Electric Power Transmission & Distribution Equipment

Growth in electricity generation by IPPs and NUGs, as well as greater electrical output using renewable resources, will boost sales as these operations are added to the electric grid.

US demand to rise 5.5% annually through 2019

US demand for electric power transmission and distribution (T&D) equipment is expected to rise 5.5 percent annually through 2019 to $33.4 billion. Growth in electricity generation by independent power producers (IPPs) and nonutility generators (NUGs), as well as greater electrical output using renewable resources, will result in increased product sales, since these operations need to be appropriately equipped to deliver power to the electric grid. Furthermore, efforts to modernize the electric grid and to improve efficiency and reliability will support market advances via the incorporation of “smart” technologies that provide a number of advantages over, but also cost considerably more than, conventional equipment.

Two-way meters to be fastest growing segment

Advanced metering infrastructure meters (those featuring two-way communication) are forecast to record the strongest demand gains of any electric power T&D equipment product. Suppliers will benefit from the ongoing development of the “smart grid” and related sales of “smart meters.” The ability of these meters to provide automated readings on elec-tricity inflows and outflows, which are necessary for participation in distributed generation and net metering programs, will also boost product demand. Sales of power circuit breakers, metal-clad and metal-enclosed switchgear, and molded case circuit breakers, as well as power and nonutility transformers, will benefit from the expansion of the industrial and NUG market.

Residential market to see most rapid growth

The largest and most traditional markets for electric power T&D equipment are the electric utilities and industrial sectors. In 2014, electric utilities accounted for 53 percent of total demand, with the industrial sector -- including NUGs -- representing an additional 32 percent. Growth in these markets will be supported by increasing electricity generation by IPPs and NUGs, which will require heavy investment by these firms to protect sensitive industrial machinery and to connect new facilities to the grid. In addition, rising spending by electric utilities will provide opportunities, even though these increases will moderate from the strong pace of the past decade.

The much smaller residential electric power T&D equipment market will register the fastest gains through 2019 as residential construction continues its recovery from 2009 lows and updates to the National Electric Code lead to greater use of more advanced, but also more expensive, arc-fault circuit interrupters. In contrast, both the commercial and the government and institutional markets will post below average increases, with the latter expanding the slowest.

Study coverage

This Freedonia industry study analyzes the US electric power transmission & distribution equipment industry. It presents historical demand data (2004, 2009 and 2014) and forecasts for 2019 and 2024 by product (e.g., switchgear and switchboard apparatus, transformers, electric meters, pole and transmission line hardware) and market (e.g., electric utilities, industrial and nonutility generators, commercial sector, residential sector, government and institutions). The study also considers market environment factors, details industry structure, evaluates company market share, and profiles 34 industry competitors, including Eaton, Siemens, and ABB.

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Table of Contents

INTRODUCTION

EXECUTIVE SUMMARY

MARKET ENVIRONMENT

General

Macroeconomic Environment

Fixed Investment

Construction Outlook

Electricity Generation

Generator

Fuel Type

Electric Generating Capacity

Electric Power Transmission & Distribution System

Electricity Consumption

Electric Power Equipment

Historical Market Trends

Pricing Trends

International Environment

World Market

US Foreign Trade

Imports

Exports

REGULATIONS & TECHNOLOGY

General

Regulations & Standards

Electric Utility Deregulation

Wholesale Deregulation

Retail Deregulation

Growth of Distributed Generation

Net Metering

Renewable Energy Portfolio Standards

Impact on Electric Power Transmission & Distribution Equipment Markets

Environmental

Other

Technology

Smart Grid

Arc-Fault Circuit Interrupters

Amorphous Core Transformers

New Transformer Core Shapes

Variable Frequency Transformers

Sulfur Hexafluoride Emissions Reductions

High Temperature Superconducting Equipment

Other

PRODUCTS

General

Switchgear & Switchboard Apparatus

Low Voltage Switchgear

Metal-Clad & Metal-Enclosed Switchgear

Power Circuit Breakers

Molded Case Circuit Breakers

Construction MCCBs

Transportation, Electronic, & Other MCCBs

Power Switching Equipment

Fuses & Fuse Equipment

Duct

Switchgear Relays

Other

Control Panels

High Voltage Fuses & Links

All Other Types

Transformers

Power

500 kVA to 10 MVA

10 MVA to 30 MVA

30 MVA to 100 MVA

Over 100 MVA

Secondary & Other

Distribution

Single Phase

Three Phase & Other

Specialty

High Intensity Discharge Ballasts

Instrument Transformers

Other Specialty Transformers

Nonutility

Other Transformers & Parts

Electric Meters

Demand by Technology

Demand by Type

Pole & Transmission Line Hardware

MARKETS

General

Electric Utilities

Electric Utilities Outlook