Market Analysis of China's Electric Motor Industry
Release date:
2025-08-01
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Abstract
Statistics from the National Bureau of Statistics show that in December 2004, China's motor manufacturing industry had a total of 1,167 production enterprises, employing 388,282 people and boasting total assets nearing 97.2 billion yuan. Throughout 2004, the industry achieved an industrial output value of 99.3 billion yuan, with product sales revenue reaching 93.8 billion yuan and total profits amounting to 4.91 billion yuan. Currently, micro and special motors produced in China already account for more than 60% of the global motor market.
Prospects
As the pace of production modernization continues to accelerate and consumer demand for household appliances, automobiles, and other products steadily rises, the market demand for electric motors will also grow significantly. By 2010, the nation's total installed power generation capacity is expected to reach approximately 660 million kilowatts, with an average annual addition of over 37 million kilowatts—representing an annual growth rate of around 7.8%. Given that motor demand maintains a direct proportional relationship of 1:3.51 with the demand for power-generation equipment, analysis suggests that the effective market demand for large, medium-sized, and small-to-medium-sized AC motor products in China will continue to expand steadily.
Opportunity
The market demand for motor products is exceptionally broad. The accelerated pace of the Three Gorges Project construction, coupled with the advancement of the national "West-to-East Power Transmission" initiative and the broader Western Development Strategy, has created ample market opportunities for the industry. Moreover, since small- and medium-sized motors are labor- and material-intensive products, developed countries stopped manufacturing standard AC motors several years ago, opting instead to source them from abroad or outsource production under their own brands. This shift presents a golden opportunity for China's exports of small- and medium-sized motors.
Advantages
The motor industry is a labor-intensive sector, and China enjoys inherent advantages in developing its motor manufacturing industry. The government’s support for the motor industry will continue to strengthen. Meanwhile, as domestic enterprises gradually enhance their market awareness, the industry’s competitiveness will steadily improve.
Vulnerable
The overall manufacturing scale of the motor industry remains relatively small, and some large-scale projects still rely on imports for their required products. Meanwhile, the technological level of products in the micro-motor industry generally remains low.
Risk
The domestic electric motor industry faces fierce price competition, and the sector’s development still requires ongoing consolidation and improvement. Meanwhile, the accelerated entry of leading international companies is set to erode a portion of the domestic market share.
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