MarketLine Industry Profile Global Electrical Equipment April 2013 Reference Code: 0199-0963 Publication Date: April 2013 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page 1
EXECUTIVE SUMMARY Market value The global electrical equipment market grew by 7.3% in 2012 to reach a value of $245,690.9 million. Market value forecast In 2017, the global electrical equipment market is forecast to have a value of $308,384.3 million, an increase of 25.5% since 2012. Category segmentation Wind turbines is the largest segment of the global electrical equipment market, accounting for 31.2% of the market's total value. Geography segmentation Asia-Pacific accounts for 40.9% of the global electrical equipment market value. Market share GE is the leading player in the global electrical equipment market, generating a 7.6% share of the market's value. Market rivalry The global electrical equipment market has some large scale incumbents, namely Siemens, Schneider Electric, GE and Alstom which intensifies rivalry, however the market has produced some good growth in recent years and as such rivalry is assessed as moderate. MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page 2
MARKET OVERVIEW Market definition The global electrical equipment market includes the global electrical components and equipment market, and the global heavy electrical equipment market. The global electrical components and equipment market is deemed to be the revenues accruing to companies from the sale of electric power cables and wires and electrical switchgear. The market does not include electronic components or equipment classified in the heavy electrical equipment sub-industry. The global heavy electrical equipment market is deemed to be the revenues accrued by manufacturers from the production of power-generating equipment and other heavy electrical equipment, including power turbines, heavy electrical machinery intended for fixed-use and large electrical systems. Any currency conversions used in this report are at constant 2012 annual average exchange rate. For the purposes of this report, the global market consists of North America, South America, Western Europe, Eastern Europe, MEA, and Asia-Pacific. North America consists of Canada, Mexico, and the United States. South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela. Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine. Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand. Middle East-Africa (MEA) comprises Egypt, Israel, Nigeria, Saudi Arabia, South Africa, and United Arab Emirates. Market analysis The global electrical equipment market dropped into decline in 2009 but recovered strongly the year after which continued through to 2012. The market is expected to produce moderate but decelerating growth through to the end of the forecast period in 2017. The global electrical equipment market had total revenues of $245,690.9m in 2012, representing a compound annual growth rate (CAGR) of 4.8% between 2008 and 2012. In comparison, the European and Asia-Pacific market produced respective values of $40,293.3 million and $100,487.6 million in 2012. The wind turbines segment was the market's most lucrative in 2012, with total revenues of $76,575.7m, equivalent to 31.2% of the market's overall value. The power cables segment contributed revenues of $61,793.5m in 2012, equating to 25.2% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated compound annual growth rate of 4.7% for the five-year period 2012-2017, which is expected to drive the market to a value of $308,384 million by the end of 2017. MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page 3
LEADING COMPANIES Alstom Table 1: Alstom: key facts Head office: 3 Avenue Andre Malraux, 92309 Levallois-Perret, Cedex, FRA Telephone: 33 1 4149 2000 Website: www.alstom.com Financial year-end: March Ticker: ALO Stock exchange: Paris SOURCE: COMPANY WEBSITE M A R K E T L I N E Alstom develops, constructs, markets and provides systems, components and customer support to the global infrastructure markets in the fields of power generation and transport markets. The group is one of the leading manufacturers of integrated power plants, air quality control systems, very high speed and high speed transport and electrical grids. It operates in 100 countries with major presence in France, the US, Europe and Asia Pacific. The group operates its business through four segments: thermal power, transport, grid, and renewable power. The thermal power segment designs, manufactures, and supplies a broad range of products and systems in the power generation industry such as: integrated power plants, steam power plants, combined cyclepower plants. It also offers engineered packages for new plants including power island and steam add-on. The segment also manufactures standalone equipment such as steam turbines, generators, boilers, gas turbines, HRSG, emission control systems, auxiliaries like air preheaters, mills for coal and minerals grinding, CO2 capture and storage systems. The group's