September 14, 2012 - Since the end of 2011, China has been suffering through a sizeable economic slowdown, and the low voltage generators market is feeling the effects. When compared to the rapid growth the country experienced over the past several years, the projected 2012 GDP growth rate for China has been revised downward. According to a recently released report on The World Market for Low Voltage Generators from IMS Research (recently acquired by IHS Inc. (NYSE:IHS)), the Chinese market for low voltage generators is forecast to decline in 2012 and only grow at average annual rate of 3.8 percent through 2016.
The slowdown was first evident in small and medium sized manufacturers in South and East China. Many of these manufacturers reported no new orders during the second half of last year. Data from the first quarter of 2012 was also much more anemic than previously anticipated. The trade figures were particularly worrisome, as both the export and import growth rates were the weakest since the fall of 2009. According to IMS Research Analyst Greg Johnson, “China accounts for nearly 50 percent of the total Asia Pacific revenues and 20 percent of the global market.
Therefore, any negative shift in the Chinese market will have a substantial impact on the low voltage generators market globally.” While China has a significant domestic market for low voltage generators, their export market is nearly as large. Much of the export demand for China’s low voltage generators comes from the EMEA region, which continues to feel the effects of the Eurozone debt crisis. As a result, overall demand for Chinese low voltage generator exports is down. An examination of certain industry sectors in China sheds further light on the situation.
The marine industry in China is predicted to be one of the hardest hit by the slowdown. It is estimated that low voltage generator sales into this sector will decline by more than 15 percent in 2012. Growth in the commercial building industry sector was previously driven by the prosperous period the commercial real estate market witnessed in China over the last 10 years. However, more recently the Chinese commercial buildings market has slowed considerably from those levels, which has had a negative impact on sales of low voltage generators used in the sector in 2012. This sector is expected to stabilize in 2013 due to ongoing demand from hospitals, smaller medical clinics and shopping malls.
Recent economic data suggest that China's deceleration has ended, and overall, IMS Research believes China's economy should be able to achieve a soft landing in 2012 and return to more favorable growth in 2013 and beyond. As a result, the market for low voltage generators is expected to see moderate growth through 2016. Published in September 2012, The World Market for Low Voltage Generators – 2012 Edition, quantifies the expected turbulence in this global market through 2016. The report details the current state of the industry sectors which utilize low voltage generators, forecasting outperforming and underperforming sectors, as well as regional market performance and other trends affecting the global low voltage generators market.
About “Low Voltage Generators – World – 2012” report
The World Market for Low Voltage Generators is IMS Research’s first study dedicated solely to the low voltage generators market, since medium voltage generators are now covered in their own report. A low voltage generator is defined as an electrical rotating machine that converts mechanical energy into electrical energy, with a voltage rating of 690V and below. The study provides a comprehensive set of market statistics for the global market for low voltage generators, and presents market data in three regional volumes: Americas, EMEA, and Asia Pacific. The report is further segmented by output power, product type, industry sector, speed, protection, duty rating, frequency, and phase type.
Revenue and unit data was collected for 2011, and forecasts for the market are presented for the period 2012 to 2016. The report also presents market shares for the leading suppliers at a worldwide and regional level.
About IHS
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 6,000 people in more than 30 countries around the world.
About IMS Research
IMS Research, recently acquired by IHS (NYSE: IHS), is a leading supplier of market research and consultancy to over 2500 clients worldwide, including most of the world’s largest technology companies. Established in the UK in 1989, IMS Research now has dedicated analyst teams focused on the factory automation, automotive, communications, computer, consumer, display, financial & ID, LED & lighting, medical, power & energy, solar PV, smart grid and security markets. Currently publishing over 350 different syndicated report titles each year, these in-depth publications are used by major electronics and industrial companies to assess market trends, solve marketing problems, and improve the efficiency of their businesses.
