World demand for electric power transmission and distribution equipment is forecast to rise 5.3 percent per year through 2013 to $129 billion. Although strong, gains will decelerate significantly in comparison to the growth experienced between 2003 and 2008, when market value was boosted by a high pricing environment. The largest regional markets for electric power equipment will remain the Asia/Pacific region and North America, with Western Europe also important. By 2013, fast-growing China will account for almost 30 percent of the world market. Newer versions of existing electric power equipment products used in conjunction with wind and solar energy, and in conjunction with the oil and gas, mining, and heavy manufacturing industries, will see strong growth. These and other trends are presented in World Electric Power Transmission & Distribution Equipment, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The Asia/Pacific region is projected to register by far the strongest gains among all regions in electric power equipment demand through 2013. The region is home to more than 55 percent of the worlds population, with a sizable portion of these people living in rural areas often devoid of electricity. Robust economic growth in developing countries such as China and India, combined with rapid urbanization and growth in fixed investment spending, will work to boost demand for electric power equipment in the region. The developed Japanese market, however, will continue to register below average gains.

The North American and West European markets will both perform below the global average, with the latter particularly weak. Both regions have relatively large and mature markets for electric power equipment, with a sizable majority of their inhabitants already living in urbanized areas. In Western Europe, growth in electric power equipment demand will be further hampered by negligible gains in population levels through 2013. In the US, gains in wind power generation are expected to be spectacular through 2013, benefiting electric power equipment sales to that sector. In spite of having an abundant supply of wind and vast land area, wind power currently accounts for under two percent of total US electricity needs (as opposed to 20 percent in Denmark; over 10 percent in Ireland, Portugal and Spain; and 6 percent in Germany).