Three levels of competition are currently noticeable in the market.
The first tier of European and American manufacturers concentrate on drive solutions rather than product sales, with the second tier of Japanese companies focussing on the reverse.
Both, however, are known for their high-quality service and support.
Local companies producing low-end drives comprise the third tier of competition.
They are now attempting to challenge international competitors by developing more advanced drives.
In a highly fragmented competitive landscape, only Fuji Electric, Siemens, Mitsubishi and ABB have been able to build reasonable market share.
Some prominent local producers such as Guangzhou Foshan, Ningbo Zhongyi and Shanghai Nanfang account for minor shares of the overall market, but have carved out solid positions in niche areas.
"The main competitive issues remain price factors, service, technology expertise, quality, distribution and customer education", says Sabiers.
"Competitive pressures can be expected to heighten as new competitors move into the market as a consequence of the fast overall growth expected".
Customers are expected to continue valuing high-quality technology.
Manufacturers will need to support the demand for more advanced technology through customer education.
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