State of the Market
Global trade in transmission and distribution (T&D) equipment exports saw an overall decline of 4 percent reflective of the global downward economic trend over the last year of available global export data (2014). This reflects a return to pre-2011 annual global trade revenues following two years of consecutive year-toyear declines in 2013 and 2014, and reduces the CAGR to 9 percent for the previous decade. However, according to the International Energy Agency, approximately $5 trillion will be invested in T&D infrastructure globally from 2015-2030.Thus suggesting that despite a downward trend in global T&D equipment trade, opportunities for U.S. exporters will persist.
T&D Equipment SubSector Rankings (Top 20)
- Saudi Arabia
- United Kingdom
Overall, U.S. T&D equipment exports have performed well in recent years. Total export revenues for the T&D equipment sector reached nearly $2.0 billion in 2015. Exports to Canada and Mexico accounted for almost 45 percent of this total, and the top ten markets makeup over two-thirds. U.S. T&D equipment exports declined 4 percent year-to-year from 2014, but still reflect a long-term growth trend with a 9 percent CAGR over the previous decade. U.S. global market share dropped to approximately 8 percent. As Figure illustrates, top U.S. T&D export markets do not completely align with those of all goods. Relative to other industries, U.S. T&D equipment manufacturers have captured significant returns in nations like Saudi Arabia and Colombia.
The T&D equipment sub-sector rankings focus on markets with high growth in the products and services
necessary for the build-out, modernization and automation of T&D networks. For example, trade in T&D equipment receives a higher weight in this ranking, as does electricity demand growth, energy supply investment and other factors driving the buildout of the grid. The top T&D equipment markets are, therefore, more likely to be less-mature smart grid markets. Investments in these nations are more focused on the foundational grid modernization that is essential to the development of more advanced Smart Grid ICT that is still to come. Countries that have been long-standing markets for U.S. suppliers of the electric grid rank higher in this sub-sector. Additionally, Asian markets, where connecting new populations to the electric grid is a priority, will perform well in the T&D equipment sub-sector.
Source: International Trade Administration