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Regional Infrastructure Development Programs Fuel the SEA Power and Distribution Transformers Market Finds Frost & Sullivan - Both rural and urban electrification projects augment market revenues -
Regional Infrastructure Development Programs Fuel the SEA Power and Distribution Transformers Market Finds Frost & Sullivan


NewswireToday - /newswire/ - Singapore, Singapore, 2015/01/08 - Both rural and urban electrification projects augment market revenues -

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The lack of a sturdy electrification grid in several countries such as Indonesia, the Philippines, Myanmar, Vietnam, and the Sarawak region of Malaysia have prompted power utility companies to budget for grid installations and expansions. The electrification expansion programs of utilities in most of these countries are giving a huge boost to the transformers market in the region.

New analysis from Frost & Sullivan, Southeast Asia Power and Distribution Transformers Market, finds that the market earned revenues of US$1.34 billion in 2013 and is estimated to reach US$1.77 billion in 2018. At 50.6 percent, 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.

If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah[.]

Rural electrification projects in Indonesia, Malaysia, Vietnam and the Philippines accounted for the majority of the market revenue in 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 percent 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 & Environmental Industry Analyst Avanthika Satheesh.

“In particular, Sarawak Energy in Malaysia, PLN in Indonesia, and the National Power Corporation in the Philippines are planning to electrify rural areas using renewable energy sources,” she added.

However, in Thailand, political uncertainty has delayed the rollout of several transmission projects. Projects are also being deferred due to labor shortage, 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.

While some markets in Southeast Asia are experiencing slow growth, the increasing urbanization 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 datacenters.

“Industrial expansion will create demand for both power and distribution transformers. Heavy industries such as iron and steel, metals and chemicals are highly energy-intensive, requiring large power transformers; whereas textile and food and beverages plants run on small power transformers,” observed Satheesh.

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 percent from 2013 to 2018 in the Southeast Asia power and distribution transformers market.

Southeast Asia Power and Distribution Transformers Market is part of the Energy & Power ( Growth Partnership Service program. Frost & Sullivan’s related studies include: Managing Flexibility in European Electricity Grids, South African National Development Plan 2030 and the Industrial Policy Action Plan, Asia-Pacific Microgrid Market, The South African Electricity Industry ISMO and the Road to Reform, and East African Transmission and Distribution Industry. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Southeast Asia Power and Distribution Transformers Market / P845-14

Contact: Melissa Tan - Corporate Communications Asia Pacific
P: +65 6890 0926 / F: +65 6890 0999 - E: melissa.tan[.]

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Regional Infrastructure Development Programs Fuel the SEA Power and Distribution Transformers Market Finds Frost & Sullivan

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