Enhancing servo motor technology for industrial automation

by Vianie Li & Cecile de Veyra

As automation continues to gain traction in factories, implemented in CNC machines and industrial robots, demand for servo motors has been increasing. These electromechanical devices are used in robotic arms, robots that transport loads, and bending, metal sheet cutting and milling machines. They have advantages of high efficiency, reliability and accuracy, with closed-loop operation requiring no manual input or intervention.

In the Chinese mainland, widening use of industrial robots, in pursuit of Industry 4.0 to realize smart manufacturing, is expected to require 393,200 servo motors in 2026, registering 4.3 percent CAGR from 2020 when about 211,100 were used, according to Research and Markets. This report also noted that foreign companies dominate the market for this key component there, especially in the midrange and high-end segments with an overall share of more than 70 percent.

Based on Qianzhan Research Institute’s estimates, suppliers from Japan, including Panasonic, account for 45 percent of the Chinese market, followed by those from Europe and the Taiwan region with respective shares of 20 and 15 percent. The remaining portion is owned by homegrown companies, led by Shenzhen Inovance, HuazhongCNC and Estun.

Most Chinese manufacturers currently produce entry-level servo motors. To improve their share of the domestic market and catch up with foreign counterparts in technology, large companies will highlight the development of products with a high overload capacity and fast dynamic response. One major Chinese player, Guangzhou Haozhi, is working with an industry specialist, Swiss company Infranor. This is to realize servo motors and drives with a compact structure, and high speed and precision, especially for industrial robotics.

Chinese-made servo motors are mainly used in machine tools, electronic manufacturing equipment, packaging and textile machines, and industrial robotics. In 2020, these applications represented 20.4, 16.5, 12.6, 12.1 and 8.7 percent of shipments, respectively, according to Qianzhan Research Institute.

Globally, the servo motor market is expected to reach $5.87 billion in 2022, posting 6.36 percent CAGR from $4.69 billion in 2017 based on AskCI Consulting’s forecast. This sector in the Chinese mainland has also been expanding over recent years despite the pandemic, from $2.18 billion in 2019 to $2.29 billion in 2020. In 2021, with sustained manufacturing activities, there was a 5 to 10 percent increase, a trend that is anticipated to continue in the months ahead.

Driven by this positive outlook and the opportunity to level up against the competition, some Chinese suppliers are not only allocating resources for R&D but also for production. Shenzhen Inovance announced in late 2021 that it would be investing $769 million in the construction of a new factory in Yueyang in Hunan province. When completed, the facility will be able to output 11 million servo motors every year with a total production value of $923 million.

This initiative, while limited to a few key domestic players, is expected to gather steam and lead others to follow suit in the coming years.