Market analysis of China's electric machinery industry

National Bureau of Statistics figures show that in December 2004, there were 1,167 motor manufacturing enterprises in China, with a total of 388,282 employees and total assets of nearly 97.2 billion yuan. In 2004, the total industrial output value of the motor industry was 99.3 billion yuan, product sales revenue was 93.8 billion yuan, and total profit was 4.91 billion yuan. Currently, China's production of micro-special motors accounts for more than 60% of the world's motor market.

Prospect

With the continuous improvement of the level of production modernization and the increasing consumption of household appliances, automobiles, and other products, the market demand for motors will also increase. It is estimated that by 2010, the national power generation capacity will reach about 660 million kilowatts, with an average annual increase of more than 37 million kilowatts, an average annual growth of about 7.8%. The demand for electric motors is positively correlated with the demand for power generation equipment at a ratio of 1:3.51. Based on this analysis, the effective demand for large, medium, and small AC motor products in the domestic market will maintain stable growth.

Opportunity

The market demand for motor products is very broad. The accelerated development of the Three Gorges Project, the promotion of the national "West-to-East Electricity Transmission" project, and the development of the western region have provided ample market space for the industry. Because small and medium-sized electric motors are labor-intensive and material-intensive products, developed countries stopped producing general-purpose AC motors years ago and switched to foreign procurement or OEM processing, thus providing good opportunities for the export of China's small and medium-sized electric motors.

Advantages

The motor industry is a labor-intensive industry, and China has unique advantages in developing the motor manufacturing industry; national support for the motor industry will continue to strengthen; as the market awareness of domestic enterprises gradually increases, the industry's competitiveness will continue to strengthen.

Weaknesses

The overall manufacturing scale of the motor industry is relatively small, and some large projects still rely on imports for their products; the technical level of micro-motor products is generally not high.

Risks

Domestic motor industry enterprises have fierce price competition, and the industry's development still needs continuous integration and improvement. The accelerated entry of foreign excellent enterprises will squeeze a certain share of the domestic market.