Sales of high-power ac drives in China grew by almost 13% in 2007, and it should continue at the same rate through 2012. This will take the market from $1 billion in 2007 to nearly $1.9 billion in 2012, according to a study from the Arc Advisory Group, a manufacturing and supply-chain analyst group.

Arc also predicts Chinese manufacturing, which has grown rapidly over the last decade, will need to adjust to lowered demand in the global economy. However, the business environment in China is still favorable and should continue to attract companies aiming to set up low-cost manufacturing plants to serve expanding Chinese markets. And the need to reduce energy costs, a significant factor in overall production costs, will boost sales of high-power ac drives.

The group also sees China, along with the growing economies of Brazil and Russia, as being responsible for continued growth in the upcoming decade.