Cleveland 6/9/2011 2:45:01 AM
US Demand for Electric Transmission and Distribution Equipment to Approach $26 Billion in 2015
US
demand for electric transmission and distribution (T&D) equipment is
forecast to climb 5.2 percent per year to $25.8 billion in 2015. Increases will be fueled by continued growth
in electricity demand and the rising use of renewable energy sources, many of
which will require significant investment in the electric grid to enable these
remote generators to deliver power to customers. Gains for electric T&D equipment
will also be supported by investment in the US electric grid as part of an
effort to modernize and upgrade the system to the so-called “smart grid.” These and other trends, including market
share and product segmentation, are presented in Electric
Transmission & Distribution Equipment, a new study from The
Freedonia Group, Inc., a Cleveland-based industry market research firm.
The
electric utilities and industrial sectors have traditionally been by far the
largest markets for electric T&D equipment. In 2010, electric utilities accounted for
half of total demand. This market is
expected to record the slowest growth through 2015, as a result of increased
prevalence of alternative generating sources like independent power producers
(IPPs). The utility market will
nevertheless remain the largest in the industry.
The
smaller residential market will register the fastest increases through 2015,
with gains supported by the sharp turnaround in residential construction
activity and residential fixed investment following a period of decline. Similarly, the commercial building market
will record above-average gains, as office and commercial construction expenditures
rebound.
Meters,
molded case circuit breakers and nonutility transformers will record the
fastest sales growth among the various products in the electric
power transmission and distribution equipment industry. Demand for meters will benefit from the
growing use of more advanced and expensive “smart meters” that provide
customers with pricing signals and thereby help limit power consumption. Demand for molded case circuit breakers will be
supported by the sharp increases in overall construction activity, boosting
demand for essential electric equipment.
The market for nonutility transformers will be driven by deregulation of
the electric power industry in a number of areas, which has led to an increase
in electricity generated by nonutility companies.
The Freedonia
Group is a leading international business
research company, founded in 1985, that publishes more than 100 industry
research studies annually. This industry analysis provides an unbiased outlook
and a reliable assessment of an industry and includes product
segmentation and demand forecasts, industry trends, demand history, threats
and opportunities, competitive strategies, market share determinations and
company profiles.
