Southeast Asia Smart Metering Market To Reach $6.9 billion by 2022
WASHINGTON, Sept. 24, 2012 /PRNewswire/ — The smart metering market in Southeast Asia will reach $6.9 billion by 2022, according to a new study released today by Northeast Group, LLC. The study Southeast Asia Smart Grid: Market Forecast (2012-2022) forecasts the growth of advanced metering infrastructure (AMI), or smart metering, in eight Southeast Asian countries over the next decade. It also provides details on additional smart grid projects taking place in the region. The majority of Southeast Asia’s smart grid activity will take place in the second half of the forecast period, after strong GDP growth rates have further increased electricity consumption. Already, domestic and international smart grid vendors are positioning themselves in the region to capitalize on the projected growth in the market.
“Southeast Asia’s potential for smart grid is largely driven by high projected GDP growth rates which will boost electricity demand,” according to Northeast Group. “Southeast Asian economies are forecast to grow at an average of nearly 6% per year throughout this decade despite the slowdown in other regions of the world. Southeast Asia’s swift growth creates both challenges and opportunities for its electric infrastructure.”
Chief among the challenges are concerns that unreliable electric infrastructure and rising energy costs could dampen overall economic growth potential. Countries such as Indonesia and the Philippines are scrambling to add peak electric generation capacity, while in many countries the existing transmission and distribution grids are insufficient to meet growing demand. Power outages are already commonplace and likely to increase if new infrastructure is not deployed. Meanwhile, dependence on foreign sources of fuel introduces price risks to customers–and in many cases the governments that subsidize their power.
“Rising electricity demand due to GDP growth presents unique challenges for Southeast Asia,” Northeast Group continued. “But the financial flexibility that growth provides also creates opportunities. Southeast Asian countries are expected to invest more than $50 billion per year in overall infrastructure in the next few years, with a significant portion allocated to the power and utility sector. Investments in smart grid will be a critical component of these expenditures. They will help manage electricity demand growth, improve reliability, and increase the share of domestic renewable sources of energy in the generation mix.”
Indeed, smart grid activity is already picking up, led by the developed economy of Singapore, which has plans for a full smart meter deployment. Pilot projects are also already in development in Thailand and Malaysia, with additional projects under discussion in Indonesia and the Philippines. In anticipation of the increased activity, domestic firms, international smart metering vendors, and communications providers are positioning themselves in the Southeast Asian smart grid market. In addition to smart metering, there are large opportunities for distribution automation vendors and even vendors for projects such as smart street lighting.
“The smart metering market is rapidly advancing in Southeast Asia. Low per-capita electricity consumption rates in many of these countries currently make large-scale deployments cost prohibitive, but that will quickly change in the coming years, as GDP growth remains high. Additionally, in some countries in the region, electricity theft rates are above average and can be best addressed with smart metering. Along with improved reliability, these factors show that the benefit potential of smart grid in Southeast Asia is quickly increasing. In response, the number of local firms in the market and partnerships between international and Southeast Asian metering vendors is expected to pick up in the medium term,” added Northeast Group.
Northeast Group forecasts 5 sub-segments of the AMI market, including meter hardware, communications, IT, professional services, and installation for eight countries across Southeast Asia. Countries covered include:
In addition to AMI market forecasts, the report surveys activity in distribution automation, wide area measurement, and home energy management. The report also highlights domestic and international firms active in the market.
Northeast Group’s report is 123 pages long and includes over 70 charts, tables and graphics. The report was completed using both primary and secondary sources, including on-the-ground research in the region. To order a copy of the report, please email Ben Gardner at: firstname.lastname@example.org
ABOUT: Northeast Group, LLC is a Washington, DC-based smart grid market intelligence firm. Our research is focused on the smart grid opportunity in emerging market countries.
Key questions answered in this report:
- How large will the smart meter market in Southeast Asia become over the next decade?
- Which countries are developing smart grid regulatory frameworks and what will they look like?
- Which international vendors are already active in Southeast Asia? Which domestic vendors could become key players?
- How will recent industry reforms and restructuring affect the smart grid market?
- What pilot projects are in place and what hurdles have they faced?
- How will efforts at the regional level from ASEAN affect grid modernization?
