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Rise in Energy Consumption Powers Brazilian Distribution Transformers Market, Finds Frost & Sullivan


News provided by

Frost & Sullivan

04 Dec, 2012, 14:54 GMT

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- Growth of national economy and industrial activity boosts utilities' investments in the market

SAO PAULO, Dec. 4, 2012 /PRNewswire/ -- The declaration of Brazil as the venue for the 2014 FIFA World Cup and the 2016 Olympic Games has required power utilities to ensure an uninterrupted supply of electricity during these events. They are, therefore, investing in necessary infrastructure, such as distribution transformers, to cope with the high demand. Sustainable demand for organic energy and the ensuing expansion of generation capacity for wind and hydro power have further made the distribution transformers market more investment-friendly, despite the global downturn.

New analysis from Frost & Sullivan (http://www.energy.frost.com), Growth Opportunities in the Brazilian Distribution Transformers Market, finds that the market earned revenues of over $505.9 million in 2012 and estimates this to reach $685.0 million in 2017. The study covers oil-type, dry-type, and vegetable oil-filled distribution transformers.

New power quality standards in Brazil require power companies to deliver a minimum level of electricity supply to end users. This necessitates investments in distribution transformers. Moreover in the long term, the law will encourage the replacement of old equipment with more efficient units, and even offer incentives to power utilities.

"Major transmission and distribution grid reinforcements will also improve the market's prospects, though the trend is expected to slow down beyond 2014," said Frost & Sullivan Business Unit Leader Juliana Passadore. "The requirement from industrial and power distribution segments will rise marginally, in line with the country's gross domestic product (GDP)."

Moreover, the shift toward dry-type technologies will expand the product portfolio of multinational and national companies, increasing the scope of the distribution transformer market.

However, international firms will not find it easy to penetrate the market. Fluctuating currencies, the need for high economies of scale, different technical specifications for products, and varied equipment stipulations in the auctioning process are likely to hamper their prospects.

In this intensely competitive market, manufacturers need to create a specific demand plan, broaden product portfolio, increase production efficiency, and focus on post-sales services to clients. Offering economical solutions that comply with the highest technical standards is crucial to gain competitive advantage.

"Consolidating partnerships with engineering, procurement, and construction (EPC) companies while sustaining local production will also help in winning strategic accounts," noted Passadore. "Suppliers must aggressively promote the efficiency and lower costs associated with the production and logistics of distribution transformers."

Finding the right combination of technical standards, procurement planning, and pricing will provide value to clients and lead to strong revenue growth.

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Growth Opportunities in the Brazilian Distribution Transformers Market is part of the Energy & Power Growth Partnership Services program, which also includes research in the following markets: T&D Maintenance Services in Asia Pacific, European Nuclear Power Sector, Chinese Power Distribution Market, South African High-voltage Transformers Market, European Substation Automation Market and Impact of Smart Grids, and Wind Power Generation Market in Argentina. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion

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Subscribe: Newsletter on "the next big thing"

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Growth Opportunities in the Brazilian Distribution Transformers Market
NB95-14

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

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