CLEVELAND, Feb. 12, 2020 /PRNewswire/ — The $141 billion global market for electric power transmission and distribution equipment is forecast to grow at an accelerated rate through 2023, according to a new Freedonia Group study. Rapid industrialization in large-population countries such as China and India will drive advances, as electrification infrastructure in these markets expands. Gains will also be aided by:
- strong growth in electricity consumption throughout the developing world, where significant portions of the population still are not connected to the electrical grid
- increasing proliferation of renewable energy projects in developed markets such as the US and Western Europe, which will require significant quantities of electric power transmission and distribution equipment in order to integrate with existing grids
A number of country-specific trends will also impact demand. For example, despite obstacles, the slow but sure reactivation of nuclear reactors in Japan following the 2011 Fukushima disaster will help that important market – the sixth largest in the world – rebound through the forecast.
Transformers to be fastest growing product group
Through 2023, demand for transformers is forecast to rise 4.2% per year, supported by:
- increasing industrial co-generation and the rising popularity of independent power producers in many parts of the world
- electrification efforts in the developing world, which will benefit distribution generators in particular
- rising use of renewable sources of energy, particularly offshore wind power generation
- heightening use of sensitive electronic equipment, which will boost sales of voltage regulating transformers
Meanwhile, growth in the larger switchgear and switchboard apparatus product segment will be fueled in particular by:
- advances in building construction in industrializing countries like China that are investing more in electrical grid expansion
- increasing use of sensitive electronic equipment such as automation systems, computers, and electric machinery in developed markets
Want to learn more?
Check out the Freedonia Group’s new Global Electric Power Transmission & Distribution Equipment study, which analyzes the global market for power, distribution, and platform-mounted transformers and switchgear and switchboard apparatus by product type and market (i.e., electric utilities; industrial and nonutility generators; and commercial, government, and residential). Historical demand data for 2008, 2013, and 2018 and forecasts for 2023 are also provided on a country-by-country and region-by-region basis.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group
