The Newton-Evans Research Co. has published a set of 15 U.S. high-voltage (HV) equipment market two-page summaries. The new series of market overview reports includes supplier listings, representative products, and estimated market size for each topic, vendor market share estimates and market outlook through 2014. For many topics, equipment/system cost ranges are also provided. Electric utilities accounted for about 88% to 90% of all purchases of HV equipment, used mainly in transmission-class electric power substations.
Unlike other categories in the series, the HV equipment market is characterized by a specialized group of manufacturers, resulting in a high degree of market shares held by these few companies. Economists use two manufacturing concentration ratios. The first, known as the CR4 ratio, is a measure of U.S. market dominance in the hands of four suppliers/manufacturers. The second calculation is the CR8, a measure of U.S. market dominance among up to eight leading manufacturers.
Newton-Evans has found that more than 70% of each of the covered HV equipment markets is shared by four or fewer companies. The CR8 ratio found in this study indicates that the market share for eight suppliers (or fewer) is nearly 100% in each category. This is different from other T&D categories studied this year, wherein significantly lower concentration ratios are found at the CR4 level.
The 15 HV equipment categories include: FACTS and RPC; HVDC; air-insulated substations; gas-insulated substations; air-insulated switchgear; gas-insulated switchgear; HV bushings; HV capacitors; HV circuit breakers; HV disconnect switches; HV circuit switchers; HV instrument transformers; air-core reactors; surge arrestors; and specialized generator circuit breakers.