Electrical transformer market booming in Asean
The lack of a sturdy electricity grid in several countries such as Indonesia, the Philippines, Myanmar and Vietnam, as well as the Sarawak region of Malaysia, has led power companies to budget for grid installations and expansions. These expansion program
Political chaos in this country has delayed the roll-outs of several power-transmission projects. Projects are also being deferred because of labour shortages, lack of initiative from power utilities, and financial constraints. Additionally, market revenues have taken a hit from the influx of low-cost Chinese and Korean products, said the analysis by Frost & Sullivan, "Southeast Asia Power and Distribution Transformers Market".
The research finds that the market earned revenue of US$1.34 billion (Bt44 billion) in 2013 and is estimated to reach $1.77 billion in 2018. At 50.6 per cent, the revenue contribution from the distribution segment was slightly higher than from the power segment and is expected to remain so during the forecast period.
The research shows that rural electrification projects in Indonesia, Malaysia, Vietnam and the Philippines accounted for most of the revenue in the distribution segment. For the power-transformers segment, new power plants, transmission lines and substation projects were the biggest earners. In Indonesia, rural electrification has been accorded high priority, with the government targeting 90 per cent electrification by 2025. Other countries with sub-optimum electrification, such as the Philippines and Malaysia, are also undertaking similar electrification drives. These initiatives will considerably bolster the transformers market in the region.
"Renewable-energy projects for rural electrification are gaining momentum in the islands and dense forest areas of Southeast Asia," said Frost & Sullivan energy and environmental industry analyst Avanthika Satheesh.
While some markets in Southeast Asia are experiencing slow growth, the increasing urbanisation rates in Vietnam, Indonesia and Myanmar are keeping the transformer market afloat. Cities in these countries will demand increased loads of electricity for the construction of new shopping malls, offices, shops, hotels and data centres.
Overall, both residential and commercial infrastructure development in large and mid-sized cities in Indonesia, Vietnam and the Philippines is expected to create high demand for transformers. These projects will play a huge role in stoking a compound annual growth rate of 5.6 per cent from 2013 to 2018 in the Southeast Asia power and distribution transformers market.
