industrial expansion have posed substantial challenges to its municipal wastewater treatment, as the volume of wastewater directly correlates with urbanization rates. China's Ministry of Ecology and Environment projects that by 2025, rural life sewage treatment rates will hit 40%.
• Recognizing the urgency, China has significantly ramped up its investments in water infrastructure, spanning treatment facilities, pipelines, and reservoirs. As highlighted by the Ministry of Water Resources, these investments peaked at a record USD 167 billion in 2023.
• Looking ahead to 2025, China is set to embark on a series of major water network projects, with a focus on bolstering weak links in water resource allocation, urban and rural water supply, flood control, drainage, ecological protection, and the implementation of smart water networks. DC motors, pivotal in the water and wastewater industry, find widespread application in pumps, mixers, blowers, and other equipment crucial for processes like aeration and filtration.
• With the rising demand for efficient water treatment solutions, the need for high-performance DC motors capable of meeting stringent industry standards is also rising. In a bid to address water scarcity, China has set ambitious targets, aiming to raise the utilization rate of recycled water in water-stressed cities to over 25% by 2025. Additionally, the nation plans to establish 100 green, low-carbon benchmark sewage treatment plants by the same year.

China DC Motor Industry Overview

The DC motor market in China is highly competitive and is characterized by numerous domestic and international players such as Siemens and ABB. The market competition is fueled by the rapid pace of technological advancements and the push for energy-efficient solutions, combined with significant demand from key sectors like automotive and industrial automation. Companies are continuously innovating and expanding their product offerings to maintain their market position and cater to evolving consumer needs.

• In September 2023, Allient Inc. announced the acquisition of Sierramotion Inc., a privately owned company specializing in designing and engineering turnkey motion components and mechatronic solutions for various precision applications, including medical, robotic, defense, industrial, and semiconductor sectors. This acquisition will enhance Allient's integrated motion solutions strategy and expand its reach into targeted end markets.

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