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Affordable Prices & Partnerships Determine Success or Failure in the Southeast Asian Transmission & Distribution Cables Market Finds Frost & Sullivan - The well-developed Southeast Asian transmission and distribution (T&D) cables market is progressing at a steady pace
Affordable Prices & Partnerships Determine Success or Failure in the Southeast Asian Transmission & Distribution Cables Market Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Singapore, Singapore, 2009/04/27 - The well-developed Southeast Asian transmission and distribution (T&D) cables market is progressing at a steady pace.

   
 
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Factors providing positive market momentum include increase in power demand, building and industrial construction development, government interest in raising infrastructural developments, and power sector reforms that contribute to overall energy infrastructure development. Participants are engaged in establishing partnerships and devising smart pricing strategies to navigate the competitive marketplace.

New analysis from Frost & Sullivan (energy.frost.com), Southeast Asian Transmission and Distribution (T&D) Cables Market, finds that market earned revenues of over $27.13 billion in 2008 and estimates this to reach $44.67 billion in 2015.

"During the last ten years, the T&D cables segments in the region have made huge strides, responding to the high economic growth rate in the region,' says Frost & Sullivan Research Annalist Do Thai Son. "Exports to other regions such as the Middle East, Australia, America, Vietnam, and Indonesia provided a fillip to the cables market."

Indonesia is the largest power cables market in Southeast Asia and prospects will continue to be upbeat for the T&D cables segment over the medium and long term. The country has set a target to complete the power interconnecting line between of major islands recently and to achieve an electrification ratio up to 90 percent in the next ten years.

The recent boom in the building and industrial construction sector in Vietnam is also opening up new avenues for cable suppliers. The structure of the cables industry is quite stable and the demand for both transmission and distribution cables is expected to maintain its upward trajectory. The Philippines offer the greatest potential for submarine electric cables.

However, the recent fluctuation in the price of copper and aluminum has affected the selling price of cables. Price and lead time are the major competitive factors in the market. Aluminum and copper prices in Southeast Asian countries had increased by almost 30.0 to 40.0 percent between 2007 and 2008 due to limited supply but are expected to decrease during the short term. The Southeast Asian countries import 60.0 percent to 70.0 percent of non-ferrous metal from countries such as China, Korea, and Europe.

"The high dependence on imported raw material adds further risks to Southeast Asian manufacturers from fluctuation in global costs and exchange rates," says Thai Son. "End users and investors are reluctant to make significant investments as doubts emerge over economic performance and the extent of the government's commitment."

Participants must work toward enhancing flexibility and adaptability with changes in the business environment and standards and provide comprehensive packages or customized solutions specifically designed for each end-user group. As companies are striving to provide a broader portfolio of products, the industry is experiencing increasing consolidation.

For instance, in response to the dip in aluminum and copper prices by 60 percent and 70 percent, respectively during the third quarter of 2008, manufacturers in the Southeast Asian region slashed cable prices using aluminum and copper conductors by 60 percent and 50 percent, respectively.

While lead times are variable and depend on the production capacity of each company in the region, of late, robust demand has considerably ratcheted up the lead time required to supply cables. As companies are striving to provide a broader portfolio of products, the industry is experiencing increasing consolidation

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

Southeast Asian Transmission and Distribution (T&D) Cables Market is part of the Energy and Power Growth Partnership Service program, which also includes research in the following markets: UPS, DC power system, power transmission and distribution services market, turbo machinery services market, renewable market, etc. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

Southeast Asian Transmission and Distribution (T&D) Cables Market / P251

 
 
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Affordable Prices & Partnerships Determine Success or Failure in the Southeast Asian Transmission & Distribution Cables Market Finds Frost & Sullivan

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