The smart metering market in Southeast Asia will reach $6.9 billion by 2022, according to a new study released by Northeast Group LLC.
The study says the majority of Southeast Asia's smart grid activity will take place in the second half of the 2012-2022 forecast period, after strong growth domestic product (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, notes Northeast Group.
Southeast Asia's potential for smart grid activity is largely driven by high projected GDP growth rates, which will boost electricity demand, the company adds. Southeast Asian economies are forecast to grow at an average of nearly 6% annually throughout this decade despite the slowdown in other regions of the world. However, Northeast Group says Southeast Asia's swift growth creates both challenges and opportunities for its electric infrastructure.
Some countries, such as Indonesia and the Philippines, are scrambling to add peak electric generation capacity, while the existing transmission and distribution grids in many other countries are insufficient to meet growing demand, Northeast Group explains.
Rising electricity demand due to GDP growth presents unique challenges for Southeast Asia, but the company expects the region’s countries to invest more than $50 billion annually in overall infrastructure in the next few years, with a significant portion allocated to the power and utility sector.
Indeed, the study says smart grid activity is already increasing, 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, Northeast Group adds.
Low per-capita electricity consumption rates in many of these countries currently make large-scale deployments cost-prohibitive, but Northeast Group says that will quickly change in the coming years, as GDP growth remains high.
For more information on the study, visit Northeast Group's website.
