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Australia and New Zealand Switchgear and Transformer Markets Powering Up - New analysis from Frost & Sullivan, ANZ Switchgear and Transformer Markets, reveals that the market earned revenues of AU$1,544 million (US$1,296 million) in 2006 and estimates this to reach AU$1,699 million (US$1,426 million in 2013)
Australia and New Zealand Switchgear and Transformer Markets Powering Up

 

PRZOOM - /newswire/ - Sydney, Australia, 2007/08/16 - New analysis from Frost & Sullivan, ANZ Switchgear and Transformer Markets, reveals that the market earned revenues of AU$1,544 million (US$1,296 million) in 2006 and estimates this to reach AU$1,699 million (US$1,426 million in 2013).

   
 
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The current trend of replacing or upgrading old transformers by the power transmission utilities coupled with the boom in the mining industry has seen growth of the switchgear and transformer market in the ANZ region. The building of new substations in the region to meet the increasing demand for electricity is also contributing to the growth of the market.

New analysis from global growth consulting company, Frost & Sullivan (energy.frost.com), ANZ Switchgear and Transformer Markets, reveals that the market earned revenues of AU$1,544 million (US$1,296 million) in 2006 and estimates this to reach AU$1,699 million (US$1,426 million in 2013).

"The efforts of utilities to extend the lifetime of their equipment by increasing maintenance spending and refurbishment did not show expected results," notes Frost & Sullivan industry analyst Mr. M. R. Srivatsan. "However, their new strategy of replacing and upgrading the assets has resulted in increased demand in switchgear and transformers market in Australia."

Growing investment in the mining industry is also expected to drive the demand for transformers and high, medium, and low voltage switchgears in the ANZ region. Moreover, investments made in the power generation sector is likely to have a cascading effect on increasing transmission and distribution infrastructure to connect supply and demand points in the power industry, stimulating demand for transformers and switchgear by the utilities in the region.

However, local production capacities are inadequate to meet the current surge in demand. Manufacturers are hesitant to increase their production capacities as they fear the market may subdue in the future resulting in overcapacity and over stocking.

This gap in demand-supply chain is encouraging new participants from low-cost countries to increase their market presence in the ANZ region. Major importers are looking to tap into the opportunities available in industrial and infrastructure end-user segments in ANZ region, where barriers to entry are relatively lower compared to utilities.Importing transformers from other countries has led to the increase in delivery lead time.

Although the market is attractive, it is not "open for all", as the procurement strategies of the power utilities are highly driven by standards and local market experience of manufacturers in serving the utilities in the region.

"Manufacturers who source transformers from manufacturing facilities in low-cost countries must educate their end-users and convince them that engineering and design of the equipment have been done in-house," says Mr. Srivatsan. "In addition, end-users need to be assured on the after-sales service capabilities of the manufacturers."

ANZ Switchgear and Transformer Markets is part of the Energy & Power Growth Partnership Service, which includes research services in the following: India switchgear markets, China switchgear markets, Southeast Asia switchgear markets, North America switchgear markets, China and Taiwan transformer markets, and India transformer markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the ANZ Switchgear and Transformer Markets then send an email to Sharmin Jassal, Corporate Communications, at sharmin.jassal[.]frost.com with your full name, company name, title, telephone number, fax number, and email address. We will send you the information through email upon receipt of the above information.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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Australia and New Zealand Switchgear and Transformer Markets Powering Up

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Contact: Sharmin Jassal 
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