In the frequency converter market, domestic brands still face significant challenges compared to their international counterparts in terms of technology, manufacturing capabilities, industrial design, and financial strength. Despite the growing presence of local brands, foreign companies continue to dominate the industry, maintaining a strong foothold in both high-end and mid-range segments.
Currently, over 70% of the brands in the market are domestically owned, but their combined market share remains around 24%. Although domestic brands are gaining ground rapidly, the majority of the market is still controlled by a handful of European and Japanese companies such as Siemens, ABB, Mitsubishi, and Yaskawa. Industry experts believe that the Chinese inverter market is still in its early stages of development, with significant growth potential. It's expected that the market will not reach saturation for at least the next decade, with an annual growth rate above 15% during this period. However, the global financial crisis in 2009 caused a slowdown in market expansion, affecting overall growth rates.
The supporting industry for inverters in China is still relatively weak. Domestic manufacturers lag behind international leaders like Siemens and ABB in key areas such as advanced technology, production processes, and product design. In the low- and medium-voltage inverter market, foreign brands maintain a dominant position, holding about 76% of the market share—similar to levels seen in 2007. The increased investment in infrastructure projects in 2008 further strengthened the position of leading foreign firms, with the top ten foreign companies capturing a larger portion of the market. Most domestic inverter companies focus on V/F control products, while more advanced technologies like vector control remain largely dominated by international players.
Although some well-established domestic brands, such as Shenzhen Inventronics and Chengdu Hope Senlan, have made progress in developing vector inverters and achieved success in certain applications, their product ranges and specifications are still limited compared to global competitors. The market share of local brands has been expanding quickly, and the influence of leading domestic companies has grown significantly. However, the top ten foreign brands continue to hold a large portion of the market, especially in sectors where they have long-standing advantages.
The Chinese inverter market was initially driven by foreign brands, which held over 90% of the market share until around 2000. As domestic brands gained momentum, their market share gradually increased. By 2005, domestic brands had captured about 15% of the low- and medium-voltage inverter market, rising to 20% in 2006 and reaching 24% in 2007. In 2008, despite the impact of the financial crisis, the market share of domestic brands remained stable at around 24%, as many infrastructure projects were still dominated by foreign brands. This trend highlights the ongoing challenge for local manufacturers to break into higher-value segments and compete more effectively on a global scale.
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