Abstract
Global demand to increase 5.3% annually through 2013
World transmission and distribution electric power equipment demand is
forecast to rise 5.3 percent per year through 2013 to $128 billion. Although
strong, gains will decelerate significantly in comparison to the growth
experienced between 2003 and 2008, when strong value demand was supplemented
by a high pricing environment for electric power equipment. The largest
regional markets for electric power equipment will remain the Asia/Pacific
region and North America, with Western Europe also important. In 2013, China
will account for almost 30 percent of the world market.
Asia/Pacific region to register strongest gains
Among all regions, the Asia/Pacific region is projected to register the
strongest gains by far in electric power equipment demand through 2013. The
region is home to more than 55 percent of the world' s population, with a
sizable portion of these people currently 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 especially in infrastructure such as roads and electricity
generation), will work to boost demand for electric power equipment in the
region. The developed Japanese market, however, will continue to register
below worldaverage gains through 2013.
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. Even
rural inhabitants in North America and Western Europe typically have ready
access to national electric grid supplies. In Western Europe, growth in
electric power equipment demand will be further hampered by negligible gains
in population levels through 2013.
Growth in wind power products to boost US market
In the US, gains in wind power generation are expected to be spectacular
through 2013, benefitting electric power equipment sales to that sector. In
spite of having an abundant supply of wind and a vast land area, wind power
currently accounts for under two percent of total US electricity needs.
Industrial market to see fastest gains worldwide
The largest markets for electric transmission and distribution equipment are
the electric utilities and industrial sectors. In 2008, electric utilities
accounted for 46 percent of total demand, with the industrial sector --
including nonutility generators -- accounting for an additional 31 percent.
The industrial sector will register strongest gains through 2013.
Study coverage
This new Freedonia industry study, World Electric Power Transmission &
Distribution Equipment, presents historical demand data (1998, 2003 and 2008)
plus forecasts for 2013 and 2018 by product, market, world region and for 20
countries. The study also considers market environment factors, evaluates
company market share and profiles 25 global industry competitors.
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