The latest survey of the Chinese AC drives market predicts that it will grow by at least 10% a year over the coming five years -- an even faster rate that the 6.3% suggested by a rival report earlier this year.

The new study, by the ARC Advisory Group, splits the market into two overlapping segments, covered by separate reports*:

• the low-power (sub-200kW) AC drives market which, it says, will grow at a CAGR (compounded annual growth rate) of 10%, from $400m last year to more than $600m by 2008; and

• the high-power sector (41kW and above) with a predicted CAGR of 11.1%, taking its value from $225m last year to more than $389m by 2008.

The leading use for low-power drives in China is in building automation, but Chinese manufacturers are also having to adopt modern manufacturing technologies to maintain consistency in their products, ARC reports.

The large-scale investments in the Chinese infrastructure and manufacturing are also driving the market for larger AC drives. The report warns that drives suppliers could face a serious challenge if they are unable to recruit personnel with sufficient skills to meet the demands of the drives market, both before and after sales.

* Each report costs $2,900. Details from www.arcweb.com.