South Korea’s leading heavy equipment manufacturers, including Hyundai Electric, LS Electric, and Hyosung Heavy Industries, are strengthening their presence in the U.S. market. The growing demand for specialized equipment such as transformers, electric vehicle chargers, and renewable energy devices is fueling market expansion.
Spike in orders due to infrastructure replacement and renewable energy adoption
For Hyundai Electric and Hyosung Heavy Industries, part of the Hyundai Heavy Industries Group, all deliveries are booked through 2025 due to increased demand. LS Electric also gained a foothold in the U.S. market with a major supply agreement in Q2.
These South Korean powerhouses are working overtime and weekend shifts to meet orders, and their U.S. production plants are running beyond their normal capacity. The rapid increase in demand is more than the production capacity of U.S. factories can handle.
Underlying this surge is the United States’ urgent need to upgrade its aging transmission and distribution infrastructure. In addition, the growing installation of solar power and other renewable energy facilities is amplifying the demand for transformers. The market for home EV chargers is also growing rapidly, helping to fuel this surge in demand.
Korean manufacturers capitalize on green initiatives
South Korean producers are benefiting from a two-fold increase in market share, driven by the trend of governments mandating eco-friendly insulators in transformers. In response, Hyundai Electric has switched to using its own eco-friendly insulating oil, and Hyosung is introducing eco-friendly transformers.
Transformers are essentially customized products tailored to the needs of each buyer. As a result, customers often favor vendors that meet their specific needs and are known for reliably meeting delivery dates. South Korean transformer manufacturers have a reputation for reliability in the industry, typically delivering to their loyal customers within seven to eight months, beating the industry average delivery time of 10 months.
LS Electric capitalizes on new plant construction
LS Electric is capitalizing on the construction of new factories by domestic companies to penetrate the U.S. market. U.S. orders in the second quarter are showing an encouraging trend, accounting for 28% of LS Electric’s total orders.
Overall, the initial foray into the U.S. market by Korean heavy electronics companies is turning into solid growth. This growth is being driven by increasing demand for transformers, electric vehicle charging units, and renewable energy devices. With a reputation for reliability and customization of their products, these Korean manufacturers will continue to carve out a niche in the market while meeting the stringent requirements and delivery times of their customers.
- This post referenced https://www.kedglobal.com/energy/newsView/ked202308040020
