Client’s Goals

A US-based global supplier of electric power equipment engaged MarketsandMarkets to secure and grow revenues. For this purpose, a series of problems were defined and solved by our team. We offered insights into the changing revenue sources of client’s clients and their clients along with adjacent markets and industries. Two of the key questions answered for the client were:

• Insights into the potential markets and pricing analysis for reclosers.
• Understanding of drivers, purchasing preferences, barriers to entry (i.e., tariffs, local content, approval requirements, etc.), competitive & customer landscape.

Our Approach

Our analysts offered a complete competitive landscape for auto reclosers market through KnowledgeStore, our AI-driven market intelligence platform, helping the client to have a better product positioning. We recommended a product strategy by gaining understanding of the impact of non-NEMA players in the market and their product acceptance. Further, our team also helped the client with new product developments and ways to improve market penetration by identifying and recommending attractive markets to augment targeted efforts. In addition to this, we offered insights to help the client identify various end-use industries using auto reclosers, then rank these industries based on their share of auto recloser implementation. With the help of our client services team, the client could identify the market size for auto reclosers in particular industries and identify major macroeconomic and microeconomic parameters which impact the auto recloser market. Through this, the client could visualize the impact on a visual matrix representing best possible opportunities for auto reclosers. Conclusively, we suggested the client attractive markets optimal for business strategy

Revenue Shifts Identified

Renewable energy had been growing parallel with the increasing global energy consumption since 2018. The policy drivers for renewable power generation such as energy diversification, decarbonization targets, and local pollution remain robust. Investments in renewable power generation capacity additions are likely to expand the generation capacity by renewables over 920 GW by 2022. The share of renewable energy in the global power generation mix is estimated to rise to 43% by 2022. Hence, the growth for renewable energy sources is a significant opportunity for the existing recloser market players in US and Canada.

Interconnections

Government regulations and incentives are vital for transmission & distribution industry. Any deviation in these regulations will have a direct impact on electrical equipment industry. In past few years, several governments have added performance-based revenue regulations. These regulations have financial structure that may be one-sided where distributors may face penalty for not meeting the standard or two-sided where distributors can receive a bonus for their extra work and contribution. The Mexican government has implemented the performance-based regulation initiatives scheme for the T&D system to develop distributed generation and interconnection. This system also has performance-based compensations to minimize transmission losses and system losses. Also, Australian and UK government runs a similar scheme to boost the usage of reliable products among distributors. These schemes would drive the use of distribution equipment such as reclosers, by distribution operators.

Unknowns Identified

The application of triple-single phase recloser are increasing in North America. These reclosers are rapidly replacing three-phase reclosers in power distribution systems because of their better network reliability and overcurrent protection. Triple-single phase reclosers are widely used because of their advanced features such as SAIFI (System Average Interruption Frequency Index), a system index of the average frequency of interruptions in power supply and SAIDI (System Average Interruption Frequency Index), the average duration of interruptions per consumers during the year. The US Department of Energy, in partnership with National Laboratories, funded the grid modernization Lab projects with USD 80 Million to be spent over 3 years. The developments are expected to be additional revenue source for G&W.

Revenue Impact (RI)

Our recommendations helped the client in prioritizing and identifying the end-user industries for auto reclosers creating a revenue impact of USD 30 Mn. We helped the client in a better product positioning taking into consideration the impact of non-NEMA players in the market along with micro and macro-economic factors.