Developing Countries to Lead the Phase Shifting Transformer Market Growth

Thursday 23 February 2012, Amsterdam

Drivers, restraints and revenue forecast, average pricing, market share analysis and volume sales are covered for the global market. The report covers seven key countries for the PST market. Revenue forecast, average pricing, market share analysis, volume sales analysis and regulations are covered at the country level. The report also covers key drivers and restraints impact analysis for the PST market at country level.

Developing Countries to Lead the Phase Shifting Transformer Market Growth

The growth of the Phase Shifting Transformer (PST) market is likely to be driven by developing economies such as China, India, Brazil, and Saudi Arabia, with upcoming long-distance transmission network projects. However, the market in certain developed countries such as the US, Japan, and Australia is expected to decline in the long term future, thereby restricting the scope of future market growth in these countries. In 2010, India and China’s combined market size was valued at $161.7m in terms of order intake. India had a total market share of 20.2%, followed by China contributing 16.3%, whereas Canada and the US had a market share of 9.5% and 8.7% respectively. During the forecast period 2011-2020, India’s market size is expected to increase at a Compound Annual Growth Rate (CAGR) of 12.5%. The main drivers influencing the PST sales in India are plans for capacity addition to meet growing electricity demand, planned investments in the transmission sector, and growth of the replacement market. However, in the case of China, the market size is expected to increase until 2015-2016; thereafter it is estimated that the market size will start declining, due to the planned investments under other advanced technologies such as HVDC, FACTS and Smart Grid.

See Figure: Phase Shifting Transformer Market, India and China, Market Size by Order Intake ($m), 2010-2020

Increasing Focus on Advanced Technologies to Effect the PST Growth

The global PST market is primarily driven by three key factors - an increase in the power installed capacity of developing and developed countries, a strong growth of the replacement market, and large investments planned in the transmission sector under government plans and policies. However, in the later part of the next decade, some developed countries such as Japan, the US and Australia are expected to witness a decline in PST sales. It is thought that these countries will focus more on investing in advanced technologies such as FACTS, SVC, HVDC systems and the development of smart grid. Even in developing countries such as India, China, Saudi Arabia and Brazil, more advanced technologies are expected to limit the growth of the PST market. Other factors that will affect the PST market are government plans and policies, rising raw material prices, and financial constraints of utilities.

Price, Considered the Most Significant Buying Criteria by Most Buyers

Price was ranked as the topmost selection criteria by PST buyers. Other important factors affecting the PST market are the credibility of the supplier, and time taken to deliver the product. China, with its low cost labour advantage, has one of the lowest average PST prices. Canada, South Africa and Saudi Arabia have comparatively higher prices. In India the average price of PST is slightly higher in comparison to the US, Russia and China.