Electric Power Transmission and Distribution Equipment: A Global Strategic Business Report
San Jose, California (PRWEB) October 25, 2012
Follow us on LinkedIn – An essential for fuelling broader economic development, energy consumption is on the rise. Given the tight correlation between economic output and energy use, robust business activity across all major sectors across the globe is resulting in spiraling demand for electricity. Other factors driving energy demand include increasing population, growth in the number of people moving to urban areas worldwide, improving standards of living, higher mobility and trade. Waxing demand for energy is creating the need for expanding energy infrastructures as governments focus on achieving sustainable energy self sufficiency. Against this backdrop, the market for electricity distribution and transmission equipment is projected to register robust growth backed by increasing number of new installations required to meet rising electricity demand. Future growth will also be driven by the need to replace fast aging installed base of existing power transmission and distribution (T&D) equipment. Regulatory mandates for bringing improvements in grid reliability will additionally make upgradation obligatory, thus extending regulatory driven stability to the trend.
Robust industrialization in developing countries and the ensuing expansion of activity in energy hungry industries additionally paves the way for increased energy infrastructure investments including new energy transmission lines. Developing countries in Asia-Pacific, Latin America and the Middle East are primed to drive growth in the world Electric Power Transmission and Distribution Equipment market. Strong housing industry in these countries is a key reason fingered for driving growth of transmission equipment, since new housing construction opens up newer and additional subdivisions for distributing power. Rural electrification in these countries, as part of the ongoing industrialization efforts, is additionally lending traction to growth. While new infrastructure expansion is poised to drive demand in developing countries, upgradation of creaking power infrastructure and obsolesce will drive growth in developed countries.
Growth in the market will also be triggered by the growing focus on renewable sources of energy. Rising environmental concerns associated with conventional electricity generation sources coupled with the increasing need to meet the electricity demand is fostering the need for generating environment friendly electricity. This, in turn, is driving increased focus on energy generation from renewable sources such as wind power and solar energy. Also, a large number of newly approved and commissioned renewable projects are located in places away from urban centers and will thereby drive demand for equipment used to transmit and distribute power over longer distances. Poised to especially benefit are transformers used to connect to Distributed Energy Resources (DER). Increasing investments on alternative energy resources and fast-paced developments in solar and other renewable energy projects in developed and developing markets alike are poised to benefit the T&D equipment market in the medium to longer term.
Against a backdrop of rising focus on energy conservation, emission reductions, and smart growth in energy production, poised to score the strongest gains are high efficiency transformers engineered to reduce energy transmission and distribution losses. On an average, approximately 3.0% of total energy generated in developing countries is lost due to inefficiencies in grid transformers and as the spotlight turns on the amount of energy lost in transmission and distribution, R&D investments in higher efficiency transformers is poised to increase. Legislation of energy efficiency standards and guidelines for life cycle assessment for transformers will additionally compel market adoption of energy efficient transformers. Implementation of tax holidays and incentives to purchase energy-efficient capital equipment will additionally support demand in this space.
While the electric power T&D equipment market in most regions worldwide continues to steadily recover from the 2007-2009 world economic recession, the market in Europe is running into fresh set of challenges created by the region’s ongoing sovereign debt crisis. The region’s power sector, the most risk prone, is now witnessing reduced investments in the wake of renewed fears over the European Government’s ability to get the debt crisis under control. With Europe’s debt crisis still far from being resolved, renewable energy is still a target for cutbacks. Weak construction market, especially the housing sector, together with reduced Government power infrastructure spending, especially on establishing new electric grids, is squeezing new T&D equipment orders. With numerous factors continuing to threaten capital expenditure in the energy sector, demand for electric power T&D equipment is treading the tight rope in the region.
As stated by the new market research report on Electric Power Transmission and Distribution Equipment, Asia-Pacific represents the largest and the fastest growing regional market. The region is expected to grow at a CAGR of 18% over the analysis period. Among the product markets, Switchgears represents the largest as well the fastest growing product segment with revenues from the segment forecast to wax at a CAGR of 17.8% over the analysis period.
Major players operating in the market include Alstom, ABB, Actuant Corporation, Bharat Heavy Electricals Limited, Cooper Industries Plc., Crompton Greaves Ltd., Eaton Corporation, EGS Electrical Group, Federal Pacific Company, G&W Electric Company, General Electric Company, Hammond Power Solutions Inc., Howard Industries, Inc., Kirloskar Electric Company Limited, Larsen & Toubro Limited, Mitsubishi Electric Corporation, Powell Industries, Inc., S&C Electric Company, Schneider Electric SA, and Siemens (Energy Sector) AG., among others.
The research report titled "Electric Power Transmission and Distribution Equipment: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of the current market scenario, market dynamics, trends and issues, key statistics, market share analysis, product overview, recent product introductions/innovations, strategic corporate initiatives, and profiles of major/niche global and regional companies worldwide. The report provides market size estimates and projections (in US$) for geographic markets such as the United States, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Latin America, and Rest of World. Product markets analyzed include Transformers (Power Transformers, Distribution Transformers) and Switchgears (Medium-Voltage Switchgears and High-Voltage Switchgears).
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