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SUMMARY
Increasing Raw Material Outlays Force North American Power Transformer
Suppliers to Hike their Product Prices
Rising costs of raw materials such as steel, copper, and insulation oil is
forcing transformer suppliers in the North American region to increase their
product prices. Since the markets are mature and highly competitive, some
participants are striving to reduce expenditure to retain their market share
and remain competitive. Others have increased the transformer prices and
shifted the burden onto the customers. With the top five companies controlling
approximately 80 percent of the market, new power transformer companies are
also finding it hard to venture into this domain.
This Frost & Sullivan research service provides an overview of and an outlook
for the power transformers markets in the North American region, detailing
revenue forecasts by region and segments along with the market share analyses.
The study segments the markets based on power ratings, types of insulation,
end users, and geographic locations. This information is valuable to both
large and small market participants seeking to position themselves for maximum
return on investment.
Bargaining Power of Consumers Shoots up with the Availability of Wider
Choices
Buyers in the power transformer markets are benefiting from the increasing
number of suppliers and the prevailing competitive conditions. Customers are
becoming very particular about prices, delivery durations, extension of
warranty periods, and after sales services. The markets are undergoing changes
in tune with the increasing pressure on enterprises to control their costs to
stabilize the revenue flow, and suppliers are shifting the manufacturing
locations to countries with lower cost structures to withstand the intense
competition.
In this scenario, manufacturers are saddled with excess capacity on hand that
forces them to aggressively book orders. "This is affecting the profitability
of companies as they need to incur the added expenditure arising out of
increased manpower and additional infrastructure," point out the analysts of
this research service. "Retaining market share is one of the important
challenges that manufactures are facing, and power transformer companies need
to devise ways to reduce the prices to stay competitive."
Aging Infrastructure Offers Abundant Scope for Replacement Markets
Diverse factors such as increasing bottlenecks in power transmissions, load
growth, and electricity policies are driving the power transformers markets in
North America. The markets are expected to gain momentum during 2006 and 2007,
with demand likely to remain steady as the average age of power transformers
increase and utilities catch up with refurbishment and upgrades. "Replacement
opportunities derived from critical end-user sectors such as utilities,
municipal and private electricity companies is likely to present a steady
revenue source for suppliers in the future," state the analysts.
Simultaneously, with rising concern for environment and related regulations,
there is a greater demand for smaller, lighter, and hazard-free transformers
from the urban population areas. Light power transformers allow easy and
flexible transmission and are suitable for handling extreme weather
conditions, dust, and voltage fluctuations. The passage of the much awaited
energy bill for the power industry is expected to boost the supply of a
diverse nature of resources and accelerate capital investment in transmission
infrastructure, which has been overlooked over the last three years. This
factor should subsequently drive the demand for power transformers.
TABLE OF CONTENTS
1 EXECUTIVE SUMMARY
- Executive Summary
- Market Overview
- Revenue Forecasts
- Competitive Environment
2TOTAL NORTH AMERICAN POWER TRANSFORMER MARKET
- Market Overview and Definitions
- Market Overview
- Market Definition and Segmentation
- Industry Challenges
- Market Drivers
- Market Restraints
- Competitive Analysis
- Market Engineering Measurements
- Forecasts and Trends
- Total Revenue Forecasts
- Revenue Forecasts by Geographic Region
- Revenue Forecasts by Insulation Type
- Market and Technology Trends
- Pricing Trends
- Distribution Channels
- Frost & Sullivan Awards
- Market Leadership Award
- Best Bang for the Buck
3 NORTH AMERICAN MEDIUM POWER TRANSFORMER MARKET
- Forecasts and Trends
- Market Overview
- Revenue Forecasts
- Competitive Analysis
- End-user Segmentation
- Market Share and Competitive Structure Analysis
4 NORTH AMERICAN LARGE POWER TRANSFORMER MARKET
- Forecasts and Trends
- Market Overview
- Revenue Forecasts
- Competitive Analysis
- End-user Segmentation
- Market Share and Competitive Structure Analysis
5 APPENDIX
- Terms and Definitions
- Decision Support Database
- Length of Transmission Network
- Transmission and Distribution Losses
- Installed Capacity
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