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Growth in Renewable Installations and Smart Distribution Networks in Asia-Pacific Provide Opportunities for Switchgear Market Finds Frost & Sullivan - Frost & Sullivan observes that strong infrastructural investments will place the Southeast Asian market in the high-growth trajectory - Frost.com
Growth in Renewable Installations and Smart Distribution Networks in Asia-Pacific Provide Opportunities for Switchgear Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Kuala Lumpur, Malaysia, 2016/05/25 - Frost & Sullivan observes that strong infrastructural investments will place the Southeast Asian market in the high-growth trajectory - Frost.com.

   
 
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Southeast Asia is the biggest gainer from East Asia’s shrinking market size, as energy companies are increasingly shifting operations to the former region through acquisitions and joint ventures. These companies, including switchgear original equipment manufacturers (OEMs), are looking to tap the opportunities created by the expected growth in renewable integration as well as transmission and distribution (T&D) development projects.

New analysis from Frost & Sullivan, Asia-Pacific Switchgear Market 2015 Update, finds that the switchgear market earned revenue of US$5.93 billion in 2014 and estimates this to reach US$6.81 billion in 2019. The ambitious plans to increase renewable installations in Asia-Pacific region and urban planning and development are set to have a positive impact in the medium- and high-voltage (MV and HV) switchgear markets.

As Asia-Pacific rolls out significant electrification projects across the region to cope with the surge in peak power demand, there will be enhanced demand for switchgears. Besides, as renewable energy projects in Asia-Pacific are still in the growth phase, there has been a sizeable expansion of the installed capacity base, translating to greater sales opportunities.

“Countries such as Singapore and Japan have been especially active in implementing smart city concepts,” saidFrost & Sullivan Energy & Environment Research Analyst Adwaith Visveswaran. “This has prompted OEMs to produce switchgear products with intelligent communication, remote operation and feedback systems.”

Additionally, with stringent technical specifications ruling major industries and sectors in Asia-Pacific, it is imperative that switchgear OEMs conform with the latest IEC 61439 standard.

However, the country that holds the most sway over the Asia-Pacific market is China. Since most countries in the region rely on exports to China, the volatility in oil price coupled with China’s currency devaluation has weakened commodity prices and sent economic tremors across Asia-Pacific.

“Chinese switchgear manufacturers, on the other hand, are capitalizing on the constant flux in the global economy and significant budget cuts,” noted Visveswaran. “This economic environment has compelled utilities to demand low-priced electrical products, causing Chinese OEMs to flood the Asia-Pacific market.”

In order to stay afloat in the highly fragmented and cost-competitive market, global players are adopting a mix of market-entry strategies. While some have acquired or signed joint ventures with established local players, others have expanded their sales distribution channels. However, owing to preference given to local companies, joint ventures are seen as the best way forward.

Asia-Pacific Switchgear Market 2015 Update is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan’s related studies include: China Natural Gas Outlook, Asia-Pacific Smart Grid Market 2015 Update, Global Smart Electricity Meter Market and US Digital Protective Relay Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

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The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

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Asia-Pacific Switchgear Market 2015 Update / P8C4-14

 
 
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Growth in Renewable Installations and Smart Distribution Networks in Asia-Pacific Provide Opportunities for Switchgear Market Finds Frost & Sullivan

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