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Chinese servo systems market zooms towards $1bn

10 July, 2007

Sales of servo motors and drives in China soared by an estimated 26.8% last year, and will continue to grow rapidly, expanding from $362m in 2006 to reach $954m by 2011. These figures come from a new report, published by IMS Research, which predicts that Chinese servo system revenues will expand at a CAGR (compounded annual growth rate) of more than 20% over the five-year study period.

Servo systems account for more than 80% of the revenues from China’s motion controls market. Stepper system sales are forecast to grow at a more modest 10% CAGR in terms of revenue over the study period.

Although the servo market is enjoying rapid growth, the competitive environment is evolving equally quickly. The existing market - in which Western, Japanese and local suppliers focus primarily on dedicated sectors and seldom compete directly - is changing as a result of Taiwanese and Korean suppliers entering the market in recent years. Local Chinese suppliers are now facing more pricing pressure from relatively low-priced Taiwanese and Korean products.

"Although the competitive environment of the Chinese servo systems market has changed dramatically in recent years," says IMS market analyst, Reggie Li, "Chinese suppliers still have potential to increase their market shares quickly in next five years.

"Chinese suppliers are getting mature, both in technology and sales channel development," he adds. "Government aid through R&D funds also helps the Chinese companies to develop more advanced products which will help these companies compete on something other than price."




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