The U.S. Power, Distribution, and Specialty Transformer Market Is Set to Undergo a Moderate Expansion

IndexBox has just published a new report "U.S. Power, Distribution, And Specialty Transformer Market. Analysis And Forecast to 2025". Here is a summary of the report's key findings.

Power, Distribution, and Specialty Transformer Consumption Declined Slightly

According to IndexBox estimates, the U.S. power, distribution, and specialty transformer market amounted to $X, a decrease of X% against the previous year. Over the last five years, the market volume contracted at a moderate pace. Prior to this, the market volume declined significantly over the 2009-2010 period, due to reduced investment as a result of the U.S. and global financial crisis. In 2011, it bounced back slightly, but this recovery remained insufficient to regain pre-crisis figures. Afterwards, the market value remained stable but then started its current slight downward trend.

The Power, Distribution, and Specialty Transformer Sector Is Set to Undergo a Moderate Expansion

The transformer and power distribution equipment market is determined by the construction of electric utility facilties, the creation of new communities, and a replapower, distribution and specialty transformer cycle. According to forecasts from the U.S. Energy Information Administration, electricity generation and consumption in the USA are set to increase gradually at a rate of approx. X% a year, thereby contributing to a steady rise in the need for electrical equipment, including transformers.

The rising demand for transformers will also be shaped by both the residential construction sector and industrial production alike. The increased construction and the expansion of residential areas will require the further development of the electricity distribution networks, which will in turn promote a surge in demand for electrical transformers.

Industrial production is expected to continue its steady growth, boosted by the accelerating pace of capital equipment spending. This will result in the expansion of production capacity as well as in the modernization and overhaul of company plant facilities; this will contribute to the demand for improved infrastructure, including electric utilities.

In view of the factors highlighted above, the power, distribution, and specialty transformer market in the U.S. is forecast to accelerate, with an anticipated CAGR of +X% for the period from 2018 to 2025, which is expected to bring the market value to $X (in constant prices of 2017) by 2025.

The Value of Shipments of Power, Distribution, and Specialty Transformers Declined Gradually

U.S. power, distribution, and specialty transformer manufacturing illustrated a slight decline over the last three years, falling to $X in 2017. This level was $X (or X%) less than the highest level observed in 2007 and $X (or X%) less than the previous year. Overall, output in value terms remains stable following the 2011 post-crisis recovery; a moderate declining trend was observed over the 2016-2017 period.

Power and Distribution Transformers Comprised X% of Total Output

Power and distribution transformers, excluding parts accounted for the highest share (X% in 2017) of U.S. power, distribution, and specialty transformer manufacturing, followed by power regulators, boosters, and other transformers and parts for all transformers (X%), specialty transformers, excluding fluorescent lamp ballast (X%), commercial, institutional, and industrial general-purpose transformers, all voltages (X%) and fluorescent lamp ballasts (X%).

All product categories posted a downward trend over the period from 2008-2018: power and distribution transformers, excluding parts (-X%), fluorescent lamp ballasts (-X%), specialty transformers, excluding fluorescent lamp ballast (-X%), commercial, institutional, and industrial general-purpose transformers, all voltages (-X%), power regulators, boosters, and other transformers and parts for all transformers (-X%).

From 2008 to 2017, the share of commercial, institutional, and industrial general-purpose transformers, all voltages (-X percentage points), specialty transformers, excluding fluorescent lamp ballast (-X percentage points), power regulators, boosters, and other transformers and parts for all transformers (-X percentage points) decreased significantly, while power and distribution transformers, excluding parts (+X percentage points) saw their share increase. Meanwhile, production of fluorescent lamp ballasts remained relatively stable over the period under review.

Approx. X% of Total Consumption is Buoyed by Imports

Import supplies accounted for X% of the total U.S. market in 2017. This share has remained relatively stable since 2011, implying that the market is reliant on imports. Intense competition from low-cost imports, particularly from Mexico and China, has increasingly constrained industry performance during the period under review.

Mexico and Canada Accounted for More than a Half of U.S. Power, Distribution, and Specialty Transformer Exports

The U.S. exported $X of power, distribution, and specialty transformers in 2017. The volume of exports has been in consistent decline over the last four years and is currently X% below the peak figure seen in 2013. In physical terms, the fall in exports was more pronounced. In 2017, exports dropped by X% to X units, which was even lower than the outset level.

In 2017, the main destinations for U.S. power, distribution, and specialty transformer exports were Mexico (X%), Canada (X%), followed, somewhat lagging behind, by China (X%), Korea (X%), Saudi Arabia (X%), the Netherlands (X%) and Panama (X%). The Netherlands (+X%) and Korea (+X%) were the fastest growing export destinations from 2007 to 2017. The share exported to Mexico (+X percentage points) and Korea (+X percentage points) increased, while the shares of the other countries remained relatively stable throughout the analyzed period.

Approx. X% of U.S. Imports Were Supplied by Mexico, China and Canada

The value of total U.S. power, distribution, and specialty transformer imports totalled $X in 2017, decreasing marginally over the last five years. In physical terms, imports bounced back by X% to X units in 2017, after a significant decline over the period from 2010 to 2016.

Mexico (X%, based on USD), China (X%) and Canada (X%) were the main suppliers of power, distribution, and specialty transformers into the U.S. The other suppliers assumed a combined share of X% of total U.S. imports in 2017. Japan ranks fourth in the U.S. imports structure, occupying X% of total imports and then India (X%), Taiwan, Chinese (X%) and Italy (X%).

Italy (+X% per year), followed by China (+X% per year) and Canada (+X%) were the fastest growing suppliers from 2007 to 2017. China (+X percentage points) and Canada (+X percentage points) strengthened their position in U.S. imports from 2007 to 2017. By contrast, Mexico saw its share reduced by –X percentage points.

Do you want to know more about the U.S. power, distribution and specialty transformer market? Get the latest trends and insight from our report. It includes a wide range of statistics on

• power, distribution and specialty transformer market share
• power, distribution and specialty transformer prices
• power, distribution and specialty transformer industry
• power, distribution and specialty transformer sales
• power, distribution and specialty transformer import
• power, distribution and specialty transformer export
• power, distribution and specialty transformer market forecast
• power, distribution and specialty transformer price forecast

Join Us at HANNOVER MESSE 2024

Don’t miss your chance to connect with us directly. Schedule a personal meeting to dive deeper into how solutions.
Hall 002, Stand C10. 22 - 26 April 2024 | Hannover, Germany

Book Your Meeting

Source: IndexBox Market Intelligence Platform