25.10.2014 Views

South Africa Transformer Markets Research Service Code: M2A6 ...

South Africa Transformer Markets Research Service Code: M2A6 ...

South Africa Transformer Markets Research Service Code: M2A6 ...

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<strong>South</strong> <strong>Africa</strong> <strong>Transformer</strong> <strong>Markets</strong><br />

<strong>Research</strong> <strong>Service</strong> <strong>Code</strong>: <strong>M2A6</strong> - 14<br />

Completion date: September 2008<br />

1


Background to Study Slide 03<br />

<strong>Research</strong> Aims and Objectives Slide 04<br />

Scope of <strong>Research</strong> Slide 05<br />

Respondent Scope Slide 06<br />

Methodology followed Slide 07<br />

<strong>Research</strong> Deliverables Slide 08<br />

Benefits of <strong>Research</strong> Slide 10<br />

Frost & Sullivan Contacts Slide 11<br />

Content


Background to Study<br />

The <strong>South</strong> <strong>Africa</strong>n electricity industry is<br />

in a phase of rapid change driven by<br />

the current electricity crisis<br />

This is primarily as a result in<br />

underinvestment in power generation<br />

projects over the last 10 years in <strong>South</strong><br />

<strong>Africa</strong><br />

The crisis is further exacerbated by<br />

underinvestment in transmission and<br />

distribution infrastructure<br />

As a result, the <strong>South</strong> <strong>Africa</strong>n<br />

Government and Eskom have identified<br />

several mitigating strategies that<br />

expected to help reduce electricity<br />

demand while generation capacity is<br />

increased<br />

This development creates a favourable<br />

environment for the transformer market<br />

to strive as the country needs to<br />

significantly reduce its current 8-percent<br />

energy losses if it is to meet the targets<br />

of the DSM<br />

This research service presents a<br />

comprehensive analysis of the high,<br />

medium, and low voltage power and<br />

distribution transformers markets in<br />

<strong>South</strong> <strong>Africa</strong><br />

M2D5-14<br />

3


<strong>Research</strong> Aims and Objectives<br />

An assessment of the revenues and<br />

dynamics of the transformer<br />

market in <strong>South</strong> <strong>Africa</strong><br />

This F&S research service aims at<br />

providing:<br />

An understanding of the<br />

competitive environment<br />

An analysis of factors such as:<br />

1. Market drivers and restraints<br />

2. Technological trends<br />

3. Customer requirements<br />

4. Buying behaviour<br />

5. Factors influencing pricing strategy<br />

6. Distribution channel analysis<br />

7. Competitive structure<br />

8. Market intensity<br />

M2D5-14<br />

4


Scope of <strong>Research</strong><br />

Geographic Scope<br />

This research service focuses on <strong>South</strong> <strong>Africa</strong>. The market covers all<br />

nine provinces with in <strong>South</strong> <strong>Africa</strong>.<br />

Product Scope<br />

Power transformers:<br />

Power transformers are static electrical equipment that transfer<br />

power by converting the power level voltages or phase configuration<br />

to a specific level/configuration.<br />

Power transformers are used in electronic circuits and come in many<br />

different types and applications.<br />

They are widely used for electrical isolation, power distribution, and<br />

control applications and operate on the principle of magnetic<br />

induction between coils.<br />

Distribution <strong>Transformer</strong>s<br />

Distribution transformers further reduce the transmission voltage to<br />

useable levels for final power utilization<br />

M2D5-14<br />

5


<strong>Research</strong> and Respondent Scope<br />

Frost & Sullivan conducted over 30 in-depth interviews with key participants in the IPPs markets across West<br />

<strong>Africa</strong> using structured questionnaires. This questionnaires contained both opened ended and ranking scale<br />

questions aimed at gaining enough information to meet the said aims and objectives.<br />

Organisation Type Target Designations Type of Information<br />

Original Equipment<br />

Manufacturers (OEMs)<br />

Directors, Marketing and Business<br />

Development Managers, Chief<br />

Executive Officers, Project<br />

Managers<br />

Market size, Drivers and Restraints,<br />

Challenges and Critical Success Factors,<br />

Competitive Environment, Future Market<br />

Forecasts, distribution Channel<br />

Utilities, the industrial<br />

sector, the commercial<br />

sector etc.<br />

Directors, Chief Executive Officers<br />

and Project Managers (or Country<br />

Directors)<br />

Strategic views on the transformer<br />

market, Purchasing Behaviours<br />

M2D5-14<br />

6


Methodology Followed<br />

This research service provides a strategic analysis of the<br />

market for IPPs in West <strong>Africa</strong> and follows the principle of Frost<br />

