Amid South Korean power equipment companies expanding into global markets, this year is expected to see an increase in the proportion of orders from the European region following the previously focused U.S. market. This is due to significant investments in eco-friendly and renewable energy, as well as growing demand for replacing aging power grids. In contrast, the proportion from the Middle Eastern region, where Chinese companies are entering, is likely to decrease, according to analysis. According to the power equipment industry on the 27th, major power equipment companies such as HD Hyundai Electric, Hyosung Heavy Industries, and LS ELECTRIC (LS ELECTRIC) are forecasting increased sales in Europe this year. Kim Young-ki, HD Hyundai Electric CEO, said at an institutional investor meeting held on the 14th, “Currently, the U.S. accounts for 40% of order share, the Middle East 20%, Europe 10%, and the domestic market 10%,” adding, “Going forward, Europe’s share is expected to grow rapidly and surpass the Middle East.” HD Hyundai Electric recorded sales of 127.5 billion Korean won in the third quarter of last year in Europe, centered on eco-friendly transformers and high-voltage circuit breakers, growing 84.5% compared to the previous quarter and 76.1% compared to the same period the previous year. Order volume also reached 164 million dollars (approximately 237.4 billion Korean won), increasing 49.1% and 168.9% compared to the previous quarter and the same period the previous year, respectively. Hyosung Heavy Industries also signed contracts worth approximately 230 billion Korean won in the United Kingdom, Sweden, Spain, and other countries in December 2025, expanding its order intake in Europe. Hyosung Heavy Industries has also established an R&D base in the Netherlands to strengthen competitiveness in next-generation products such as eco-friendly gas-insulated switchgear (GIS). LS ELECTRIC secured a contract worth 62 billion Korean won with RWE, Germany’s largest private power generator, to supply ultra-high-voltage transformers in early this month, marking its entry into the European market. Europe is a hub for eco-friendly and renewable energy transitions. It is also considered one of the most severely aging power grid regions, alongside the U.S. In April of last year, large-scale blackouts occurred in Spain, Portugal, the Czech Republic, and other countries. According to market research firm Mobility Foresights, Mobilityforesights, the European power grid market is projected to grow at an average annual rate of 9.2%, from 312.4 billion dollars (approximately 458 trillion won) in 2025 to 528.9 billion dollars (approximately 775 trillion won) in 2031. The growth is attributed to increased power consumption, expanded adoption of renewable energy, and demand for replacing aging power grid infrastructure. In contrast, the proportion of orders and sales from the Middle East is decreasing. According to the Korea International Trade Association, South Korea’s transformer exports to the Middle East in 2025 amounted to 269 million dollars (approximately 394.4 billion won), a 6.3% decrease compared to the previous year. This marks a shift from the previous trend of increases of 86.6% in 2023 and 17.5% in 2024 compared to their respective previous years. Exports to Kuwait decreased by 19.8%, and those to Qatar fell by 83.3%. Industry sources particularly expect that competition with Chinese power equipment companies in the Middle East will begin in earnest. As Chinese companies with strong cost competitiveness start entering the Middle East, South Korean companies are focusing on high-value-added products where they hold a technological edge over China, such as ultra-high-voltage circuit breakers. An industry source said, “As Chinese companies actively enter the Middle Eastern market, we are shifting our transformer product order regions toward Europe,” adding, “In Europe, there is still low trust in Chinese technological capabilities, so we maintain a competitive edge.” Kim Kwang-sik, a researcher at Kyobo Securities, said, “Chinese companies are increasingly entering the Middle East and some Eastern European countries,” adding, “Since premium products still do not use Chinese products, the atmosphere is to focus order strategies on those products.” (ICE SEOUL)

Fonte notizia: The Chosun Daily