Analysis of the current status and future development trends of the industrial motor industry in 202-Xinda Motor- electric motors and EV accessories supplier|INDEX--

Analysis of the current status and future development trends of the industrial motor industry in 202

Date：2024-12-03　　　Author：XINDA MOTOR

Introduction: As one of the core power equipment in modern manufacturing, the industrial motor industry has broad development prospects and huge market potential.With the continuous advancement of technology and the continuous growth of market demand, the industrial motor industry will usher in more development opportunities and challenges.The following are some of the views of China Research Network through big data analysis, which may have certain reference value for your business.

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Industrial Motor Industry Segments

Industrial motors can be divided into DC motors, AC motors, permanent magnet synchronous motors, switched reluctance motors and asynchronous motors according to their performance and structure. Among them, AC motors and DC motors are the two main types. AC motors realize the conversion of mechanical energy and AC electric energy, and are widely used, accounting for 54.6% of China's industrial motor market; DC motors can realize the mutual conversion of DC electric energy and mechanical energy, converting electrical energy into mechanical energy in motors and converting mechanical energy into electrical energy in generators, accounting for 35.74% of China's industrial motor market.

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Industrial Motor Industry Chain Structure

The industrial motor industry chain mainly includes upstream raw materials and parts supply, midstream industrial motor processing and manufacturing, and downstream application areas. Upstream raw materials include electrolytic copper, alloy steel, silicon steel, insulation materials, etc., and parts include stators, rotors, windings, shells, etc.; midstream is the processing and manufacturing of industrial motors, including AC motors, DC motors, etc.; downstream is water equipment, comprehensive power equipment, wind power equipment, thermal power equipment, household equipment and other application areas.

The output and price of raw materials such as electrolytic copper, steel and insulation materials directly affect the production cost and manufacturing quality of industrial motors. In recent years, with the expansion of production capacity, the domestic electrolytic copper output has continued to rise, reaching 12.988 million tons in 2023, with an average annual compound growth rate of 7.34% in the past five years; steel production is also growing, reaching 1.363 billion tons in 2023, an increase of 1.67% over the previous year; the output of insulation materials products has also continued to grow, reaching about 2.5451 million tons in 2023, with an average annual compound growth rate of 4.16% in the past five years.

Development Status of Industrial Motor Industry

Market situation: In the context of reducing energy consumption globally, the European Union and countries and regions such as France and Germany have introduced high-efficiency energy-saving policies to accelerate the development of the global industrial motor industry. In 2022, the global industrial motor output was 1257.15 million kilowatts, and it is expected to reach 1583.65 million kilowatts in 2025. The scale of China's industrial motor market is also huge and growing. In 2023, sales revenue reached about 372 billion yuan, with an average annual compound growth rate of 1.56% in the past five years. It is expected that sales revenue will reach 388.03 billion yuan in 2024.

Sales: In recent years, the total import and export volume of industrial motors in China has fluctuated. In 2023, the total import and export volume of motors in China was US$18.65 billion, a year-on-year decrease of 7.5%, of which imports were US$3.99 billion and exports were US$14.66 billion, a year-on-year decrease of 7.3%. The year-on-year growth rate of exports was negative for the first time, affected by the international situation, market demand, transportation costs and exchange rates. However, forecasts show that the export demand for new motors will increase in 2024, and the total export volume is expected to exceed US$15 billion.

Output: Affected by changes in market demand, fluctuations in raw material supply and the macroeconomic environment, China's AC motor output will decline in 2023 to 368 million kilowatts, a year-on-year decrease of 14.25%. It is expected to rebound to 392 million kilowatts in 2024.

Market size: The industrial motor market is of considerable size worldwide and continues to grow. Data shows that the global motor market size will be approximately US$16 billion in 2023 and is expected to reach US$21 billion by 2025, with a compound annual growth rate (CAGR) of approximately 4.8%. In China, the motor market size will be approximately RMB 22.345 billion in 2022, accounting for 28% of the global market size, and will reach RMB 50 billion by the end of 2023. With the continuous improvement of industrial motors in terms of energy efficiency, performance, reliability, etc., the demand for high-efficiency and energy-saving motors in various fields continues to grow, and the scale of China's industrial motor market has grown steadily.

