The coming ten years are a favorable period for technological energy saving. It covers waste heat recovery, energy-efficient lighting and transport, as well as modernization of the electric power industry, steel and non-ferrous metallurgy, oil and petrochemical, chemical and building materials industries. The three main areas are industry, buildings and electromechanical equipment. Energy saving of electric motors is a key element of industrial energy saving.
Various motors consume 60–70% of China's industrial electricity, so the potential for savings is high. However, competition in this area is particularly intense. The research highlights numerous areas and listed companies: power plant air cooling, plant secondary equipment, carbon capture and storage, frequency converters, energy-efficient transformers, high-efficiency motors, power electronics and components.
The frequency converter market deserves special attention. According to research, the potential market for high-voltage converters reaches 60 billion yuan. Hiconics, Rongxin, Zhiguang Electric and Jinzi Tianzheng are in the high-demand segment. Jiuzhou Electric and Power Source offer complete lines of high, medium and low voltage. Clou Electronics also has a presence in these three ranges, although converter revenue makes up a small portion of its revenue.
An electrical industry analyst at a brokerage firm noted, “We have a positive view of Jiuzhou Electric and Hiconics. The former has a full line of high, medium and low voltage converters; in 2009, their revenue was 183 million yuan, or 48.59% of core revenue. The second is an industry leader and standard contributor offering universal 6kV and 10kV high voltage converters, high voltage vector converters and synchronous machine converters.”
High-efficiency engines benefit from incentive policies. According to a study by Guosen Securities, their cost is higher than traditional ones, but budget subsidies reduce the difference, which should significantly increase market share.
Leading high-efficiency motor companies include Wolong Electric, DunAn Environment and Topband.
The same analyst noted the need to keep an eye on leaders with distinct technological advantages. For example, Wolong Electric is a leader in the field of small and special motors and has technologies of servo control and frequency drive, permanent magnet synchronous motors, high voltage traction transformers, long linear motor stators and their windings. The company's powerful high-voltage converters are already being mass-produced. However, plans to create a high-capacity lithium-ion battery project may carry risks.
Competition in electric motor energy conservation remains particularly intense compared to many other energy-saving technologies.
For example, Rongxin is a leading manufacturer of high-power power electronics for energy saving. The main sources of income are high-voltage converters and the design and production of high-voltage static variable power compensators SVC. In the structure of orders in the first half of 2010, SVC's share was about 47%, but competition in this market has already intensified.
Many companies are developing SVC. Electricity networks need large volumes, and Rongxin’s competitor in this segment is the Electric Power Institute. In the railway industry, the main competitors are CSR Zhuzhou Times and Sieyuan Electric. The saturation of the SVC metallurgical market exceeds approximately 70%, with the number of participants being less than ten. Wind power requires less power and uses different compensation methods, so competition is strong. According to the analyst, the future expansion of Rongxin's SVC business largely depends on demand outside the power grid and metallurgy.
Therefore, China's energy-saving electric motor market is highly competitive and its prospects are noteworthy.