7 November, 2019. Ellicott City, Maryland. Based on the findings obtained in a recently completed study of the distribution transformer market in the United States, Newton-Evans provides the following information summary.
Distribution Transformer Market Size Estimates
The aggregated U.S. market for three groupings of distribution transformers stood at about $3 Billion in 2018 as seen in the above chart. The market was segmented by Newton-Evans as shown here to include residential pole and pad mount units; dry type transformers, and small power/large distribution transformers ranging from 1-25 MVAs.
Institutional Barriers to U.S. Market Entry for Distribution Transformers
The third quarter 2019 Newton-Evans study included survey questions for both end-users and suppliers about any institutional barriers they see to potential market entry by non-North American manufacturers.
Among utility respondents, nearly one-half indicated compliance with recently enacted DOE regulations and recommendations for energy efficient distribution transformers as being a key barrier to market entry by foreign-based suppliers (outside of the NAFTA region). One quarter indicated “buy American” programs at their utility was also a deterrent. About 1 in 5 respondents indicated that Underwriters Lab certification was also important, and several respondents had other supporting comments to offer.
Suppliers commented that the enactment of tariffs also served as a deterrent to foreign manufacturers, while one of the largest domestic suppliers of overhead distribution transformers cited the importance of rapid post-storm response times as being a key factor in re-supplying utilities quickly. Another major U.S. transformer manufacturer cited three factors: UL Certificate requirement, DOE Efficiency requirements and “Buy American” initiatives.