Demand for Uninterrupted Power Supply Drives Generator Sets Markets in Southeast Asia
The Southeast Asian generator sets markets hold immense potential for companies in the field of stand-by application of power due to the region’s rapid commercial and industrial developments. Market trends point toward the increased demand for generator sets in the Philippines, Indonesia, and Vietnam due to inadequate power infrastructure in the mainland and remote possibilities for grid extensions to the numerous adjacent islands. Conversely, the market is severely restricted in Singapore, Malaysia, and Thailand, which enjoy uninterrupted power supply from their excellent national power grids.
"The demand for stand-by power arises primarily from the expanding urban areas and industrialized parts of Southeast Asia, which demand uninterrupted and quality power for their energy-intensive industries and operations," says the analyst of this research service. Generator sets are the best alternative power supply sources in this region, which is frequented by natural calamities such as earthquakes, landslides, and typhoons, which disrupt power supply. Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam extensively use generator sets up to 3 MW for diverse applications, especially for stand-by power purposes. These sets provide immediate power back up during black outs and fluctuations, and help maintain uninterrupted relief and reconstruction activities. They also reduce dependency on power grids in unstable areas and supply power to remote and inaccessible areas, triggering developments in these regions.
Participants to Offset Market Challenges with Valuable Customer-friendly Offerings
Presence of low-cost imports restrains reputed generator set brands from garnering larger market shares. This challenge can be overcome by encouraging end users to sign long-term service agreements with leading brands and alerting customers about the lack of efficient service networks and non-availability of spare parts for these cheaper options. "Owing to the highly price competitive nature of this mature market, companies need to focus on enhancing their growth potential through avenues such as strong brand building, availability of spare parts, timely delivery of equipment, providing value-added services, and excellent customer support and solutions," suggests the analyst of this research service.
Heightened awareness of renewable energy technologies (RETs) such as mini-hydro, solar, wind, and biomass in power generation has also proved to be a serious hurdle to attracting investments for generator sets. However, this is not a viable option in remote areas due to the high investment costs involved, and hence, generator sets continue to be the preferred mode of power supply herein these areas.