South Africa Transformer Markets Research Service Code: M2A6 ...
South Africa Transformer Markets Research Service Code: M2A6 ...
South Africa Transformer Markets Research Service Code: M2A6 ...
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<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 />
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