Servo system revenues in the Chinese market increased by an estimated 26.8 per cent in 2006, according to a new report published by IMS Research. The Chinese servo system market was estimated to be $361.6m in 2006. The market is forecast to maintain steady growth to reach about $953.8m in 2011.
Servo systems are very precise automated systems that account for more than 80 per cent of the revenue of the total motion controls market in China. As the main impetus of growth to motion controls market, servo systems are expected to grow at a compound annual growth rate of more than 20 per cent in terms of revenue in next five years.
Although the servo systems market is enjoying excellent growth, the competitive environment is rapidly evolving. In the past, Western, Japanese and local suppliers seldom competed directly and primarily focussed on a dedicated market. Now, Taiwanese and Korean companies have entered the market and are providing increased competition with a relatively low price.
Market analyst, Reggie Li commented: 'Chinese suppliers still have potential to increase their market shares quickly in next five years. [They] are getting mature both in technology and sales channel development. Government aid through R&D funds also helps the Chinese companies to develop more advanced products which will help these companies compete on something other than price.'
