US demand for electric power 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 in the market for electric power 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.” In addition, demand from electric utilities will continue to grow as a result of regulatory efforts to ensure that investment in the electric grid is rewarded. However, a slowdown in electric utility capital expenditures will prevent demand from growing even faster. Increases will also be limited somewhat by moderating prices for many types of electric power (T&D) equipment, following a spike in raw material prices between 2005 and 2008.

Electric utilities and industrial sectors to remain largest markets

The electric utilities and industrial sectors have traditionally been by far the largest markets for electric power (T&D) equipment. In 2010, electric utilities accounted for half of total demand. This market is expected to record the slowest growth through 2015, although it will remain the largest market in the industry. Gains in that period will be bolstered by increased investment in the electric grid by utilities. The industrial sector, which includes nonutility generators, accounted for an additional 32 percent of total demand in 2010. Advances in the industrial market will be spurred by increasing electricity generation by independent power producers and cogenerators. The deregulation of the electric power industry will continue to shift demand from utilities to industrial firms and nonutility generators.

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. Similarly, the commercial building market will record the next fastest gains, as office and commercial construction expenditures rebound after a period of decline.

Meters, molded case circuit breakers, and nonutility transformers to lead gains

Meters, molded case circuit breakers and nonutility transformers will record the fastest growth among the various products in the electric power (T&D) 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. These smart meters form an important part of the developing smart grid. 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.

Study coverage

This report presents historical demand data for the years 2000, 2005 and 2010, plus forecasts for 2015 and 2020 by product and market. The study also considers market environment factors, details industry structure, assesses company market share and profiles 37 industry competitors.

TABLE OF CONTENTS

Introduction

EXECUTIVE SUMMARY
1 Summary Table

MARKET ENVIRONMENT
General
Economic Environment
Fixed Investment
Construction Outlook
Electricity Generation
Electric Generating Capacity
Electricity Consumption
Electric Power Equipment
Historical Market Trends
Pricing Trends
International Environment
World Market
US Foreign Trade
Imports
Exports

LIST OF TABLES & CHARTS:
1 Macroeconomic Indicators
2 Nonresidential Fixed Investment Expenditures
3 Construction Expenditures
4 Electricity Generation by Generator & Fuel Type
5 Electric Generating Capacity
6 Electricity Demand by End User
7 Electric Power Equipment Demand
8 Electric Power Transmission & Distribution
Equipment Demand, 2000-2010
Cht Electric Power Transmission & Distribution
Equipment Market, 2000-2010
9 Electric Power Transmission & Distribution
Equipment Price Deflators
Cht Electric Power Transmission & Distribution
Equipment Pricing Patterns
10 World Electric Power Transmission &
Distribution Equipment Demand
11 International Trade in Electric Power
Transmission & Distribution Equipment
Cht US Electric Power Transmission & Distribution
Equipment Imports by Source, 2010
Cht US Electric Power Transmission & Distribution
Equipment Exports by Destination, 2010

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

LIST OF TABLES & CHARTS:
1 Overview of State Renewable
Energy Portfolio Standards
Cht Status of Retail Electric Utility Deregulation
Cht Net Metering Customers, 2005-2010

PRODUCTS
General
Switchgear & Switchboard Apparatus
Low Voltage Switchgear
Metal-Clad & Metal-Enclosed Switchgear
Molded Case Circuit Breakers
Construction MCCBs
Transportation, Electronic & Other MCCBs
Power Circuit Breakers
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
Pole & Transmission Line Hardware
Electric Meters

LIST OF TABLES & CHARTS:
1 Electric Power Transmission & Distribution
Equipment Supply & Demand
Cht Electric Power Transmission & Distribution
Equipment Demand by Type
2 Switchgear & Switchboard Apparatus
Supply & Demand
3 Low Voltage Switchgear Supply & Demand
4 Metal-Clad & Metal-Enclosed Switchgear
Supply & Demand
5 Molded Case Circuit Breaker Supply & Demand
6 Construction-Related Molded Case
Circuit Breaker Demand
7 Power Circuit Breaker Supply & Demand
8 Power Switching Equipment Supply & Demand
9 Fuse & Fuse Equipment Supply & Demand
10 Duct Supply & Demand
11 Switchgear Relay Supply & Demand
Cht Switchgear & Switchboard Apparatus
Demand by Type, 2010
12 Other Switchgear Supply & Demand
13 Transformer Supply & Demand
Cht Transformer Demand by Type, 2010
14 Power Transformer Supply & Demand
15 Distribution Transformer Supply & Demand
16 Specialty Transformer Supply & Demand
17 Nonutility Transformer Supply & Demand
18 Other Transformer & Part Supply & Demand
19 Pole & Transmission Line Hardware
Supply & Demand
20 Electric Meter Supply & Demand

MARKETS
General
Electric Utilities
Electric Utility Outlook
Electric Power Transmission & Distribution
Industrial & Nonutility Generators
Manufacturing & Nonutility Generation Outlook
Electric Power Transmission & Distribution
Commercial Sector
Commercial Construction & Space
Electric Power Transmission & Distribution
Residential Sector
Residential Sector Trends
Electric Power Transmission & Distribution
Government & Institutions
Government Consumption & Investment
Electric Power Transmission & Distribution

LIST OF TABLES & CHARTS:
1 Electric Power Transmission & Distribution
Equipment Demand by Market
Cht Electric Power Transmission & Distribution
Equipment Demand by Market
2 Electric Utility Indicators
3 Electric Utility Market for Electric Power
Transmission & Distribution Equipment
Cht Electric Utility Market for Electric Power
Transmission & Distribution
Equipment by Type
4 Industrial & Nonutility Generator
Sector Indicators
Cht Industrial & Nonutility Generation Market
for Electric Power Transmission &
Distribution Equipment by Type
5 Industrial & Nonutility Generator Market
for Electric Power Transmission
& Distribution Equipment
6 Commercial Indicators
7 Commercial Market for Electric Power
Transmission & Distribution Equipment
Cht Commercial Market for Electric Power
Transmission & Distribution
Equipment by Type
8 Residential Indicators
9 Residential Market for Electric Power
Transmission & Distribution Equipment
Cht Residential Market for Electric Power
Transmission & Distribution
Equipment by Type
10 Government Expenditures & Investment
11 Government/Institutional Market
for Electric Power
Cht Government/Institutional Market for
Electric Power Transmission &
Distribution Equipment by Type
12 Transmission & Distribution Equipment

INDUSTRY STRUCTURE
General
Industry Composition
Market Share
Product Development
Manufacturing
Marketing
Mergers & Acquisitions
Cooperative Agreements

LIST OF TABLES & CHARTS:
1 Electric Power Transmission & Distribution
Equipment Sales by Company, 2010
Cht Electric Power Transmission & Distribution
Equipment Market Share by Company, 2010
2 Capital Spending Patterns: Selected
Electric Power Transmission &
Distribution Equipment Manufacturers
3 Selected Acquisitions & Divestitures
4 Selected Cooperative Agreements

COMPANY PROFILES