|By PR Newswire||
|February 11, 2014 02:50 AM EST||
KUALA LUMPUR, Malaysia, Feb. 11, 2014 /PRNewswire/ -- Heavy capital investments in power generation, transmission, and distribution (T&D) infrastructure to meet the increasing power demand across Southeast Asia are sustaining the Asia-Pacific switchgear market. While the market in Southeast Asia grew significantly in 2013, mature markets such as East Asia, Australia and New Zealand (ANZ) showed a decline for the second consecutive year. The overall market, however, is likely to show positive growth in the coming years.
New analysis from Frost & Sullivan, Asia-Pacific Switchgear Market - 2013 Update, finds that the market earned revenues of US$5.97 billion in 2013 and estimates this to reach US$6.77 billion in 2018. The research covers low voltage, medium voltage, and high voltage switchgears.
"Rapid development of industrial and commercial infrastructure across several industries will boost the sale volumes of switchgears in Southeast Asia," said Frost & Sullivan Energy & Environmental Research Analyst Harsh Thacker. "In East Asia and ANZ, industry development programs and the need to replace aging power networks will be the predominant market drivers."
However, many power T&D utilities in mature markets like Australia and Japan are unable to replace old switchgears as they are cash deprived due to slow economic growth and expenditure on costly oil-generated power. The sluggish growth in these markets will eventually lead to large firms partnering with each other or taking over small participants.
The Asia-Pacific switchgear market also faces intense price competition, which is reducing the overall profitability of manufacturers in this space. Competition is set to further increase with Chinese and Indian original equipment manufacturers (OEMs) entering Southeast Asia and gaining market share on the basis of lower pricing.
"To navigate the competitive landscape, switchgear OEMs should continue the practice of internationalizing the lower end of the value chain of their businesses to cheaper locations in Asia and aggressively sell in Southeast Asia to diversify market risks," suggested Thacker. "In addition, it will be important to improve after-sales services and further cut down production costs by adopting innovative methods."
If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at [email protected], with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
Asia-Pacific Switchgear Market - 2013 Update is part of the Energy & Power (http://www.energy.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Southeast Asian High Voltage Transmission Market, Southeast Asia Transmission and Distribution Substation Market, Southeast Asia Renewable Energy Market, and Global Advanced Metering Infrastructure (AMI) Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
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Asia-Pacific Switchgear Market - 2013 Update
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