ABB sees rising opportunities in China's drive for industrial efficiency

China will remain central to ABB's global low-voltage motor business, with the Swedish-Swiss technology company set to expand local manufacturing and innovation as the country's industrial upgrading and green transition fuel demand for more energy-efficient equipment, a senior executive said.

To capture these opportunities, ABB will continue investing in local research and development, manufacturing and supply chains to better serve Chinese customers while reinforcing China as an innovation hub and export base within the company's global network.

Stefan Floeck, ABB's division president of IEC Low Voltage Motors, said China is the company's second-largest market globally and its largest market for low voltage motors.

"We will continue investing in China, expanding local manufacturing and innovation to meet the evolving demands of Chinese customers," Floeck said.

ABB's low-voltage motor business has invested more than 150 million yuan ($22.12 million) in recent years to upgrade its Shanghai manufacturing base, including research and development testing laboratories and production lines. About 85 percent of the company's revenue in China comes from products, solutions and services manufactured locally. Its domestic supply chain also supports exports from China to overseas markets.

Floeck said improving the energy efficiency of electric motors represents one of the most effective ways for manufacturers to lower electricity consumption while enhancing competitiveness.

Electric motors account for the majority of industrial electricity use, making efficiency improvements critical for reducing both operating costs and carbon emissions, he added.

The wider adoption of ultra-premium efficiency motors also aligns with the priorities of China's 15th Five-Year Plan (2026-30), which emphasizes green and low-carbon growth, industrial upgrading and the development of emerging industries.

ABB has deployed more than 14 million high-efficiency motors and drives across China.

Its integrated motor-and-drive solutions have helped save hundreds of billions of kilowatt-hours of electricity nationwide, according to the company.

Floeck said ABB's latest high efficiency permanent magnet motors and synchronous reluctance motors deliver significantly lower energy losses than conventional IE3 motors. Although they require slightly higher upfront investment, the additional cost can typically be recovered within just a few months through lower electricity bills.

"Over a motor's average service life of around 20 years, the purchase price accounts for only about 2 percent of total cost of ownership, while energy consumption represents around 97 percent," he added.

Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said China's continued industrial upgrading, broader institutional opening-up and commitment to green development will continue creating opportunities for multinational manufacturers investing in advanced technologies, green solutions and local innovation.