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National and local policy analysis

In recent years, China has issued a number of policies to promote the healthy development and innovation of the industrial motor industry, including the "Notice on Organizing and Carrying out Industrial Energy Conservation Supervision in 2024" , which provides the industry with broad market prospects and a good environment. In addition, the "14th Five-Year Plan for Intelligent Manufacturing Development" lists motor production equipment as an emerging industry, aiming to promote the application of intelligent and energy-saving motors. Energy conservation, emission reduction and new energy policies have also expanded the application market of motors in the field of new energy.

At the local level, local governments are also actively promoting the development of the industrial motor industry by providing tax incentives, financial support and other measures to encourage companies to increase R&D investment, improve product quality and technical level, and promote industrial upgrading and transformation.

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Industrial Motor Industry Competition Analysis

Advantages: The motor industry has continued to improve in terms of energy efficiency, performance, and reliability, which has improved overall performance, reduced operating costs, and met the industrial demand for high-efficiency and energy-saving motors. The national and local governments continue to introduce policies to support the development of the motor industry, especially in terms of high-efficiency and energy-saving motors, which has promoted the rapid growth of the industry.

With the in-depth development of industrial automation and intelligent manufacturing, the application areas of industrial motors have further expanded, including petroleum, bulk chemicals, food, coal products, primary metals, papermaking and many other fields.

Competitors: Foreign brands such as Siemens, ABB, Yaskawa, etc. occupy the high-end market and have an advantage with their advanced technology and brand influence. Domestic companies such as Huichuan and Wolong Electric Drive have gradually entered the second echelon of the industry by focusing on different fields and opening up new incremental markets. However, the production capacity of most domestic industrial motor companies is still mainly concentrated in the low-end market field dominated by general small and medium-sized industrial motors, and the added value of products is relatively low.

Related companies: (1) Jiadian shares' products are used in important industries such as machinery and coal, petrochemicals, lifting and metallurgy. (2) Wolong Electric Drive achieved the highest operating income, reaching 15.567 billion yuan, with motor manufacturing contributing 12.756 billion yuan in revenue and a gross profit margin of 21.65%. (3) Xiangdian shares actively deployed domestic and foreign markets and achieved rapid business growth.

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Analysis of key enterprises

Wolong Electric Drive, Dayang Electric, Jiadian Shares and others have become industry leaders with their strong R&D, production technology and market experience. These companies have a wide range of products to meet market demand, and actively expand domestic and foreign markets to achieve rapid business growth. For example, in the first quarter of 2024, Wolong Electric Drive achieved operating income of 3.741 billion yuan and net profit attributable to the parent of 223 million yuan. Although it decreased year-on-year, it still demonstrated its market position and competitiveness.

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Industrial motor industry development trend forecast

High efficiency and energy saving: With the accelerated advancement of green and low-carbon transformation, high efficiency and energy-saving motors will become an important direction of market development.

Intelligence: Intelligent motors will have higher precision, more flexible control methods and stronger data processing capabilities to meet the needs of industrial automation and intelligent manufacturing.

Domestic substitution: Domestic enterprises will gradually break the monopoly of foreign brands in the high-end market and enhance the market competitiveness of local brands.

Industrial Motor Industry Prospects

Market demand and trends: Industrial automation and intelligent manufacturing: driving the continued growth of industrial motor market demand.

New energy and electric vehicles: The demand for high-performance motors has shown explosive growth, providing a new growth point for the motor market.

Competitors and market share in the market: Foreign brands occupy the high-end market and have a higher market share. Domestic enterprises have a higher market share in the low-end market, but the degree of localization in the high-end market is low, and there is still much room for improvement.

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Current problems and pain points in the industrial motor industry

Technical bottleneck: The homogeneity of motor development is quite obvious, and most of the innovations are small breakthroughs in lightweighting, energy saving, etc., lacking disruptive innovation.

High-end market relies on imports: The level of localization in the domestic high-end industrial motor market is relatively low, and local companies still need to speed up the improvement of their strength.

Fierce competition in the low-end market: The production capacity of most domestic industrial motor companies is still mainly concentrated in the low-end market field dominated by general small and medium-sized industrial motors. The product added value is low, resulting in fierce market competition and meager profits.

Analysis of the current status and future development trends of the industrial motor industry in 202

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