CHINA: Micro motor market is booming

Mainland China is the largest production base for motors in the world. In 2006, China produced 5 billion motors, which is more than 60 percent of the total global production (data from the Micro Motor Branch of the China Electronic Components Association or CECA). Large-scale multinational companies, such as Panasonic, Sanyo and Mabuchi, all have motor factories in China.



Most of the motor manufactures are located in the coastal cities of Guangdong, Zhejiang and Jiangsu provinces in the Yangtze River Delta and Pearl River Delta. With well-established international trade infrastructureS and booming financial and service economies, these areas continue to draw in more foreign capital investments.



BIG EXPORTER

Both local and export demand for motors is high. In 2006, China’s motor exports reached $2 billion.



More than 2,000 types of motors are being manufactured in large scales, including micro/miniature motors, stepping motors, servo motors, synchronous motors and brushless DC motors. The key market drivers are automotive electronics, home appliances, telecom devices, and PCs and peripherals.

Zhongshan Broad-ocean Motor Co. is one of the major AC/DC motor exporters in the country. The company’s products are widely used in home appliances, automotive, auto cycle, bread machine, and auto control industries. Its annual AC/DC motor production capacity is over 30 million units. Above 45 percent of their products are exported to 20 countries, particularly in North America and Europe.



Ningbo Yinzhou Lixing Micro Motor Co. is another major local motor provider. The company’s main products include shaded pole motor, hysteresls synchronous motor, and DC slowdown motor. These products are widely used in icebox, auto door and windows, home appliances, etc. Like Zhongshan, Ningbo’s products are exported mainly to North America and Europe.



One of Ningbo’s latest product offering is the YJF-4 shaded pole motor, which is available in 5W, 7W, 10W, 16W, 25W and 34W options. Meanwhile, its DC slowdown motor has many advantages, such as low profile, low noise and longer using life.



LOW-END TO MIDRANGE

According to the Micro Motor Branch of CECA, majority of motor manufacturers in mainland China will continue to cater to the low-end and midrange markets. On the other hand, Taiwan and Hong Kong motor suppliers will sustain their lead in the midrange and high-end markets.



China still depends on imports when it comes to demand for ultra-precision and high-technology micro motors such as precision brushless motor, high-speed synchronization motors, high-precision step motors, slice winding brushless motors and high-performance servo motors, etc.



On the other hand, many foreign motor manufacturers -- including those from Japan, Korea, North America and Germany – have built factories in mainland China. Mabuchi is the biggest micro motor manufacturer in the world, and its factories are spread all over mainland China. It also has branches in Taiwan, Malaysia and Vietnam. The company is about 50 percent of the world’s total production output.



TRENDS IN PRICE, DEMAND

There is an overall high demand for micro motors today. This demand is driven by electronic information and communication equipment, which are among the fastest-growing markets. The annual average growth rates are 20 percent to 30 percent, respectively.



“There are many technology challenges in the micro motor fields,” said Mr. Chen, secretary general of CECA’s Micro Motor Branch Association. “We see the need for Chinese manufacturers to augment their technologies.”



R&D efforts for motor production are primarily directed toward miniaturization, lower power consumption, higher efficiency, low noise and low vibration, in addition to value-added offerings such as dustproof caps and automated control functions.



To control product quality and shorten delivery lead times, companies must continue to manufacture the key components needed for their own motor production. These providers use mostly automated, high-precision and high-speed machines.



Meanwhile, motor prices are expected to increase by 5 percent to 10 percent in the next six to 12 months due to the rising cost of raw materials and the increase in manufacturing costs brought on by RoHS compliance.



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