Plans to improve electrification in several countries across the region will catalyse market development
The Asia-Pacific (APAC) transmission and distribution (T&D) market outlook for this year looks robust for power equipment such as transformers, switchgears, electricity meters and power cables. The expected increase in grid investments compared to 2014 will drive the uptake of T&D equipment in the region. T&D equipment manufacturers have been strengthening their facilities to support the growing domestic demand for their products.
New analysis from Frost & Sullivan, Asia-Pacific Transmission and Distribution Outlook Study (http://www.frost.com/p862), finds that the T&D equipment market earned revenues of US$22.66 billion in 2014 and estimates this to reach US$24.11 billion in 2015.
"With electricity utilities in countries such as Japan preparing for the nationalised grid restructuring program, investments in T&D equipment will gain pace," said Frost & Sullivan Energy & Environmental Industry Analyst Avanthika Satheesh.
"Efforts to extend the grid to remote communes in developing nations like Vietnam, Indonesia and the Philippines will also lend momentum to the APAC T&D equipment market," she added.
Opportunities for T&D equipment manufacturers will be especially strong in Indonesia, as rural electrification is the highest priority of the country's utilities, which aim to achieve 90 percent electrification by 2025. Similar plans in the Philippines and Malaysia, where electrification rates are below 100 percent, will further brighten market prospects.
"Other lucrative markets for T&D equipment manufacturers are Japan, South Korea and Australia. These countries will see investments in certain smart grid technologies such as distribution grid automation, smart meters and demand response systems rise. With the expected privatisation of the Australian grid in 2015 and the mushrooming of microgrid projects in APAC, market participants should focus on these markets to boost revenues," noted Satheesh.
While the political situation in Thailand delayed the implementation of several T&D projects in the country in 2014, the market condition is anticipated to improve this year. Thus, more investments will pour in and the central Government will sanction numerous T&D projects, making this too a worthwhile market to explore.