Power Rental Market in Southeast Asia 2016-2020
Market overview of the power rental market in Southeast Asia
Technavio’s market research analyst predicts the power rental market in Southeast Asia to grow at a steady CAGR of around 11% by 2020. Rapid economic development and accelerated investments in various industries have increased the power consumption in Southeast Asia. Due to poor T&D and low power production, the utility sector is unable to meet the rising demand for electricity. This has increased the instances of power blackouts, which in turn drives the need for power rental in this region.
The augmented demand for power from the industrial sector is the key driver for the growth of this market. The need for temporary power supply in the industrial sector is increasing due to the supply-demand gap for electricity. Many industries require a constant power supply to achieve optimum operational capacity and avoid financial losses due to outages. This shortage of electricity has forced the government to introduce short-term initiatives like leasing additional power from different islands and using diesel generators for additional capacity.
Competitive landscape and key vendors
The power rental market in Southeast Asia is fragmented due to the presence of numerous small, medium, and large international and regional players. In this market, the vendors that have the capacity to offer generators with capacities ranging from 20 kW to 2,000 kW are expected to gain a competitive edge over their rivals.
Top vendors in this market are -
Technavio Announces the Publication of its Research Report – Power Rental Market in Southeast Asia 2016-2020
Technavio recognizes the following companies as the key players in the Power Rental Market in Southeast Asia: Aggreko, APac, APR, Sewatama and Smart Energy Solutions
Other Prominent Vendors in the market are: Ashtead, Atlas Copco, and Kohler.
Commenting on the report, an analyst from Technavio’s team said: “The supply-demand gap in power in Southeast Asia has encouraged the governments of various countries in the region to commission new power plants to meet the growing demand. The construction of a power plant takes 3-5 years, depending on its capacity. In addition, delays in power plant completion in this region due to lack of investments will add to the low electrification rate. PLN, the largest electricity producer in Indonesia, expects Bali and Java's electricity reserve margin to drop to 16% in 2016 due to delays in the commissioning of multiple power plants.”
According to the report, the need for temporary power supply across utilities and industrial sectors is increasing due to the supply-demand gap for electricity. Many industries require constant power supply to achieve optimum operational capacity and avoid financial losses due to outages.
Further, the report states that uncertain economic conditions are hindering the market growth.
Aggreko, APac, APR, Sewatama, Smart Energy Solutions, Ashtead, Atlas Copco, Kohler.
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