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Price Competitiveness, Product Differentiation and Low Production Cost Key to Business Progression in the DC Power Systems Market - Demand for direct current (DC) systems is rapidly growing across Southeast Asia, especially in the low and medium power-level segments. The booming telecommunications sector is one of the primary contributors to this momentum
Price Competitiveness, Product Differentiation and Low Production Cost Key to Business Progression in the DC Power Systems Market

 

PRZOOM - /newswire/ - Singapore, Singapore, 2008/11/07 - Demand for direct current (DC) systems is rapidly growing across Southeast Asia, especially in the low and medium power-level segments. The booming telecommunications sector is one of the primary contributors to this momentum.

   
 
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Widespread deployment of high-speed Internet transmission in wireline applications and the huge rollout of wireless applications in Indonesia, Thailand, the Philippines, and Vietnam will keep growth levels on an upward trajectory in the region. However, the market is extremely price-sensitive and manufacturers with the capability to provide efficient lead time, along with competitive pricing, will find favor among end users.

New analysis from Frost & Sullivan (powersupplies.frost.com), Southeast Asian DC Power Systems Market, finds that market earned revenues of over $404.2 million in 2007 and estimates this to reach $1.12 billion in 2014.

“Global system for mobile communication (GSM) has the highest contribution for DC power systems in the telecom industry,” says Frost & Sullivan Research Analyst Teoh Chew Yew. “Vietnam and Indonesia have emerged at the forefront of market development, largely due to their low mobile penetration rates of below 44.0 percent and 7.0 percent, respectively.”

Other end-user sectors that have contributed to market progression are the oil and gas, marine, manufacturing, and military segments. In Indonesia, Malaysia, and Vietnam, the oil and gas sector has helped sustain the tempo of development with huge demand arising from the supply of power to the additional communications systems and power distribution to new platforms and vessels.

While DC power systems with integrated solar power were introduced into the market to provide systems more in tune with environmental regulations, cost-efficiency remains the primary concern for end users. Along with government initiatives and schemes to promote the green approach, market participants are placing a great deal of emphasis on cost-effectiveness.

One reason for this is the volatility of the prices for raw materials like copper and lead. This erodes profit margins for manufacturers even as they focus on competitive pricing to sustain market share. The average price per watt per unit has shown a marked decrease over the past five years, declining from $5.00 to below $0.20 per watt per unit, depending on system specification.

To overcome pricing pressure, manufacturers, especially in the telecom sector, are exploring other options such as design outsourcing or establishing manufacturing bases in China. Nurturing and establishing partnerships with local manufacturers, value-added resellers, and distributors will also help participants in business promotion and divergence.

“Manufacturers are striving hard to widen their portfolio of products and develop DC power systems that offer higher power density, lower power dissipation, and smaller footprint,” notes Chew Yew. “Ultimately, the combination of efficient lead time and competitive pricing will provide a potent mix for successful business outcomes.”

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Southeast Asian DC power systems market, then send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

Southeast Asian DC Power Systems Market is part of the Power Supplies Growth Partnership Service program, which also includes research in the following markets: Thailand UPS, Southeast Asian Stationary and Motive Lead Acid Batteries, Philippines UPS. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

Southeast Asian DC Power Systems Market
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Price Competitiveness, Product Differentiation and Low Production Cost Key to Business Progression in the DC Power Systems Market

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