According to research from Frost & Sullivan, demand for uninterrupted power in energy-intensive markets is boosting demand for generator sets in Southeast Asia.
The market had revenues of $281.1 million in 2006 and is expected to reach $504.1 million in 2013, the research showed.
“Besides remote area electrification, the rapidly growing infrastructure to accommodate commercial and industrial developments in major cities maintains a steady, though rather slow market growth,” said Frost & Sullivan Research Analyst Suchitra Sriram. “With companies investing in generator sets to avert unexpected financial losses and inefficient performance due to power outages, demand for diesel powered generators is sustained despite rising fuel costs.”
Improvements to the power transmission and distribution lines in the region, economical electricity rates in Malaysia, low-cost imported products from competitors and developing renewable energy technologies (RETs) are inhibiting generator market growth, the report said.
Although better for the environment and with low operating costs, RETs are generally unavailable in more remote areas, thus aiding the growth of the generator set market.
“Although the industrial and commercial end-user segments continue to promote new equipment sales, dealers can garner larger market shares by aggressively marketing their products, offering value-added services, customer service, spare parts sales, consultancy and technology upgrades when needed,” noted Sriram.
To view the report, click here.