Global demand to rise 4.4% annually through 2011 World transmission and distribution electric power equipment demand is forecast to rise 4.4 percent per year through 2011 to $105 billion. The largest regional markets for electric power equipment will remain the Asia/Pacific region and North America, with Western Europe also important. While the main product categories -- transformers, and switchgear and switchboard apparatus -- will register similar gains, certain products within these categories will perform more favorably than others.

Industrial and commercial market to see best gains Strongest gains in demand for electric power equipment are forecast for the industrial and commercial sector. Demand in the electric utilities sector will continue to see the slowest gains, a result of deregulation in the electricity sectors in virtually all parts of the globe. Competition from industrial cogeneration, independent power providers (IPPs) and renewable energy sources will force utilities to become more competitive via a combination of privatization, production cuts, and electricity purchases from IPPs and industrial producers with surpluses. Additional Information Asia/Pacific market to be fastest growing region

The Asia/Pacific region is projected to register the strongest gains in electric power equipment demand through 2011 among all regions (by a significant margin). The region is home to more than 55 percent of the world's population, with a sizable portion of these people currently living in rural areas often devoid of electricity. Robust economic growth in developing countries such as China and India, combined with rapid urbanization and growth in fixed investment spending (especially in infrastructure such as roads and electricity), will work to boost demand for electric power equipment in the region.

The developed Japanese market, however, will continue to register below world-average gains through 2011. The North American and West European markets will both perform below the global average. Both regions have relatively large and mature markets for electric power equipment, with a sizable majority of these regions' inhabitants already living in urbanized areas. Even rural inhabitants in North America and Western Europe typically have ready access to national electric grid supplies. In Western Europe, growth in electric power equipment demand will be further hampered by negligible gains in population levels through 2011.

Study coverage

These and other findings are contained in the new Freedonia industry study, World Electric Power Equipment, available for $5400. It presents historical demand data for 1996, 2001 and 2006 plus forecasts for 2011 and 2016 by electric power equipment product, market, and global region, as well as for 17 countries.

This study also considers market environment factors, assesses the industry structure, evaluates company market share and pro- files 26 industry competitors worldwide.