Table of Contents i. Executive Summary 1 ii. Methodology 8 1. Introduction 10 1.1 What is smart grid? 10 1.2 Smart grid's role in regional interconnection 16 1.3 How has smart grid been used elsewhere in the world? 18 2. Southeast Asia smart grid snapshot 24 2.1 The region in comparison 26 2.2 Regional drivers 28 2.3 Regional challenges 32 2.4 Most recent developments 34 3. Regional market forecast 37 4. Singapore 41 4.1 Electricity industry structure 43 4.2 Smart metering regulatory environment 45 4.3 Market forecast 46 4.4 Utility activity 48 5. Thailand 51 5.1 Electricity industry structure 53 5.2 Smart metering regulatory environment 55 5.3 Market forecast 57 5.4 Utility activity 59 6. Malaysia 64 6.1 Electricity industry structure 64 6.2 Smart metering regulatory environment 68 6.3 Market forecast 70 6.4 Utility activity 72 7. Indonesia 74 7.1 Electricity industry structure 76 7.2 Smart metering regulatory environment 78 7.3 Market forecast 80 7.4 Utility activity 82 8. Philippines 85 8.1 Electricity industry structure 87 8.2 Smart metering regulatory environment 89 8.3 Market forecast 91 8.4 Utility activity 93 9. Vietnam 95 9.1 Electricity industry structure 97 9.2 Smart metering regulatory environment 99 9.3 Market forecast 101 9.4 Utility activity 102 10. The rest of the region 104 11. Vendor activity 105 11.1 Domestic vendors 106 11.2 International vendors active in smart grid in Southeast Asia 107 11.3 International vendors poised to expand in Southeast Asia 111 12. Conclusion 112 13. Appendix 113 13.1 List of companies covered in this report 113 13.2 List of acronyms 114
List of Figures, Boxes, and Tables Southeast Asia smart grid: key takeaways 2 AMI forecast by country 7 AMI forecast data by country 7 Figure 1.1: Smart grid value chain 10 Figure 1.2: Smart grid model highlighting focus in Southeast Asia 11 Table 1.1: Benefits of AMI in Southeast Asia 13 Table 1.2: Demand response options 15 Figure 1.3: ASEAN grid interconnections 17 Figure 1.4: Smart grid activity in emerging markets 19 Figure 2.1: Emerging markets smart meter potential 25 Figure 2.2: Per-capita electricity consumption 26 Figure 2.3: Per-capita CO2 emissions 26 Figure 2.4: Average annual GDP growth in Southeast Asia 27 Figure 2.5: Per-capita consumption in Southeast Asia 28 Figure 2.6: Renewable sources of energy in Southeast Asia 30 Figure 2.7: Renewable energy potential in 2030 30 Figure 2.8: Distribution losses in Southeast Asia 31 Table 2.1: Smart grid market drivers and barriers in Southeast Asia 33 Figure 3.1: Timeline of smart grid developments in Southeast Asia 37 Figure 3.2: AMI forecast by country 38 Table 3.1: AMI forecast data by country 38 Figure 3.3: AMI cost breakdown 39 Figure 3.4 Annual AMI deployments in Southeast Asia 39 Figure 3.3: Southeast Asia smart meter penetration rate 40 Figure 3.4: Leading Southeast Asian countries' smart meter penetration rate 40 Figure 3.6: AMI forecast by segment 40 Table 3.2: AMI forecast data by segment 40 Table 4.1: Singapore key data 41 Figure 4.1: Singapore AMI penetration rate 41 Table 4.2: Smart grid indicators in the Singapore 42 Box 4.1 Political risk in Singapore 44 Figure 4.2: Singapore AMI forecast 47 Table 4.3: Singapore AMI forecast data 47 Figure 4.3: Intelligent Energy System program 49 Table 5.1: Thailand key data 51 Figure 5.1: Thailand AMI penetration rate 51 Table 5.2: Smart grid indicators in Thailand 52 Figure 5.2: Electricity industry structure in Thailand 54 Box 5.1: Political risk in Thailand 56 Table 5.3: Thailand AMI forecast data 57 Figure 5.3: Thailand AMI forecast 58 Figure 5.4: PEA's 15-year smart grid plans 62 Table 6.1: Malaysia key data 64 Figure 6.1: Malaysia AMI penetration rate 64 Table 6.2: Smart grid indicators in Malaysia 65 Box 6.1: Political risk in Malaysia 67 Figure 6.2: 5 strategic pillars of Malaysia's New Energy Policy 69 Figure 6.2: Malaysia AMI forecast 71 Table 6.3: Malaysia AMI forecast data 71 Table 7.1: Indonesia key data 74 Figure 7.1: Indonesia AMI penetration rate 74 Table 7.2: Smart grid indicators in Indonesia 75 Box 7.1: Political risk in Indonesia 78 Figure 7.2: Indonesia AMI forecast 81 Table 7.3: Indonesia AMI forecast data 81 Figure 7.3: Annual meter deployments in Indonesia 83 Table 8.1: Philippines key data 85 Figure 8.1: Philippines AMI penetration rate 85 Table 8.2: Smart grid indicators in the Philippines 86 Box 8.1: Political risk in the Philippines 89 Figure 8.2: Philippines AMI forecast 92 Table 8.3: Philippines AMI forecast data 92 Table 9.1: Vietnam key data 95 Figure 9.1: Vietnam AMI penetration rate 95 Table 9.2: Smart grid indicators in Vietnam 96 Figure 9.2: Electricity regulatory structure in Vietnam 98 Box 9.1: Political risk in Vietnam 99 Table 9.3: Vietnam AMI forecast data 101 Figure 9.3: Vietnam AMI forecast 102 Table 10.1: Cambodia key data 104 Table 10.2: Laos key data 104 Figure 11.1: Leading smart grid vendors in Southeast Asia 105 Table 12.1: The next steps and necessary actions 112
Companies covered in this report
- ABB (Switzerland)
- Accenture (US)
- Alstom (France)
- Cisco (US)
- Clarity (Australia)
- Comintel (Malaysia)
- Echelon (US)
- Electricity Generating Authority of Thailand
- Electricity of Vietnam
- Elster (Germany)
- GE (US)
- Hitachi (Japan)
- Holley Metering (China)
- Itron (US)
- Landis+Gyr (Switzerland)
- Meralco (Philippines)
- Metropolitan Electricity Authority (Thailand)
- MiM (Malaysia)
- Mitsubishi (Japan)
- National Grid Corporation of the Philippines
- Perusahaan Listrik Negara (Indonesia)
- Petronas (Malaysia)
- Provincial Electricity Authority (Thailand)
- Power Seraya (Singapore)
- Sabah Electricity (Malaysia)
- Sarawak Energy (Malaysia)
- Senoko Power (Singapore)
- Siemens (Germany)
- Silver Spring Networks (US)
- Singapore Power (Singapore)
- ST Electronics (Singapore)
- Tenanga Nasional Berhad (Malaysia)
- Toshiba (Japan)
- Trilliant (US)
- Tuas Power (Singapore)
SOURCE Northeast Group, LLC