World Power Transmission and Distribution Equipment Market to Reach $161 Billion by 2018

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Expansion in the global market for electric power transmission and distribution equipment to meet the needs of broad economic development will be accompanied by increases in flexible AC transmission equipment and residential generators, according to Global Information Incorporated (GII) (Kawasaki, Japan).

The global market for transmission and distribution equipment is projected to reach $161 billion by 2018. This market will be driven by a spiraling increase in energy consumption across the world, as well as a growing focus on the development of environmentally friendly renewable sources of energy. Opportunities also will be largely influenced by the role played by governments in developing the highly capital-intensive electric power industry.

The Asia-Pacific region represents the largest and fastest-growing regional market for electric power transmission and distribution equipment. This region is expected to grow at a compound annual growth rate (CAGR) of 18% over the period.

Among the product markets, which are forecast to grow, switchgears is the largest and fastest growing product segment. It is projected to have a CAGR of 17.8%.

The global market for residential generators is projected to reach $11.3 billion by 2018. This growth will be driven primarily by changing lifestyles in both developing and developed nations. Increasing dependence on electronic devices and the growing prominence of outdoor activities will propel demand in the developed markets.

In developing markets, growing urbanization, industrialization and electrification and rising disposable incomes will increase the penetration of generators.

The global market for flexible AC transmission equipment is expected to reach $2.4 billion by 2018, and this is driven largely by the cautious resurgence in infrastructure and construction projects in developed countries. It also is driven by rising energy demand in developing countries and the ensuing investments in energy infrastructure to overcome capacity shortages.

The shift toward variable shunt compensation equipment is a noteworthy trend in the market, because of their superior technical benefits compared to other compensation equipment. Variable shunt compensation is increasing its market share considerably in the total flexible AC transmission equipment market.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.