offerings also include automation and control solutions for equipment and power plants. The segment operates through over 200 locations in 70 countries and over 30 centers of technical expertise. The transport segment serves the urban transit, the regional/intercity passenger travel markets, and the freight markets all over the world with rail transport products, systems, and services. Alstom designs, develops, manufactures, commissions, and maintains trains. It also develops and implements system solutions for rail control. The group also designs and manages the creation of new railway lines, as well as offers customers maintenance and renovation programs to keep their assets safe and productive. Alstom serves the freight-by-rail segment with locomotives, rail control systems and parts as well as maintenance support. Alstom provides large engineered turnkey transmission and industrial power supply projects, such as high voltage alternative current (HVAC) substations, specialized power electronics-based energy supplies (high voltage direct current known as HVDC) and grid interconnection solutions. It also provides mission-critical solutions to manage electrical transmission and distribution grids, including telecoms and energy trading management. The segment operates through over 90 manufacturing or engineering sites worldwide and 50 local service centers and 16 technical institutes in over 30 countries. Alstom also designs, develops, delivers and supports software solutions for transmission and distribution of electrical utilities, market systems operators and energy market participants. In addition to its software solutions, Alstom Grid also offers a full suite of telecom solutions for utilities, integrating high bandwidth services into utilities telecom. The group's renewable power segment offers wide range of renewable power generation solutions including integrated power plants for hydroelectricity, wind, geothermal, biomass, solar and all types of turbines, generators. It also offers various services including plant modernization, maintenance and operational support. MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page 4
Within this segment, Alstom provides hydropower solutions and services through Alstom Hydro. It offers full range of hydro turbines, with maximum power capacities of 1,000 MW (megawatt). This range includes Francis, Kaplan, Pelton, bulb and pump turbines. The segment's generator line-up includes large, medium and small hydro generators, bulb generators, motor-generators, ring motors and excitation systems. Alstom also designs and manufactures hydromechanical equipment for hydro power plants as well as for waterways and irrigation systems. Alstom Wind designs, assembles, installs and commissions a wide range of onshore wind turbines. Alstom offers integrated wind farm solutions, encompassing site development activities, system or key component design and manufacturing, assembly, installation and services. Its operations covers more than 3,100 MW of wind power in 122 wind farms (in Spain, the UK, France, Portugal, Ethiopia, Morocco, Italy, Brazil, the US, Turkey, Japan and India). The group is also focused on development of technologies for new energies such as geothermal, solar thermal, biomass, tidal stream energy and wave energy. Alstom has built a total geothermal capacity of more than 350 MW to date and offers tailored plant configurations for 50 hertz (Hz) and 60 Hz electricity markets. The group also provides customized industrial turbines and generators adapted to the demands of biomass firing. Alstom is in the process of building its first tidal turbine generator with a capacity of up to one megawatt. Key Metrics The company recorded revenues of $27,732 million in the fiscal year ending March 2012, a decrease of 4.7% compared to fiscal 2011. Its net income was $1,018 million in fiscal 2012, compared to a net income of $682 million in the preceding year. Table 2: Alstom: key financials ($) $ million 2008 2009 2010 2011 2012 Revenues 23,522.5 26,069.8 27,337.2 29,108.2 27,732.3 Net income (loss) 1,199.2 1,555.4 1,676.4 681.7 1,018.4 Total assets 29,695.3 33,728.4 36,140.8 41,225.7 43,192.8 Total liabilities 26,572.1 29,716.2 30,435.4 35,449.4 37,024.2 Employees 76,000 71,511 68,858 85,225 92,847 SOURCE: COMPANY FILINGS M A R K E T L I N E MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page 5
APPENDIX Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, crosschecked and presented in a consistent and accessible style. Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, MarketLine s in-house databases provide the foundation for all related industry profiles Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends MarketLine aggregates and analyzes a number of secondary information sources, including: - National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases Modeling & forecasting tools MarketLine has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page 6
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