Power Rental Market in Southeast Asia 2016-2020

Description-

Market overview of the power rental market in Southeast Asia

The 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.

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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 -
- Aggreko
- APac
- APR
- Sewatama
- Smart Energy Solutions

The other prominent vendors in the market include Ashtead, Atlas Copco, and Kohler.

End-user segmentation of the power rental market in Southeast Asia
- Utilities
- Oil and gas sector
- Construction sector
- Industrial sector

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In this market study, analysts have estimated the utilities segment to account for more than 30% of the total market share by 2020. Much of this segment’s growth can be attributed to the recent increase in power consumption, which results from the introduction of favorable government subsidies. Since this sector lacks the lack adequate infrastructure to generate the required power, it will witness a high adoption of power generators, which in turn will result in this segment’s growth during the forecast period.

Segmentation by product type and analysis of the power rental market in Southeast Asia

- Diesel generators
- Gas generators
- Hybrid generators

The gas generators segment currently accounts for approximately 16% of the total market share and is expected to witness the fastest market growth rate during the forecast period. Gas generators are increasing gaining popularity among the populace as they are more efficient and produce less harmful emissions than non-renewable fuels. Additionally, factors like its low maintenance cost and high efficiency will foster the adoption of gas-powered generators during the forecast period.

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