& Sullivan's Market Engineering research methodology. This<br />

measurement-based methodology focuses on market<br />

measurement, analysis, forecasting, strategy development and<br />

monitoring.<br />

The base year of 2007 has been used for this research and a<br />

forecast period of seven years from 2008 until 2014 was<br />

projected.<br />

An exchange rate of 1 US Dollar = 7.68 <strong>South</strong> <strong>Africa</strong>n rand<br />

was assumed for this research.<br />

Frost & Sullivan’s<br />

Market Engineering <strong>Research</strong> Methodology<br />

This study is based on thorough secondary and primary research principles. Over 30 in-depth interviews<br />

were conducted with top-level management of the power project developers, state utilities, and other<br />

significant stakeholders such as the financial institutions.<br />

Frost & Sullivan also held discussions with significant authorities in the government and the regulatory<br />

bodies to understand the context in which the West <strong>Africa</strong> IPPs operate.<br />

M2D5-14<br />

7


Examples of <strong>Research</strong> Deliverables 1/2<br />

Top Industry Challenges<br />

This section identifies the key<br />

challenges that are faced by the<br />

industry.<br />

<strong>Transformer</strong> Market: Key Market Dynamics (<strong>South</strong> <strong>Africa</strong>),<br />

2006-2014<br />

Price volatility of transformer<br />

raw material<br />

Lead Time<br />

The challenges have an impact on<br />

the industry and are integrated into<br />

every phase of the Market<br />

Engineering system.<br />

<strong>Transformer</strong> protection<br />

And maintenance factors<br />

2006-2014<br />

2014<br />

Ability to meet the<br />

increasing demand<br />

for transformer<br />

equipment<br />

These challenges have been<br />

identified based on research and<br />

information from manufacturers<br />

and suppliers in the <strong>South</strong> <strong>Africa</strong>n<br />

transformer market.<br />

High demand of<br />

transformers<br />

and parts<br />

Large market shares of<br />

leading competitors limit<br />

opportunities for smaller<br />

companies<br />

The analysis of the impact of these<br />

challenges is put into a time frame<br />

context as it directly affects the<br />

market forecasts and the<br />

development of market strategies<br />

by industry participants.<br />

Source: Frost & Sullivan<br />

M2D5-14<br />

8


Examples of <strong>Research</strong> Deliverables 1/2<br />

Technology Trends<br />

Market Engineering Measurements<br />

<strong>Transformer</strong> Market: Technology Trends (<strong>South</strong><br />

<strong>Africa</strong>), 2007<br />

Energy-Efficient <strong>Transformer</strong>s:<br />

<strong>Transformer</strong> Market: Market Life Cycle (<strong>South</strong> <strong>Africa</strong>), 2007<br />

1) Reduction of Technical<br />

Losses<br />

2) Reduction of the total cost<br />

of ownership<br />

Drying Technology:<br />

1) Extension of the lifetime<br />

of the transformers<br />

<strong>Transformer</strong> Market:<br />

Technology Trends<br />

A v e r a g e S e c t o r A c t iv it y<br />

<strong>South</strong> <strong>Africa</strong>n<br />

<strong>Transformer</strong> Market<br />

Market Development Market Maturity<br />

Market Decline<br />

Time<br />

Condition Monitoring for<br />

Source: Frost & Sullivan<br />

<strong>Transformer</strong>s:<br />

1) Prolonging the life of<br />

costly assets such as transformers<br />

M2D5-14<br />

9


Benefits of <strong>Research</strong><br />

This Frost & Sullivan research service addresses the need for information during a time when the market for<br />

transformers in <strong>South</strong> <strong>Africa</strong> is undergoing robust growth as a result of favourable economic conditions and<br />

increasing demands for electricity<br />

Original Equipment Manufacturers (OEMs)<br />

End-users<br />

An in-depth end -user requirements that will allow<br />

OEMs to further expand their customer base<br />

Detailed competitive force analysis that will allow<br />

OEMs to better understand the industry structure<br />

Market share analysis, which identifies major<br />

participants<br />

Detailed forecasts and analysis for designing<br />

long-term growth strategies<br />

Find out how other customer groups<br />

throughout <strong>South</strong> <strong>Africa</strong> deal with their OEMs<br />

Identification of which OEMs have the best<br />

customer service, technical knowledge,<br />

quality of work and other issues<br />

Use the data as a bargaining tool when<br />

negotiating new transformer contracts<br />

M2D5-14<br />

10


Frost & Sullivan Contacts<br />

Phil Howarth<br />

Operations Director<br />

Frost & Sullivan <strong>Africa</strong><br />

+27 21 680 3269<br />

phil.howarth@frost.com<br />

Cornelis van der Waal<br />

Program Manager<br />

Frost & Sullivan<br />

+27 21 680 3266<br />

cornelis.vanderwaal@frost.com<br />

Kate Howarth<br />

Sales Manager<br />

Frost & Sullivan <strong>Africa</strong><br />

+27 21 680 3261<br />

kate.howarth@frost.com<br />

Jeannot Boussougouth<br />

Industry Analyst<br />

Energy and Power Systems<br />

+27 21 680 3265<br />

jeannot.boussougou@frost.com<br />

M2D5-14<br />

11

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!