Photo = LS Electric

 

[Alpha Biz= Reporter Kim Sangjin] KB Securities highlighted HD Hyundai Electric and LS ELECTRIC as the biggest beneficiaries of the growing share of Korean transformers in U.S. imports.

In a report released on the 30th, KB Securities projected that global investment in power grids would expand approximately threefold from $235 billion in 2020 to $636 billion by 2050. This growth is driven by increased demand in the U.S. market, which is leading the expansion of the power equipment industry, and a surge in demand in Europe due to heightened energy security needs following the Ukraine crisis.

KB Securities noted that the rising power demand is fueled by the expansion of renewable energy facilities and the increase in electric vehicle adoption. In particular, the U.S. is making significant investments to replace aging power grids and address new power demands.

The report also pointed out that the booming power equipment market is accelerating supply shortages. Major power equipment manufacturers are cautiously expanding production capacity, causing supply to lag behind the increased demand. The lead times for ultra-high voltage transformers and voltage regulators have increased 2 to 4 times compared to previous periods, with ultra-high voltage transformers having a lead time of 130 weeks, five times longer than NVIDIA GPUs.

KB Securities observed that the proportion of Korean transformers in U.S. imports has increased from 5.2% in 2020 to 17.3% as of April 2024. Korean companies are gaining substantial benefits as the U.S. excludes Chinese transformers for national security reasons, and Europe and Japan focus on domestic transmission and distribution network needs.

 

 

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