IMS Research forecasts that the Chinese market for low-voltage integral horsepower AC motors will nearly triple in revenues to US$7.9 billion in 2016 from 2010. Unit shipments are expected to grow annually at double-digit rates, reaching 22.6 million units in 2016. The robust revenue growth will be driven by local power-saving legislation mandating sales of higher-efficiency, and thus more expensive motors, according to a new report. US and Canada lead the world in motor efficiency standards, a major transition to IE3 Premium Efficiency having already occurred by the end of 2010. China is far behind North America. the Chinese motor manufacturers are required to change to selling IE2 motors in July 2011. Currently, the industrial energy consumption accounts for nearly 70% of the total energy consumption, while motor energy consumption accounts for nearly 60%~70% of industrial energy consumption. As a result, the actual motor energy consumption will amount to 50% of total. With the shift from IE2 to IE3, motors sold in China will be more expensive than in the past. The IE3 High efficiency market segment will take the lion share of revenues in 2016. In addition, China, with the big advantages in the rare earth mineral market, is expected to become the leading producer and consumer of permanent magnet motors. With the legislative rebates, the permanent magnet motor will be the fastest growing of the low-voltage AC motor types in China, with nearly 80% CAGR from 2010 to 2016.