The surging power demand from AI, data centers, and electric vehicles is leading to a global boom in the power industry ecosystem. With a surge in power plant investments, the demand for equipment such as power turbines, transformers, and cables has also skyrocketed, outstripping supply. Tesla CEO Elon Musk highlighted this issue in an April interview, noting that while last year’s AI development faced a shortage of Nvidia’s neural network chips, now there is a shortage of transformers. Industry experts predict that the power infrastructure boom, driven by the large-scale market in the U.S. needing equipment upgrades, will continue until 2030.
Korean companies like Doosan Enerbility (gas turbines) and HD Hyundai Electric (power transformers) are strengthening their presence in the global market with their technological advancements in power infrastructure equipment. The power equipment market, over 200 years old, has traditionally been dominated by major companies from advanced countries like GE and Siemens. However, the global “energy rush” has overwhelmed these companies’ capacity to meet the soaring demand.
Doosan Enerbility is poised to secure a gas turbine contract for the Haman Combined Cycle Power Plant, which Korea Midland Power is planning to build in South Gyeongsang province. The gas turbine market has shifted to favor suppliers due to the demand surge, making it nearly impossible to predict delivery dates from leading companies like GE and Siemens, resulting in Doosan Enerbility being the sole bidder. Since successfully localizing large gas turbines for power generation in 2019, this will be Doosan Enerbility’s fourth contract if secured. An industry insider noted, “The rapid increase in electricity demand is causing cracks in what was once an impregnable market.”
As energy demand continues to surge, power-related companies have become highly valuable. According to the Korea International Trade Association, transformer exports in the first quarter of this year reached $544.82 million, an 81.9% increase from the same period last year. Exports of cables, including high-voltage cables, also grew by 45.7% to $675.71 million in the first quarter. Companies like LS Electric, HD Hyundai Electric, Hyosung Heavy Industries, and Taihan Cable & Solution are all experiencing a boom.
Cho Hwan-eik, a former president of Korea Electric Power Corporation and a professor at Kookmin University, said, “The power industry is one of the highly growing and competitive industries. It needs to be fostered as a future growth engine with policy support.”
