Booming Power Industry in ASEAN Countries Stokes Demand for Automation, Finds Frost & Sullivan
Improving political climate and financial guarantees are vital for automation vendors' growth
KUALA LUMPUR, Malaysia, June 24, 2015 /PRNewswire/ -- The power and infrastructure industry in Laos, Cambodia and Myanmar are abuzz with activity as all three countries look to meet the needs of their burgeoning industries. Laos is striving to increase its power output, especially hydropower, to cater to the escalating demand from China and Singapore; while Cambodia is exploring ways to improve energy efficiency to aid its rural electrification drive. These trends point to significant opportunities for automation and control vendors in the Association of Southeast Asian Nations (ASEAN) region.
New analysis from Frost & Sullivan, Automation and Control Market in Emerging ASEAN Countries—Laos, Cambodia, and Myanmar (http://www.frost.com/p853), finds that the total market earned revenues of US$198.0 million in 2014 and estimates this to reach US$300.0 million in 2019, at a compound annual growth rate of 8.7 percent.
The government of Mandalay, Myanmar, assisted by the United States, is likely to roll out a US$480-million solar power project to meet up to 12 percent of the country's power generation needs. This underlines foreign investors' interest in Myanmar, and translates to brighter business prospects for automation vendors.
Furthermore, the significant progress in the political situation in Myanmar over the last three years is fueling interest among automation vendors. As the number of restrictions with regard to import and export reduces, Myanmar will become a more attractive investment destination.
"Since Laos, Cambodia and Myanmar are growing economies, they will welcome foreign assistance in technology, capital, and intellectual resources," said Frost & Sullivan Industrial Automation & Process Control Senior Research Analyst Krishnan Ramanathan. "There is already evidence of this, especially in Myanmar, where the government is offering investment protection guarantees for foreign investors."
Meanwhile, Vietnam has worked on 413 projects in Laos, worth almost US$5.00 billion. This is expected to cross US$5.8 billion in 2015, mostly due to investments in the power sector.
Apart from the power industry, the oil and gas sector will generate huge demand for automation equipment. A case in point is the collaboration between the Cambodian Petrochemical Company and Sinomach China Perfect Machinery Industry Corp for the construction of the first oil refinery in Cambodia. In addition to lowering the country's dependence on imports, this project will expand the installed base of automation devices.
"Despite political and economic challenges, the emerging ASEAN countries of Laos, Cambodia and Myanmar will be important markets for automation vendors in greenfield projects," observed Ramanathan. "Among the three, Laos, followed by Myanmar, will be the most lucrative market in the next five to ten years."
If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at [email protected].
Automation and Control Market in Emerging ASEAN Countries—Laos, Cambodia, and Myanmar is part of the Industrial Automation & Process Control (http://www.industrialautomation.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Automation and Control Market in Thailand, The Indonesian Automation and Control Market, Automation & Control Market in Malaysia, Automation and Control Market in The Philippines. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Automation and Control Market in Emerging ASEAN Countries—Laos, Cambodia, and Myanmar
P853-10
Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: [email protected]
Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402
E: [email protected]
Melissa Tan
Corporate Communications – Asia Pacific
P: +65 6890 0926
F: +65 6890 0999
E: [email protected]
SOURCE Frost & Sullivan
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