The Greater China region remains the largest production hub for DC motors, accounting for more than half of the world's output, according to the China Electronic Components Association. Major foreign manufacturers of DC motors based in mainland China, Taiwan and Hong Kong contribute in large measure to the increasing annual output of the region. Automotive electronics, home appliances, telecom devices, and PCs and peripherals are key demand drivers. However, industrial equipment, as well as emerging applications in the do-it-yourself (DIY) and robotic segments are forecast to add to the growing demand.
In 2005, the 41 companies surveyed in this report produced about 698.6 million DC motor units, accounting for 26 percent of an estimated 2.7 billion units produced in mainland China in the same year. These companies expect production to rise at an average rate of 30 percent in 2006 to about 903 million units. Of the more than 1,600 DC motor makers in the Greater China region, this report covered 28 makers from mainland China, nine from Taiwan and four from Hong Kong. Aside from basic DC motors, most of these suppliers also manufacture geared, micro/miniature, stepping, servo, synchronous and brushless DC motors.
The following are some of the key findings in the report:
• Prices will 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.
• Most of the mainland companies will continue catering to the low-end and midrange markets, while Taiwan and Hong Kong suppliers sustain the manufacture of DC motors targeted at the midrange and high-end markets.
• To control product quality and shorten delivery lead times, most of these suppliers will continue manufacturing the key components needed for their own DC motor production. These makers use mostly automated, high-precision and high speed machines.
• R&D efforts for DC 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.
• Exports are likely to increase in the second half of 2006 through the first half of 2007.
The DC motor industries in mainland China, Taiwan and Hong Kong are discussed in the Industry Background. This section talks about these companies' major manufacturing bases in the region, specific industry drivers and challenges, and export markets.
Industry Overview
The 41 DC motor suppliers covered in this report manufactured about 698.6 million DC motors in 2005. The total projected output volume for these mainland China-, Hong Kong and Taiwan-based companies is at least 26 percent of the estimated 2.7 billion DC motors produced by mainland China in the same year. Mainland China is one of the largest production bases for DC motors in the world. Large scale companies, such as Panasonic, Sanyo, Mabuchi and Johnson Electric Motors have DC motor factories on the mainland.
According to the Micro Motor Branch Association under the China Electronic Components Association, the mainland has the capacity to produce more than 60 percent of the total global production. A report by the Electric Motors Reference Center states that half of the world's motor supply is from mainland China, particularly small motors with a power rating of less than 1hp.
The manufacture of DC motors in Greater China is centered in the coastal cities of Guangdong, Zhejiang and Jiangsu provinces in the Yangtze River Delta and Pearl River Delta. With their well-established international trade infrastructure and booming financial and service economies, these two areas continue to draw in more foreign invested companies, making the area the leading economic region and most significant manufacturing center on the mainland. These provinces account for 80 percent of mainland China's total DC motor production. Other companies, opting for lower labor costs and production overheads, have set up manufacturing bases in Shandong in the east and Liaoning in the northeast.
Guangdong, sustained by a wide network of electronic components sources and mold-making, plastic injection and SMT subcontractors, is where 39 percent of the 41 suppliers surveyed in this report have set up their manufacturing facilities. Another 32 percent of the suppliers have factories in Zhejiang.
Supplier Profile
Bi-Sonic Technology Corp.
Based in Taipei, Taiwan, Bi-Sonic Technology Corp. was established in 1979 as a manufacturer of brushless DC motors, brushless DC fans, cross-flow DC fans, tubular AC axial fans and fan accessories. The company also offers custom design, system packaging design and services related to material and components purchasing.
Fifty percent of the company's sales come from OEM and ODM clients, the other half from own-brand sales. Total annual sales in 2005 reached US$21 million, US$4 million of which from DC motors. For 2006, total sales are expected to rise 19 percent to US$25 million, with DC motors accounting for 15 percent to 20 percent.
Ninety-percent of products are exported mainly to Europe, Asia, and North and South America. Bi-Sonic uses Hong Kong as its export port but has begun shipping products via the Shenzhen Yan Tian Port. In the near future, the company also plans to ship products from Shanghai. Bi-Sonic participates in trade shows such as Computex, Taitronics and Munich Electronica.
Currently, FOB prices of the company's DC motors range between US$4 and US$10. For 2006, prices are forecast to increase by 4 percent, reflecting rising costs of raw materials such as steel and copper.
Manufacturing Capability
Bi-Sonic has two factories: one in Taipei and another in Guangdong. The Guangdong factory spans 9,340sqm, with six production lines and more than 600 production workers. About 90 percent of the company's output is manufactured in the Guangdong factory. The company plans to build another facility in mainland China.
Bi-Sonic turns out an average of 85,000 DC motor units per month at 85 percent of its full production capacity. DC motor annual output in 2005 was 1 million units. Output is expected to increase by 10 percent in 2006.
All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.
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