Frost & Sullivan: Utilities' Increasing Expenditure on Renewable Energy to Expand the Market for Microgrids
AI-integrated facilities management solutions to find higher growth opportunities
SINGAPORE, June 10, 2019 /PRNewswire/ -- In 2019, Oil & Gas (O&G) capital expenditure (CAPEX) in exploration and production (E&P) is expected to grow by 7 percent to touch nearly US$600 billion, however, the sector will experience a year-on-year reduction in brent crude oil price in 2019. Renewable energy segments like wind and solar power will get a boost as Taiwan, China, South Korea, and Japan move towards offshore farms while coal will have neutral outlook as some countries defer the building of new plants.
"The growing use of renewable energy will aid supporting markets such as Energy Storage Systems (ESS) and Microgrids. Another important trend is that utilities will start deploying more Advanced Metering Infrastructure (AMI) solutions in 2019," said Melvin Leong, Director, Energy & Environment, Asia Pacific, Frost & Sullivan.
"As utilities strive to be more resilient to water scarcity due to extreme weather conditions, there will be intensified focus on water management solutions. The CAPEX of APAC water utilities will rise by 9.8 percent in 2019, with emphasis on urban water management," he explained.
Frost & Sullivan's recent analysis, Asia-Pacific Energy & Environment Industry Outlook, 2019, provides an inclusive perspective of the energy and environment value chain. It offers insights into the competitive landscape, analyzes future business models, and examines current and future growth opportunities. It presents the disruptive trends in the market with possible call-to-action for incumbent companies and emerging solution providers.
For further information on this analysis, please visit: http://frost.ly/3ir
"In addition to utilities, buildings too are adopting digital solutions, expanding the opportunities for suppliers with digital maintenance and service solutions In particular, the Facilities Management (FM) market will grow by 4.1 percent in 2019. Key FM markets include China, India, Indonesia, Thailand, and Vietnam," noted Leong.
"Meanwhile, the evolving usage of Artificial Intelligence (AI) and co-working space is placing considerable emphasis on services that can enhance end-user experience and operational efficiency," he added.
The Asia-Pacific energy and environment industry will tilt towards collaborations with start-ups, use of AI, blockchain, and sustainability. Suppliers will be able to garner greater growth opportunities by:
- Developing new business models such as XaaS and performance contracting as well as engaging in technical collaborations and financing.
- Increasing R&D related to AI integration.
- Strengthening digital management capabilities. This can be achieved by outsourcing or partnerships with Blockchain solutions providers or developing them in-house.
- Improving environmental footprint through reduced resource consumption and use of alternative and green resources.
Asia-Pacific Energy & Environment Industry Outlook, 2019 is part of Frost & Sullivan's global Energy & Environment Growth Partnership Service program.
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Asia-Pacific Energy & Environment Industry Outlook, 2019
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SOURCE Frost & Sullivan
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